Telangana Finance Minister Mallu Bhatti Vikramarka presented the state budget for 2025-26 in the assembly on Wednesday, proposing a total expenditure of ₹3.04 lakh crore. The budget focuses on welfare schemes, industrial growth, and economic stability, with the announcement of a “Mega Master Plan 2050” to decentralize industrial development across the state.
The proposed expenditure includes ₹2,26,982 crore for revenue expenses and ₹36,504 crore for capital outlay, with the remaining amount allocated for loan repayments and other financial obligations. The fiscal deficit is projected at 3% of the Gross State Domestic Product (GSDP) of ₹17,96,491 crore, while the state expects a revenue surplus of ₹2,738 crore. Public debt is estimated to rise to ₹5,04,814 crore, accounting for 28.1% of the GSDP.
The finance minister emphasized that the budget is designed for equitable resource distribution and aims to build an inclusive system free from inequalities. A key highlight is the “Mega Master Plan 2050,” which seeks to expand industrial growth beyond Hyderabad, ensuring balanced economic development. The plan includes setting up sector-specific industrial clusters in IT, pharmaceuticals, healthcare, food processing, sports, automobiles, garments, metalware, handlooms, and jewelry manufacturing. Additionally, a state-of-the-art AI city is being developed across 200 acres to position Telangana as a global hub for artificial intelligence innovation.
The government reaffirmed its commitment to implementing its six poll guarantees, which include schemes such as Rythu Bharosa, Mahalakshmi, Gruha Jyothi, Indiramma Indlu, Yuva Vikasam, and Cheyutha. The budget allocates ₹40,232 crore for the welfare of Scheduled Castes (SCs), ₹17,169 crore for Scheduled Tribes (STs), ₹23,108 crore for education, ₹24,439 crore for agriculture, ₹31,605 crore for panchayati raj and rural development, ₹12,393 crore for healthcare, and ₹21,221 crore for the energy sector.
Chief Minister A. Revanth Reddy hailed the budget as a “people’s budget,” emphasizing its focus on welfare and economic growth. However, Telangana BJP president and Union Minister G. Kishan Reddy criticized it, calling it an “insult to the people” and accusing the Congress government of misleading the public with unrealistic figures. He alleged that the government had failed to implement its promises and was prioritizing liquor sales for revenue generation instead of addressing key public concerns.
Despite the political differences, the Telangana government maintains that the budget lays the foundation for equitable growth, economic stability, and long-term development across the state.
