Telangana Congress government presents Rs 3.04 lakh crore Budget for 2025-26

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka tabled the budget in the State Assembly, with emphasis on economic growth and welfare initiatives

Hyderabad: The Telangana government on Wednesday presented a Rs 3,04,965 crore Budget for the financial year 2025-26, marking an increase of Rs 13,806 crore from the previous year’s Rs 2.91 lakh crore.

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka tabled the Budget in the State Assembly, with promises to focus on economic growth, social welfare and infrastructure development, while aiming to transform Telangana into a trillion-dollar economy by 2050.

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The Budget estimates total revenue receipts at Rs 2,29,720 crore and capital receipts at Rs 74,646 crore. This is marginally higher that the previous fiscal (2024-25) with revenue expenditure at Rs 2,20,944 crore and capital expenditure at Rs 33,486.5 crore. While revenue expenditure is pegged at Rs 2,26,982 crore, the capital expenditure is estimated around Rs 36,504 crore.

The State has recorded a revenue surplus of Rs 2,738 crore, while the fiscal deficit stands at a staggering Rs 54,009 crore. The government plans to borrow a massive Rs 69,639 crore in public debt, including loans from open market, the Central government and other sources financing developmental projects. Against budget estimates of Rs 2,91,059 crore for 2024-25, the revised budget estimates are pegged at Rs 2,65,934.51 crore.

Bhatti Vikrarmarka indicated that the Gross State Domestic Product (GSDP) of Telangana at current prices stands at Rs.16.12 lakh crore for 2024-25, reflecting a 10.1 per cent growth rate, surpassing the national GDP growth of 9.9 per cent. The State’s per capita income stands at Rs 3,79,751, nearly 1.8 times higher than the national average of Rs 2,05,579.

In his budget presentation, the Finance Minister continued the demand for a fair share of central tax devolution while advocating reforms in State funding allocations to ensure greater financial stability and sustainable growth.

The service sector remains the largest contributor to the state economy at 66.3 per cent, followed by agriculture at 17.3 per cent and industry at 16.4 per cent. While agriculture and allied sectors employs 42.7 per cent of the workforce, the government aims to expand the industrial sector which employs 22.5 per cent of the workforce through the ‘China+1’ strategy to boost manufacturing and exports in key sectors such as pharmaceuticals, biotechnology, electric vehicles and renewable energy. The service sector accounts for 34.8 per cent of the workforce.

Telangana’s economic growth remains strong, with the Gross State Domestic Product (GSDP) for 2024-25 recorded at Rs 16.12 lakh crore, reflecting a growth rate of 10.1 per cent, surpassing the national GDP growth of 9.9 per cent. The State’s per capita income stands at Rs 3,79,751, nearly 1.8 times higher than the national average of Rs 2,05,579. The service sector remains the largest contributor to Telangana’s economy at 66.3 per cent, followed by agriculture and allied sector at 17.3 per cent and industry at 16.4 per cent.

The State’s labour force participation rate stands at 68.7 per cent, exceeding the national average of 64.3 per cent, with female workforce participation at 52.7 per cent, compared to the national figure of 45.2 per cent. Agriculture employs 42.7 per cent of the workforce, while the industrial sector provides employment to 22.5 per cent. The service sector accounts for 34.8 per cent of the workforce.

The government also unveiled long-term plans under ‘Telangana Rising 2050,’ aiming to transform the State into a trillion-dollar economy. Key projects include the Musi Riverfront Development and renewable energy initiatives to promote sustainable growth.

 

Revenue & Expenditure Overview for 2025-26

Budget estimates
Total revenue receipts: Rs 2,29,720 cr

Capital receipts: Rs 74,646 cr

Revenue expenditure: Rs 2,26,982 cr

Capital expenditure: Rs 36,504 cr

Revenue surplus: Rs 2,738 cr

Fiscal deficit: Rs 54,009 cr

Loans and borrowings: Rs 69,639 cr