The Telangana government on Friday presented its budget for the financial year 2026-27, pegging the total outlay at ₹3,24,234 crore – an increase of nearly ₹20,000 crore over the previous year’s ₹3.05 lakh crore plan.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka tabled the budget in the Assembly, outlining revenue expenditure at ₹2,34,406 crore and a sharply higher capital outlay of ₹47,267 crore, marking over 20 per cent growth in infrastructure spending. Revenue receipts are projected at ₹2.41 lakh crore, reflecting a robust 20 percent rise from ₹2.03 lakh crore in the current fiscal, supported by steady economic momentum.
The state’s Gross State Domestic Product (GSDP) for 2025-26 stood at ₹17.82 lakh crore with a healthy 10.7 per cent growth rate, while per capita income reached ₹4,18,931 – significantly above the national average.
A standout announcement was the launch of the ‘Indiramma Family Life Insurance Scheme,’ set to roll out on June 2, 2026 – Telangana’s State Formation Day. Under this universal cover, each of the state’s 1.15 crore families will receive ₹5 lakh in life insurance protection, underscoring the government’s commitment to family security.
Also, a new breakfast programme for students from pre-primary to intermediate levels will provide milk three days a week and ragi malt on the others, while the Mid-Day Meal scheme has been extended to government junior college students. Kitchen modernisation in hostels and residential schools has received a dedicated ₹100 crore allocation.
The budget also introduces the ‘CM Overseas Employment Programme’ with ₹1,056 crore to train youth in skills, languages, and visa processes for international job opportunities.
Other welfare measures include upgrading select government schools into model Telangana public schools, equipped with modern infrastructure and transport (₹500 crore), cashless health coverage for government employees and pensioners, and a comprehensive accident insurance scheme. The ‘Cheyutha’ social security pension programme has been allocated ₹14,861 crore, including sanctions for two lakh new beneficiaries. Sector-wise, the focus remains sharp on rural and agricultural development:
- Panchayat Raj and Rural Development: ₹33,688 crore
- Education: ₹26,674 crore
- Agriculture and Farmers’ Welfare: ₹23,179 crore (including ₹18,000 crore for the Rythu Bharosa scheme)
- Irrigation: ₹22,615 crore
- Energy (with power subsidies): ₹21,285 crore
- Municipal Administration and Urban Development: ₹17,907 crore
- Medical and Health: ₹13,679 crore
- Transport, Roads and Buildings: ₹12,789 crore
Special attention has been given to social justice, with ₹11,784 crore for Scheduled Castes welfare, ₹7,937 crore for Scheduled Tribes, ₹12,511 crore for Backward Classes, and ₹3,769 crore for minorities.
Housing programmes, including Indiramma Housing, have received substantial backing.
Infrastructure projects such as the Musi Riverfront beautification and expansion of Hyderabad Metro Rail Phases 2 and 3 have been prioritised, alongside the Indira Soura Giri Jala Vikasam scheme that will provide 100 percent subsidised solar pump sets to 2.10 lakh tribal farmers across 6 lakh acres of podu land.
The government has allocated ₹50,713 crore specifically for fulfilling its six poll guarantees, continuing flagship initiatives like free bus travel for women, free power up to 200 units, and women’s self-help group loans.
While the fiscal deficit is estimated at ₹58,458.71 crore and market borrowings at ₹73,383.60 crore, public debt is projected to reach ₹5.62 lakh crore by the end of 2026-27 (29 per cent of GSDP), reflecting the government’s strategy to fund both immediate welfare and long-term asset creation.