Telangana unveils Rs 3.24L cr budget for 2026-27; focuses infra, welfare, poll promises

The Telangana government unveiled on Friday (March 20) a budget amounting to Rs 3.24 lakh crore for the fiscal year 2026-27, reflecting an increase of nearly Rs 20,000 crore compared to the prior year.

The budget emphasises key initiatives, including the beautification of the Musi Riverfront and the development of Hyderabad Metrorail Phases 2 and 3, in addition to the commitment to fulfil electoral promises.

Funds allocated to poll guarantees

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, who presented the policy document, allocated Rs 50,713 crore to the Congress government's six poll 'guarantees', including 'Rythu Bharosa' investment support scheme for farmers (Rs 18,000 crore).

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He additionally revealed multiple new initiatives, which encompass a life insurance coverage of Rs five lakh for all 1.15 crore families within the state, with a budget allocation of Rs 4,000 crore, as well as a midday meal programme for Intermediate (11th and 12th grade) students, projected to cost Rs 100 crore.

Vikramarka said the revenue expenditure was pegged at Rs 2,34,406 crore, and capital expenditure at Rs 47,267 crore.

The government granted Rs 23,179 crore to the agriculture sector, followed by energy at Rs 21,285 crore.

The minister proposed an allocation of Rs 17,907 crore for the state's municipal administration and urban development department and set aside Rs 13,679 crore for the medical and health department.

Under the 'Cheyutha' social security pensions scheme, two lakh new pensions would be sanctioned to eligible beneficiaries, and Rs 14,861 crore has been set aside for this purpose.

The budget has proposed upgrading select government schools into Telangana public schools with modern infrastructure, trained teachers, digital facilities, and dedicated transport systems and Rs 500 crore was allocated for this initiative.

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Each school will provide education from pre-primary to Class 12 for about 1,500 students.

The budget also announced a cashless health protection scheme for employees, pensioners, and their dependent family members, covering approximately 23.51 lakh people.

For employee safety, a comprehensive accident insurance scheme was unveiled.

To create international employment opportunities for youth, the government would launch the CM Overseas Employment Programme with a budgetary allocation of Rs 1,056 crore.

The government will provide skill training in various sectors, language training relevant to destination countries, visa guidance and others, under the initiative.

'Budget to fulfil hopes'

“This Budget is a charter of resolve to fulfil the hopes and aspirations of the people of Telangana. We have designed it to reflect the comprehensive development of the State. We are governing in adherence to constitutional values and with transparency. We do not lie for applause. This government works on the foundation of facts,” Vikramarka said.

The other major allocations include panchayati raj and rural development (Rs 33,688 crore), irrigation (Rs 22,615 crore), SC welfare (Rs 11,784 crore) and ST welfare (Rs 7,937 crore). The state government projected a fiscal deficit of Rs 58,458.71 crore along with a revenue surplus of Rs 6,857.76 crore for the 2026-27 fiscal year.

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The Congress government is expected to raise Rs 73,383.60 through market borrowings.

The total revenue receipts for the year 2026-27 stood at Rs 2,41,263.58 crore. The total public debt under FRBM is pegged at Rs 5.62 lakh crore, which is 29 per cent of the GSDP.

Opposition slams budget

The opposition Bharat Rashtra Samithi (BRS) and Bharatiya Janata Party (BJP) alleged that the budget failed to meet the people's expectations.

BRS members, who held a protest in the legislature premises, alleged that the government deceived people over its promises of providing two lakh jobs and one tola gold (over 11 grams).

(With agency inputs)