Telangana budget 2026-27 pegged at Rs 3.24 lakh crore; welfare, housing, irrigation get major share

Telangana Finance Minister Mallu Bhatti Vikramarka presented the 2026–27 State Budget with a total outlay of Rs 3.24 lakh crore, focusing on welfare, infrastructure, housing, youth, education, and social justice, while maintaining fiscal discipline amid strong GSDP growth

Hyderabad: Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Friday presented the State Budget for 2026-27 in the Assembly, proposing a total outlay of Rs.3,24,234 crore, with revenue expenditure of Rs.2,34,406 crore and capital expenditure of Rs.47,267 crore. He said the government had balanced welfare commitments with fiscal discipline in the latest budget.

Presenting the Budget, Bhatti Vikramarka said the government had prepared it despite financial pressures, ensuring that welfare and development programmes continue without imposing additional burden on people. The budget focused on welfare schemes, housing, irrigation, social justice and infrastructure, while also announcing new initiatives for youth, education and family security.

---

Among key sectoral allocations, the government proposed Rs 22,615 crore for Irrigation, Rs 17,907 crore for Municipal Administration and Urban Development, Rs 12,789 crore for Transport, Roads and Buildings, and Rs 11,907 crore for the Home Department.

For social welfare, the budget earmarked Rs 11,784 crore for Scheduled Castes, Rs 7,937 crore for Scheduled Tribes, Rs 12,511 crore for Backward Classes, and Rs 3,769 crore for Minorities welfare.

Housing received Rs 7,430 crore, with the government continuing the Indiramma Illu scheme that provides financial assistance of Rs 5 lakh per house to poor families.

A major announcement was the Indiramma Family Life Insurance Scheme, under which life insurance of Rs 5 lakh will be provided to 1.15 crore families from June 2026. The government also allocated Rs 6,000 crore for the Rajiv Yuva Vikasam scheme to provide financial assistance to youth from SC, ST, BC, minority and other communities to promote self-employment.

In education, the Budget announced extension of the midday meal scheme to Intermediate students, modernisation of hostel kitchens with Rs 100 crore, and infrastructure support including Rs 1,000 crore for Osmania University.

The government proposed Rs 500 crore for Godavari Pushkaralu-2027, Rs 1,224 crore for tourism, Rs 3,490 crore for industries and Rs 3,143 crore for women and child welfare.

Earlier, Bhatti Vikramarka stated that in the financial year 2025–26, Telangana’s Gross State Domestic Product (GSDP), at current prices, was pegged at Rs 17,82,198 crore recording growth rate of 10.7 per cent over previous fiscal. During the same period, the country’s GDP growth rate recorded at 8 per cent. Further, the State’s GSDP accounted for five per cent of the national GDP, making Telangana a strong growth engine for the country.

During the last fiscal, the State’s per capita income (at current prices) stood at Rs 4,18,931, with a growth rate of 10.2 per cent. The national per capita income stood at Rs 2,19,575, while the growth rate was only 6.9 per cent. Compared to the national per capita income, Telangana’s per capita income is higher by Rs 1,99,356 which is 1.9 times higher.