Telangana Government Presents Budget 2026-27 with Focus on Inclusive Growth
The Telangana Budget presented by deputy chief minister and finance minister Bhatti Vikramarka Mallu has been estimated at Rs 3,24,234 crore, with revenue expenditure pegged at Rs 2,34,406 crore and capital expenditure at Rs 47,267 crore. The per capita income stands at Rs 4,18,931, reflecting a growth rate of 10.2 percent. Significant allocations have been made towards welfare and essential sectors. Farmers’ welfare has been allotted Rs 23,179 crore, civil supplies Rs 7,366 crore, and animal husbandry Rs 1,529 crore. The power sector has received Rs 21,285 crore, education Rs 26,674 crore, and healthcare Rs 13,679 crore. In the social welfare segment, Rs 999 crore has been earmarked for labour welfare, Rs 3,143 crore for women and child welfare, Rs 11,784 crore for SC welfare, Rs 7,937 crore for ST welfare, Rs 12,511 crore for BC welfare, and Rs 3,769 crore for minority welfare. The government has allocated Rs 6,000 crore for Rajiv Yuva Vikasam and Rs 7,430 crore for housing. The IT sector has been allotted Rs 875 crore, industries Rs 3,490 crore, and handlooms Rs 258 crore. Rural and infrastructure development continue to receive major focus, with Rs 33,688 crore allocated to Panchayat Raj and rural development, Rs 22,615 crore for irrigation projects, and Rs 12,759 crore for the transport department. Further, Rs 2,367 crore has been set aside for the judiciary, Rs 17,907 crore for urban development and municipal administration, and Rs 11,907 crore for law and order. Additionally, Rs 500 crore has been earmarked for Godavari Pushkaralu and Rs 1,224 crore for the tourism department. In the previous 2025–26 budget, the Congress government had earmarked more than Rs 56,000 crore for implementing its flagship ‘six poll guarantees.’ To support its spending plans, the state had also projected raising nearly Rs 64,000 crore through open market borrowings. BRS MLAs staged a walkout during the Budget speech. They walked out wearing flowers in their ears as a mark of protest. The Assembly premises witnessed tense scenes as BRS members raised slogans alleging betrayal, including “Tula bangaram mosam,” “Two lakh jobs mosam,” and “Budget mosam.” They also staged a dharna at the Assembly entrance while continuing their protest. The Finance Minister said the Budget reflects the aspirations of Telangana’s people and assures the upliftment of weaker and marginalized sections. He stated that despite economic challenges, the Budget has been designed in a balanced manner without burdening the common man with taxes, focusing on efficient use of resources and wealth creation for public welfare. He added that the government is guided by the principle that true development lies in uplifting the poor, making this Budget a foundation for rebuilding and progress. The Finance Minister said the Budget is not just about numbers, but about people’s lives and the state’s future. It aims to inspire hope among youth, support the vulnerable, provide housing, improve irrigation and agriculture, create employment, and ensure good governance. He described the Budget as a beacon of hope for Telangana, focused on development, welfare, and fiscal discipline. The government has introduced the Telangana Tourism Policy 2025–2030 to promote comprehensive development of the tourism sector. The policy aims to attract investments, generate employment, and showcase local culture and traditions globally, with proposals exceeding Rs 25,000 crore. Hosting the Miss World event in Hyderabad brought global attention to the city. An allocation of Rs 1,224 crore has been made for the tourism sector in the Budget: FM Hosting the Women’s Hockey World Cup Qualifiers at the Gachibowli GM Balayogi Stadium was a matter of pride for Telangana, with the venue upgraded to international standards. The Indian women’s team also qualified for the World Cup. The government’s new sports policy focuses on identifying talent at the grassroots level. Under this, CM Cup tournaments have been introduced across 40 sports disciplines, including para sports, with cash rewards and advanced training for talented athletes: FM The FM said that youth are key to the state’s future, focusing on skill development and transparent recruitment to enhance employment opportunities. It highlighted initiatives to promote sports, including international exposure, special training for talented students, and grassroots talent identification. Plans are in place to develop Telangana as a sports hub by 2047, with new policies, partnerships, and the establishment of a Young India Physical Education and Sports University: FM The government aims to promote spiritual tourism while improving facilities for devotees. It has launched nine new pilgrimage circuits in collaboration with the Tourism Department, providing accommodation, special darshan, and enhanced travel