Telangana Bets Big on Welfare and Growth with ₹3.24 Lakh Crore Budget

The Congress government on Friday presented a massive ₹3,24,234 crore Annual Budget for 2026–27 in the State Legislative Assembly, aiming to accelerate Telangana’s economy and reflect public aspirations. Compared to last year, the budget outlay has increased by around ₹20,000 crore . Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka said the budget is not merely a play of numbers but a development plan built on real foundations .

The budget estimates include ₹2,34,406 crore as revenue expenditure and ₹47,267 crore as capital expenditure , with a revenue surplus of ₹6,857.76 crore and a fiscal deficit of ₹58,458.71 crore . The State’s total debt stands at ₹5.62 lakh crore , accounting for 29% of GSDP . A substantial ₹50,713 crore has been allocated for implementing the six guarantees promised during elections. The government has earmarked ₹4,000 crore to provide ₹5 lakh life insurance to 1.15 crore families under the Indiramma Family Life Insurance Scheme, to be launched from June 2.

Among major announcements, the government introduced midday meals for Intermediate students , extended breakfast facilities from pre-primary to Intermediate levels, and announced a cashless health protection scheme with digital health cards for government employees and pensioners. Students in ITIs and ATCs will receive a ₹2,000 monthly stipend , while proposals for ₹73,383 crore in new borrowings have been made.

Key sectoral allocations include ₹33,688 crore for Panchayat Raj and Rural Development, ₹17,907 crore for Urban Development, ₹22,615 crore for Irrigation, ₹23,179 crore for Agriculture, ₹21,285 crore for Power, ₹26,674 crore for Education, and ₹13,679 crore for Health. Welfare allocations include ₹11,784 crore for SC welfare, ₹12,511 crore for BC welfare, ₹7,934 crore for ST welfare, and ₹3,769 crore for Minority welfare. Major schemes include ₹14,861 crore for Cheyutha, ₹18,000 crore for Rythu Bharosa, and ₹5,500 crore for Indiramma Housing.

In the education sector, the government allocated ₹26,674 crore , introducing several landmark measures . The midday meal scheme, earlier limited to school students, will now be extended to Intermediate students in government junior colleges , with ₹100 crore earmarked. Government schools will be upgraded to international standards with an allocation of ₹500 crore , along with digital education and transport facilities for up to 1,500 students per school . An amount of ₹1,056 crore has been set aside to support overseas employment training and visa guidance for youth, while special motorised vehicles will be provided to differently-abled Intermediate students. The government also allocated ₹1,000 crore to Osmania University and ₹400 crore to Veeranari Chakali Ilamma Women’s University .

For youth and skill development, ₹6,000 crore has been allocated under the Rajiv Yuva Vikas programme, with trainees in 118 Advanced Technology Centres receiving a ₹2,000 monthly stipend . A cashless health protection scheme has been announced for about 23.51 lakh government employees and pensioners, providing ₹1.2 crore compensation for death during duty, ₹10 lakh for natural death, and up to ₹2 crore in case of air accidents, with an allocation of ₹1,056 crore.

Opposition parties, including BRS and BJP, criticised the budget, alleging it failed to meet public expectations and lacked clarity on promises such as filling 2 lakh jobs and providing gold for girl children, accusing the government of misleading people with figures.

Bhatti Vikramarka stated that the State’s GSDP grew by 10.7% to ₹17,82,198 crore , while per capita income increased by 10.2% to ₹4,18,931 . The government plans to mobilise ₹73,383 crore through market borrowings and emphasised rural employment and infrastructure, noting that elections were successfully conducted in 12,702 Gram Panchayats in December 2025, leading to the release of ₹1,597 crore under the 15th Finance Commission recommendations. “ This budget is a resolve document that fulfills the aspirations of Telangana people. We do not make false promises for applause; we deliver transparent governance based on facts, ” he said.

In the previous 2025–26 budget, the total outlay was ₹3,04,965 crore , with ₹2,26,982 crore as revenue expenditure and ₹36,504 crore as capital expenditure , while the State debt stood at ₹5,04,814 crore .