Mallu Bhatti Vikramarka presents ₹3.2 lakh crore Telangana budget
HYDERABAD: Telangana deputy chief minister and finance minister Mallu Bhatti Vikramarka on Friday presented the 2026–27 state budget in the Assembly, proposing an outlay of ₹3,24,234 crore. He said the government’s goal is to deliver social and economic justice to every citizen.
The minister said the government was following the ideals of B.R. Ambedkar in governance. In the Legislative Council, minister Uttam Kumar Reddy introduced the budget.
Budget size and fiscal components
The total expenditure proposed is ₹3,24,234 crore. Revenue expenditure is pegged at ₹2,34,406 crore, while capital expenditure stands at ₹47,267 crore. The government also proposed fresh borrowings of ₹73,383 crore.
Key welfare and sectoral allocations
The government announced the Indiramma family life insurance scheme, offering ₹5 lakh cover to 1.15 crore families. The scheme will be implemented from June 2, 2026, with a budget provision of ₹4,000 crore.
A midday meal scheme for Intermediate students was announced. Students in Industrial Training Institutes and Advanced Technology Centres will receive a monthly stipend of ₹2,000.
Sector-wise allocations include ₹23,179 crore for agriculture, ₹21,285 crore for energy, ₹7,366 crore for civil supplies, ₹26,674 crore for education, ₹19,679 crore for health, ₹3,143 crore for women and child welfare, and ₹1,224 crore for tourism.
The budget proposes ₹11,784 crore for Scheduled Castes welfare, ₹7,934 crore for Scheduled Tribes welfare, ₹12,511 crore for Backward Classes welfare, and ₹3,769 crore for minorities welfare.
Economic outlook and growth targets
The minister said the state’s Gross State Domestic Product for 2025–26 at current prices is estimated at ₹17,82,198 crore, registering a growth rate of 10.7%. Telangana’s growth rate remains higher than the national average, he said.
The government set a target of transforming the state into a $1 trillion economy by 2034 and a $3 trillion economy by 2047.
Urban reforms and infrastructure plans
The government proposed restructuring the Greater Hyderabad Municipal Corporation area into three civic bodies Greater Hyderabad, Cyberabad and Malkajgiri to improve governance and service delivery.
Police administration in the Hyderabad metropolitan region has been reorganised into four commissionerates: Hyderabad, Cyberabad, Malkajgiri and Future City.
The government plans to develop Bharat Future City over 30,000 acres with radial road connectivity, greenfield highway access to Machilipatnam port, underground power systems and smart grids.
Education, employment and skill initiatives
The budget proposes Young India Integrated Residential Schools in all Assembly constituencies. A breakfast scheme for students from pre-primary to Intermediate level will begin in the 2026–27 academic year.
The government has upgraded 65 Industrial Training Institutes into Advanced Technology Centres and plans to provide a ₹2,000 monthly scholarship to trainees.
It said 67,763 appointment letters were issued to unemployed youth after restructuring the Telangana Public Service Commission.
Health and social security measures
New medical colleges, nursing colleges and paramedical institutions are being established to expand healthcare capacity. The government also plans digital health cards for citizens and a cashless health insurance scheme for government employees and pensioners.
For women, schemes include free bus travel, subsidised ₹500 LPG cylinders and free electricity up to 200 units for eligible households.
Agriculture and rural development focus
The government will continue the Rythu Bharosa scheme, providing ₹12,000 per acre annually. Incentives of ₹500 per quintal will be paid for fine paddy procurement.
Plans include expansion of micro-irrigation, promotion of oil palm cultivation and strengthening of food processing and eco-tourism in rural areas.
The budget allocates ₹22,615 crore for irrigation projects and ₹33,688 crore for panchayat raj and rural development.
Industrial growth and investment promotion
The government said over 100 MoUs signed during the Telangana Rising Global Summit could bring investments of about ₹5,75,000 crore. The state also aims to expand Global Capability Centres and manufacturing hubs around Hyderabad.
Exports from Telangana have reached ₹1,61,843 crore, with aerospace and defence sectors accounting for nearly 30% of shipments.
Transport, housing and urban development
The government plans rural road construction under the Hybrid Annuity Mode and expansion of Hyderabad Metro corridors. It also proposed new airports at Warangal and Adilabad.
Under the Indiramma housing scheme, ₹5 lakh assistance will be provided per unit, with 4.5 lakh houses sanctioned.
Urban development initiatives include Musi river rejuvenation, elevated corridors and improved water and sewerage infrastructure.
Law and order, welfare and tourism initiatives
The government set up a special anti-drug task force and rehabilitation measures for former extremists. Tourism policy 2025–30 aims to attract over ₹25,000 crore in investments.
Preparations are underway for Godavari Pushkaralu 2027, with ₹500 crore proposed for infrastructure and event management.
Presenting the estimates, the minister said the budget balanced welfare spending and fiscal discipline without increasing tax burdens. He urged the Assembly to approve the proposals, describing the budget as a blueprint for inclusive development.