facilities for pilgrims: FM The government is taking steps to preserve Telangana’s cultural and spiritual heritage by developing major temples like Bhadrachalam, Dharmapuri, Vemulawada, and Kaleshwaram, along with improving facilities for devotees. Preparations are underway to conduct the Godavari Pushkaralu in 2027 on a grand scale, with infrastructure development, crowd management, and modern technology support. An allocation of Rs 500 crore has been made for the Pushkaralu in the Budget: FM The government said it is addressing Naxalism through a socio-economic approach by providing livelihoods, social dignity, and financial security, rather than relying only on force. It noted that a large number of Maoists have surrendered in recent years, reflecting the success of this approach. The Budget allocates Rs 11,907 crore for the Home Department: FM The government is prioritising law and order, with the police delivering strong results in curbing anti-social activities. A special EAGLE unit has been set up to combat drug-related crimes, dismantling illegal factories and strengthening surveillance through checkpoints and CCTV. Special narcotics and forensic labs have been established, along with de-addiction centres and anti-drug committees in educational institutions to raise awareness among youth: FM The government is undertaking a major 55 km Musi River rejuvenation project, with water supply from the Godavari and expansion of sewage treatment infrastructure. The project includes river cleaning, flood control, riverfront development, and public amenities, along with rehabilitation of affected residents. Urban infrastructure works worth over Rs 43,592 crore have been sanctioned, with a significant portion already underway. An allocation of Rs 17,907 crore has been made for municipal administration and urban development in the Budget: FM Hyderabad Metro Rail is currently serving around 5 lakh passengers daily, with plans to expand connectivity to the Old City and develop new corridors under Phase-II. The government has also decided to take over the metro project from L&T, aiming to accelerate expansion to key areas like the Old City, Shamshabad Airport, and HITEC City under future phases: FM The HMDA is implementing several projects to improve urban transport infrastructure, including elevated corridors and road expansions, along with eco-tourism and radial road connectivity projects linking ORR and RRR. Development works are also underway in the Old City, focusing on heritage conservation, Charminar and Laad Bazaar area development, and improved pedestrian facilities: FM The HYDRAA agency was established to protect public assets and manage disasters, reclaiming 45 acres of government land worth around ₹60,000 crore from encroachments. Several lakes have been restored, which are expected to boost development and the lake economy. Measures such as cleaning drains and canals to prevent floods, along with installing CCTV systems for lake protection, are also being undertaken: FM The government said Hyderabad has already earned recognition as one of the most livable cities in India and is being further developed to match global standards through collaborative efforts. It aims to replicate Hyderabad’s growth across other cities in the state, promoting balanced urban development. Drinking water and sewerage services are being expanded up to the Outer Ring Road, with new reservoirs and treatment plants under development. The government has also reduced GHMC’s loan interest burden and allocated Rs 2,654 crore under the H-CITI scheme for urban infrastructure development: FM The government is strengthening the judiciary with a focus on speedy and equal justice, prioritising the development of judicial infrastructure. It is constructing new High Court buildings and judges’ residences at a cost of Rs 2,583 crore, along with approving additional district and civil courts. An allocation of Rs 2,367 crore has been made for the judiciary in the Budget: FM Land acquisition for Warangal Airport has been completed, and construction works will be accelerated, while the master plan for Adilabad Airport is in the final stage. An allocation of Rs 12,789 crore has been made for the transport, roads, and buildings department in the Budget: FM The government has prepared proposals to develop all R&B roads under the Hybrid Annuity Mode (HAM). Along with the construction of the Regional Ring Road around Hyderabad, it has also decided to develop a parallel Regional Ring Rail network: FM The state has 1.82 crore registered vehicles, with tax exemptions provided to 11.75 lakh agricultural and tractor vehicles, and over 1.06 lakh electric vehicles to promote environmental protection. Road safety measures have been strengthened, and digital services like “Sarathi” and “Vahan” are being implemented, with full rollout of Vahan expected within six months: FM The government said