In Hyderabad, on March 20, the Telangana government presented a budget of Rs 3.24 trillion for the fiscal year 2026-27, an increase of nearly Rs 20,000 crore over the previous year. This budget prioritizes key programs such as the beautification of the Musi Riverfront and Phase 2 and 3 of the Hyderabad Metro Rail, as well as fulfilling election promises.
During the budget presentation in the assembly, Deputy Chief Minister Mallu Bhatti Vikramarka allocated Rs 50,713 crore to the Congress government's six key election pledges, including the "Rythu Bharosa" investment support scheme for farmers (Rs 18,000 crore).
He also announced several new schemes, including a life insurance coverage of Rs 5 lakh for all 1.15 crore families in the state, with an outlay of Rs 4,000 crore, and a midday meal scheme for Intermediate (11th and 12th grade) students, with an estimated expenditure of Rs 100 crore.
Vikramarka, who holds the finance portfolio, stated that the revenue expenditure would be Rs 2,34,406 crore and the capital expenditure would be Rs 47,267 crore.
The government allocated 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 Municipal Administration and Urban Development Department and set aside Rs 13,679 crore for the Medical and Health Department.
Under the "Cheyutha" social security pension scheme, two lakh new pensions would be provided to eligible beneficiaries, with an allocation of Rs 14,861 crore.
The budget proposes upgrading select government schools into Telangana Public Schools, with modern infrastructure, trained teachers, digital facilities, and dedicated transport systems, with an allocation of Rs 500 crore.
Each school will provide education from pre-primary to Class 12 for about 1,500 students.
In addition, the budget announced a cashless health protection scheme for employees, pensioners, and their dependent family members, covering approximately 23.51 lakh people.
A comprehensive accident insurance scheme was also announced for employee safety.
Under the scheme, compensation of Rs 1.2 crore would be provided in case of accidental death, and Rs 10 lakh term life insurance coverage would be available up to the age of 60. An additional Rs 2 crore coverage would be provided in case of death due to an air accident.
This scheme will cover 7.57 lakh government employees and pensioners. A combined budget allocation of Rs 1,056 crore has been proposed for the health and insurance schemes.
To create international employment opportunities for youth, the government will 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 other services under this initiative.
"This budget represents a commitment to fulfill the hopes and aspirations of the people of Telangana. It is designed to reflect the comprehensive development of the state. We are governing in accordance with constitutional values and with transparency. We do not make false promises for applause. This government is based on facts," Vikramarka said.
Other major allocations include Panchayat 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 projects a fiscal deficit of Rs 58,458.71 crore, along with a revenue surplus of Rs 6,857.76 crore for the fiscal year 2026-27.
The Congress government is expected to raise Rs 73,383.60 through market borrowings.
The total revenue receipts for the year 2026-27 stand 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.
In 2025–26, Telangana’s Gross State Domestic Product (GSDP), at current prices, is Rs 17,82,198 crore compared to the previous year, with a growth rate of 10.7 per cent.
In the financial year 2025–26, at current prices, the State’s per capita income stood at Rs 4,18,931, with a growth rate of 10.2 per cent, Deputy Chief Minister Vikramarka said.
The opposition BRS and BJP have criticized the budget, alleging that it fails to meet the people's expectations.
BRS members, who staged a protest in the legislature premises, accused the government of misleading people regarding its promises of providing two lakh jobs and one tola of gold (over 11 grams).