The 3.24 lakh crore budget for the year 2026-27 will spend 2,34,406 crore rupees on day-to-day expenses and 47,267 crore rupees on building things (capital expenditure). This shows they’re investing more and spending more overall than they are right now.
Overview of the Budget
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka says this budget is about helping people and finishing important, already started projects. It’s almost 20,000 crore rupees bigger than last year’s, with more money for construction, farming, healthcare, and city infrastructure.
The state is particularly focusing on the Musi Riverfront project to make it look nicer, and continuing to build phases 2 and 3 of the Hyderabad Metro Rail. This fits with the government’s goal of having both noticeable improvements to infrastructure and ways to help people, alongside programs that create jobs.
Fiscal Targets and Revenue Sources
The government thinks it will get 2.41 lakh crore rupees in income in total, which is about 20% more than they expected to get this year. They estimate 1.48 lakh crore rupees will come from taxes, about 10% more than now expected for the current year.
They’re expecting 35,730 crore rupees from things that aren’t taxes, which suggests the state might sell land to get more money. They anticipate getting 33,181 crore rupees from the central government’s taxes and 24,166 crore rupees in grants and other help from the central government.
Borrowing and Debt Profile
Telangana intends to borrow a considerable 73,383 crore rupees from the market, plus another 5,500 crore rupees from loans from the central government and 1,000 crore rupees from other places. All borrowing for the year will be close to 80,000 crore rupees, which is nearly 25% of the total income they expect.
Paying interest on all the money they’ve borrowed will still be a huge expense, totaling 21,304 crore rupees. The budget shows a deficit of 59,458 crore rupees (the difference between spending and income), and the ‘primary deficit’ (deficit before interest payments) will be 37,154 crore rupees. The total amount of money the state owes is almost 6 lakh crore rupees, which emphasizes the importance of spending on development and being able to afford it.
Sectoral Allocations and Priorities
33,688 crore rupees is going to Panchayat Raj and Rural Development, showing they’re prioritizing programs like MGNREGS and building roads in rural areas. Education is getting a large 26,674 crore rupees, and 22,615 crore rupees is for irrigation to finish projects that are already in progress.
Municipal Administration and Urban Development gets 17,907 crore rupees to support the organizations in charge of city projects and the expansion of the metro. Farming will receive 23,179 crore rupees, energy 21,285 crore rupees, and the Medical and Health Department 13,679 crore rupees. These amounts show the government wants to both create visible, new buildings and support essential services for people.
Economic Performance and Outlook
Telangana’s Gross State Domestic Product (the total value of everything produced in the state) is estimated at 17.82 lakh crore rupees for 2025-26, a growth of 10.7% compared to the previous year. Each person in Telangana now earns approximately 4.18 lakh rupees per year, which is considerably more than the average for the whole country.
The finance minister says Telangana is growing faster than the rest of the country and that the government’s plans are helping it stay strong. However, the large amount of borrowing and interest payments will require the government to be careful with its finances to remain stable in the medium term, while still managing to build infrastructure and provide welfare programs.
This budget includes a lot of spending on building things and also directs money to specific social programs. Those making decisions about the budget will need to watch how much money actually comes in (especially from non-tax sources) and how the debt is handled, to make sure the spending leads to lasting growth and better services for people in Telangana.