it is correcting past mistakes by taking up the Dr. B.R. Ambedkar Pranahita-Chevella project in the erstwhile Adilabad district. It is also undertaking desilting works in major reservoirs to restore water storage capacity, following national guidelines. An allocation of Rs 22,615 crore has been made for the irrigation sector in the Budget: FM The government stated that completing pending irrigation projects has been a top priority since December 2023. It is actively pursuing Telangana’s rightful share of Krishna and Godavari waters through legal and institutional channels, while working to complete several ongoing and inherited irrigation projects across the state: FM The government plans to construct and maintain rural roads under the Hybrid Annuity Mode (HAM), covering 7,450 km across 96 constituencies in the first phase. Under this model, 40% of the cost will be borne by the state and 60% by private concessionaires, to be repaid over 15 years. For the current financial year, 2,980 km of roads are proposed, with Rs 1,372 crore required for payments. An allocation of Rs 33,688 crore has been made for Panchayat Raj and rural development. The government highlighted that MGNREGA has been a crucial employment guarantee scheme, ensuring 100 days of work, reducing migration, and empowering rural women. The FM expressed concern over the Centre replacing it with a new scheme, stating that reduced central funding would burden states and could impact livelihoods, especially for SC, ST, and BC communities who form the majority of beneficiaries. The government emphasised that rural development is key to overall state progress, with a special focus on rural employment and strengthening panchayat roads. It also successfully conducted elections to 12,702 gram panchayats in December 2025, following which Rs 1,597 crore was released as per the 15th Finance Commission. Newly elected sarpanches were provided five days of comprehensive training. Telangana’s handloom and powerloom sectors have earned a distinct identity, with products like Pochampally ikat, Gadwal and Narayanpet sarees, Siddipet Gollabhama sarees, and Warangal durries reflecting the state’s rich heritage. Under the “One Crore Sarees for One Crore Women” scheme, 70 lakh sarees have already been distributed, with the remaining to be delivered soon, receiving positive feedback on quality. An allocation of Rs 258 crore has been made for the handloom sector in the Budget. Efforts are underway to develop the Zaheerabad Industrial Smart City with central support. The state’s exports have reached Rs 1,61,843 crore, ranking 7th nationally, with aerospace and defence sectors playing a major role. Telangana has been recognised as a “Top Achiever” in Ease of Doing Business. The BioAsia summit attracted investment interest worth Rs 1,700 crore, and WE-Hub has supported over 700 women entrepreneurs. An allocation of Rs 3,490 crore has been made for the industries sector: FM The industrial sector contributes Rs 3,04,217 crore to the state’s GSDP. Telangana continues to attract global investments, with a dedicated SPEED department set up to monitor MoUs. Through the RAMP programme, MSMEs—especially women-led enterprises—are being supported, along with special incubation for marginalised groups. The government is also developing new industrial hubs, including in Kodangal, and planning large industrial parks: FM The state’s IT sector continues to grow strongly, with over 1,500 IT/ITES companies and exports reaching Rs 3.13 lakh crore, generating employment for over 9.39 lakh people. The government is promoting investments and job creation through new ICT, electronics, and innovation policies, while expanding IT growth beyond Hyderabad’s western corridor. Hyderabad hosts about 20 percent of India’s Global Capability Centres, with over 70 new GCCs added in 2024–25, including a Google Safety Engineering Centre. Under T-Fiber, high-speed internet connectivity has been extended to thousands of villages and government institutions, with a target to cover 50,000 institutions. An allocation of ₹875 crore has been made for the IT sector in the Budget: FM The government has launched the ‘Rajiv Yuva Vikasam’ scheme to provide financial assistance and promote self-employment among youth from SC, ST, BC, minority, and OC communities, with Rs 6,000 crore allocated. Under the ‘Indiramma Housing’ scheme, Rs 5 lakh assistance is being provided per house, with 4.5 lakh houses sanctioned across constituencies, including additional allocations for tribal areas. An allocation of Rs 7,430 crore has been made for the housing department in the Budget: FM The government is focusing on the welfare and empowerment of Backwards Classes (BCs), who constitute about 56 percent of the state’s population, through skill development and economic support, with Rs 12,511 crore allocated in the Budget. It is also committed to the inclusive