The Telangana government is set to present a Rs 3.2 lakh crore budget for 2025-26, focusing on welfare schemes and infrastructure, while facing financial challenges due to revenue shortfalls.
HYDERABAD: The Telangana government is expected to present a Rs 3.15 lakh crore to Rs 3.2 lakh crore state budget for the financial year 2025-26, marking the highest-ever allocation in the state’s history. This represents a significant increase from last year’s budget of Rs 2.91 lakh crore.
A special session of the Telangana Legislative Assembly is likely to be convened in the first week of March to approve key bills related to BC reservations and SC classification. The budget session is expected to commence in the third week of March, following the Governor’s address, with the government aiming to conclude proceedings before March 28, considering upcoming festivals like Ramzan and Ugadi.
Deputy Chief Minister & Finance Minister Mallu Bhatti Vikramarka is currently reviewing department-wise expenditure estimates and gathering details on scheme implementation. Unlike last year, when the state presented an interim budget due to the Lok Sabha elections before introducing a full budget later, this year’s budget will be comprehensive.
According to government sources, the budget will primarily focus on welfare schemes and developmental programs, with special emphasis on fulfilling Congress’ election promises that remained unimplemented in the first year of its tenure. While some initiatives, such as free bus service for women, increased allocations under the Rythu Bharosa scheme, agricultural loan waivers, LPG subsidies, and 200 units of free electricity for women, have been partially implemented, many flagship welfare programs are yet to materialize.
The upcoming budget is expected to prioritize pending schemes, including a monthly stipend for women, financial assistance for unemployed youth, increased social security pensions, the Indiramma housing scheme, and other welfare projects. Agriculture, irrigation, infrastructure, and social welfare are likely to remain key focus areas.
However, the Congress government faces a significant challenge in balancing its ambitious spending plans with Telangana’s weak financial situation. The state is currently struggling with fiscal mismanagement, rising deficits, and sluggish tax revenue collection. Telangana’s actual revenue receipts stand at Rs 1,23,815 crore—only 55.96% of the estimated Rs 2,21,242 crore in the budget, a notable decline from last year’s 63.2% collection rate.
With financial constraints mounting, the state government will need to navigate its budget allocations carefully to ensure both fiscal stability and the fulfillment of welfare commitments.