development of minorities, promoting economic self-reliance among women by providing 10,000 sewing machines and offering skill training to 4,655 minority youth. An allocation of Rs 3,769 crore has been made for minority welfare: FM The government emphasised that development should be inclusive, ensuring tribal communities progress alongside urban areas. It plans to establish a Central Tribal University in Mulugu, set up special corporations for tribal development, promote ‘GIRI’ branded forest products, and create Adivasi service centres. Efforts are also being made to ensure fair prices for forest produce to improve tribal livelihoods. The Budget allocates Rs 11,784 crore for SC welfare and Rs 7,937 crore for ST welfare: FM The government is working towards an inclusive society by promoting social justice and creating employment opportunities for SCs and STs through education and skill development. It has sanctioned 910 community halls and related facilities with an estimated cost of Rs 368.27 crore. The government is also committed to fully implementing the SC and ST Sub-Plan, including clearing pending allocations by making additional budget provisions. The government is constructing a new Dr. B.R. Ambedkar Knowledge Tower at Lower Tank Bund in Hyderabad. It is also building a new hostel in Nimbol Adda, Kachiguda, named after Babu Jagjivan Ram: FM The government will set up 500 Anganwadi-cum-creche centres to provide childcare and nutrition support for children of working women. It has also sanctioned 37 ‘Pranam’ daycare centres for senior citizens. An allocation of Rs 3,143 crore has been made for women and child welfare in the Budget: FM The government will provide Rs 2 lakh as financial assistance to encourage marriages among differently-abled individuals. It will also set up 274 mobile Anganwadi centres under the ‘Street Nutrition Mission’ to provide additional nutritional support to the urban poor. The government is providing free pre-primary education to around 4 lakh children aged 3–6 through 35,781 Anganwadi centres, along with two sets of uniforms. Under the ‘Bala Bharosa’ scheme, early screening and medical support are being provided to children up to 5 years to detect and address developmental and health issues at an early stage: FM Through TOMCOM, the government has facilitated overseas employment for around 13,930 youth in 16 countries, including the UAE, Germany, Japan, the UK, and Canada. To further strengthen this initiative, the “CM Overseas Employment Programme” will be launched, providing skill training, language support, visa guidance, and travel assistance. An allocation of Rs 998 crore has been made for the Labour Welfare Department in the Budget: FM The government is working to strengthen the workforce by promoting labour welfare, industrial growth, and workplace safety. The “T-GATE” digital platform provides skill development, career guidance, and employment services. Over 1.03 lakh workers have been registered under the Building and Other Construction Workers Welfare Board, with Rs 276.78 crore distributed to 55,594 beneficiaries: FM The government will introduce a cashless health scheme for employees and pensioners, covering them and their dependent family members, benefiting around 23.51 lakh people. The scheme will be implemented through the Rajiv Aarogyasri Trust, covering treatment for 1,998 diseases across government and 421 empanelled private hospitals. A comprehensive insurance scheme has also been introduced, offering accident and life coverage to government employees and pensioners. Additionally, retirement benefits have been announced for Anganwadi staff, providing Rs 2 lakh for teachers and Rs 1 lakh for helpers: FM The Finance Minister said the previous government only announced medical and nursing colleges on paper, while the current government has begun actual construction. He stated that healthcare infrastructure has been significantly expanded, with a sharp increase in hospital beds and further additions planned, taking the total tertiary care beds to over 44,000. The government is also constructing 17 new medical colleges and has already started several medical, nursing, and paramedical colleges, shifting focus towards preventive healthcare. An allocation of Rs 13,679 crore has been made for the health sector in the Budget. The government is setting up the Young India Skill University to address the skill gap and align training with industry needs. It is also establishing 118 Advanced Technology Centres, with trainees receiving a monthly stipend of Rs 2,000: FM The government has established the Young India Skill University to bridge the skill gap and provide industry-relevant training to youth. It is also upgrading ITIs and setting up 118 Advanced Technology Centres, with trainees receiving a Rs 2,000 monthly stipend. All skill institutions will be integrated under this university to boost employment and support long-term economic growth: FM The government will upgrade 57 polytechnic colleges into advanced technology centres and introduce 15 new courses in the 2026–27 academic year to enhance employment and entrepreneurship opportunities for youth. A Dr. Manmohan Singh Earth Sciences University has been established in Bhadradri Kothagudem district, and new professional courses are being introduced through university-affiliated law and engineering colleges. For infrastructure development, Rs 1,000 crore has been allocated to Osmania University and Rs 400 crore to Veeranari Chakali Ilamma Women’s University, with additional funds earmarked for other universities as needed: FM The government has sanctioned new engineering and law colleges under various universities, along with a new RGUKT campus in Mahabubnagar, and upgraded a government polytechnic into an engineering college. It has also established new government degree colleges in several locations, increasing the total number of such colleges in the state to 149: FM The government has decided to modernise kitchens in all hostels and residential educational institutions to address hygiene issues, with ₹100 crore allocated for this purpose in the Budget. The Finance Minister said the government is committed to the welfare and empowerment of students, ensuring disabilities do not hinder their education. He announced that retrofitted motorised vehicles will be provided to differently-abled Intermediate students to support their mobility. The Finance Minister announced another significant reform, stating that the mid-day meal scheme will now be extended to students studying in government junior colleges pursuing Intermediate education. He said this marks a new chapter in the government’s efforts toward student welfare. He further noted that adolescence is a crucial stage, and proper nutrition during this period plays a key role in enhancing learning abilities and ensuring long-term health. Digital health cards will be issued to all citizens in Telangana, data privacy will be maintained: Bhatti The Finance Minister said that 34.37 lakh women and girls are benefiting from free bus travel under the Mahalakshmi scheme. Women in Telangana saved Rs 9,222 crore from free travel under Mahalakshimi Scheme. So far, women in the state have availed 269.68 crore free journeys under this scheme, says Bhatti. The first phase of the Telangana Census will be conducted from May 11, 2026 to June 9, 2026. The self-enumeration process will take place from April 26, 2026 to May 10, 2026. The second phase is scheduled from February 9, 2027 to February 28, 2027, with March 1, 2027 set as the reference date. The Finance Minister said the government has strengthened land administration at the village level. He stated that 8,900 personnel have been appointed, including 5,010 Village Administrative Officers, while 5,520 licensed surveyors are also providing their services. He added that 3,76,000 new Pattadar Passbooks were issued this year. The Finance Minister said the government has implemented the Telangana Bhu Bharati Act, 2025. He added that under the Act, a special ‘Bhudhar’ land identification system has been introduced along with an AI-based ‘Bhu Mitra’ chatbot. The 99-day Praja Palana–Pragati Pranalika programme will continue until June 12, 2026. The programme is being implemented at the village, mandal, constituency, district, and state levels, and covers ten themes including cleanliness and file clearance, health, road safety, welfare, child safety, and anti-drug initiatives. The Finance Minister said the state is facing a heavy debt burden due to excessive borrowings by the previous government. He stressed that fiscal discipline is the foundation of development, warning that borrowing beyond revenue capacity raises concerns about economic sustainability. He added that the previous government’s excessive borrowing placed a severe strain on the state’s finances. The Minister further stated that the repayment period has been extended, with the principal repayment tenure now ranging between 20 and 39 years. He noted that through debt restructuring, the amount payable between 2025–26 and 2031–32 has been reduced from Rs 34,058 crore to Rs 11,915 crore, lowering the state’s cash outflow by Rs 22,142 crore and providing significant liquidity relief. Telangana will launch the ‘Indiramma Family Life Insurance Scheme’ from June 2, 2026. The scheme is aimed at providing life insurance coverage of Rs 5 lakh to each of the 1.15 crore families in the state. The Finance Minister said that Telangana has implemented the Rajiv Civils Abhayahastam Scheme to support civil services aspirants. He added that under this scheme, Singareni Collieries Company provided financial assistance of Rs 1 lakh each from its CSR funds to 202 candidates who appeared for the Civil Services Main Examination this year. The Finance Minister said that Rs 7,072 crore has been secured so far under Centrally Sponsored Schemes (CSS) in the current financial year. He noted that while maintaining cordial relations with the Central Government for the state’s development, the funds received under CSS were Rs 4,826 crore in 2021–22, compared to Rs 7,072 crore secured so far this year. The Finance Minister said the Telangana government has established a Skill University to develop a workforce aligned with international standards. He added that once the construction of Future City is completed, it will stand alongside global cities and emerge as an international tourist destination. Targetting the BRS, Finance Minister said that the previous government did not properly utilise funds received under Centrally Sponsored Schemes (CSS) between 2014 and 2023. Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka presented the 2026–27 Budget with an outlay of Rs 3,24,234 crore, compared to Rs 3,05,000 crore in 2025–26. He also stated that Telangana’s growth rate is improving even as the country’s overall growth slows down. Telangana’s growth rate is improving even as the country’s growth slows down: FM Mallu The Finance Minister said Telangana is taking a historic step with the establishment of “Bharat Future City” over 30,000 acres. He added that with the construction of radial roads, a greenfield national highway directly connecting the city to Machilipatnam Port in Andhra Pradesh, underground power systems, and eco-friendly smart grids, the project will serve as a model of sustainable development. The Budget allocates Rs 2,34,406 crore towards revenue expenditure and Rs 47,267 crore for capital expenditure. The Finance Minister said the per capita income for 2025–26 is Rs 4.18 lakh, registering a growth of 10.2 percent. He noted that the national average per capita income is Rs 2.19 lakh, adding that Telangana’s per capita income is Rs 1.99 lakh higher. He also stated that Telangana aims to become a $1 trillion economy by 2036 and a $3 trillion economy by 2047. The Finance Minister said the government aims to strengthen higher education in the state on par with global institutions such as Stanford. He stated that Telangana’s GSDP for 2025–26 is estimated at Rs 17.84 lakh crore, with a growth rate of 10.7 percent. He added that the state’s growth is 2.7 percent higher than the national average and that Telangana contributes 5 percent to the country’s GDP. The Finance Minister said the government is carefully returning tax revenues to the people. He added that farmers’ welfare, women’s empowerment, skill-based education, and infrastructure development are the key focus areas of the Budget. While maintaining fiscal discipline, the government is also working to fulfill the promises it has made, he said. The Finance Minister said the government is rectifying the mistakes of the previous regime and repaying its debts. He added that record investments have been attracted within two years. “Despite global challenges, we have prepared a budget aimed at serving the people,” he said. Bhatti begins Budget speech, says “Telangana emerging like phoenix from ashes.” BRS Working President K.T. Rama Rao led party MLAs to the Assembly carrying placards, alleging that the Congress government had failed to implement the six guarantees promised during the election campaign. Telangana deputy chief minister and finance minister Mallu Bhatti Vikramarka presented copies of the 2026–27 Budget to Legislative Council Chairman Gutta Sukhender Reddy and Assembly Speaker Gaddam Prasad. TPCC Chief Mahesh Kumar Goud criticises Telangana’s share in Union Budget 2026-27 ahead of state budget BRS MLAs and MLCs staged a protest at Gun Park, demanding legal status for the six guarantees promised by the Congress party. The legislators held placards and planned to demonstrate near the Martyrs’ Memorial. Leaders Harish Rao and KT Rama Rao (KTR), along with other MLAs and MLCs, reached Gun Park. The MLAs are set to march to the Assembly carrying placards. The Telangana State Cabinet, chaired by chief minister Revanth Reddy, convened in the Assembly Committee Hall. During the meeting, the Cabinet approved the state budget for the financial year 2026–27. Governor Shiv Pratap Shukla stated that the Telangana Budget 2026–27 will prioritize inclusive growth. He also noted that the state’s projected GSDP for 2025–26 stands at Rs 17.82 lakh crore, reflecting robust economic growth and stability. Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka arrived at the State Assembly, where he was received by Finance Department Principal Secretary Sandeep Kumar Sultania, Planning and Finance Department Secretary Gaurav Uppal, and other officials. TPCC Chief Mahesh Kumar Goud criticises Telangana’s share in Union Budget 2026-27 ahead of state budget Deputy CM Bhatti Vikramarka offers prayers at Nalla Pochamma Temple ahead of Budget presentation
