Telangana Presents ₹3.24 Lakh Crore Budget, Focuses on Growth, Welfare and Fiscal Stability

Hyderabad, March 2026 : Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Friday presented a ₹3.24 lakh crore budget for the financial year 2026–27 in the state Assembly, outlining an ambitious roadmap for economic expansion, welfare initiatives, and fiscal consolidation.

Presenting the third full-fledged budget of the Congress government, Vikramarka proposed a total expenditure of ₹3,24,234 crore. This includes a revenue expenditure of ₹2,34,406 crore and a capital expenditure of ₹47,267 crore, reflecting the government’s emphasis on balancing developmental spending with long-term asset creation. The budget marks an increase from the ₹3.04 lakh crore outlay presented for 2025–26.

Highlighting the state’s economic performance, the finance minister noted that Telangana has continued to outpace national growth trends. The state’s Gross State Domestic Product (GSDP) registered a growth rate of 10.7 per cent during 2025–26, significantly higher than the national growth rate of 8 per cent. At current prices, Telangana’s GSDP stands at ₹17,82,198 crore, accounting for around 5 per cent of India’s GDP.

He pointed out that while India’s growth rate moderated from 9.8 per cent in 2024–25 to 8 per cent, Telangana maintained steady momentum, improving slightly from 10.6 per cent to 10.7 per cent. This consistent performance, he said, positions the state as a key growth engine for the country.

The state’s per capita income also reflects this upward trajectory. Telangana recorded a per capita income of ₹4,18,931 in 2025–26, growing at 10.2 per cent. In comparison, the national per capita income stood at ₹2,19,575 with a growth rate of 6.9 per cent. Vikramarka emphasised that Telangana’s per capita income is nearly 1.9 times higher than the national average, underscoring improved living standards.

Looking ahead, the government has set ambitious long-term economic goals. The state aims to transform its current $200 billion economy into a $1 trillion economy by 2034 and further expand it to $3 trillion by 2047. To achieve this, sector-specific strategies are being developed to boost industrial growth, services, agriculture, and innovation-driven sectors.

Despite these ambitions, the finance minister acknowledged the fiscal challenges inherited from the previous administration. He stated that excessive borrowings in earlier years had placed a significant burden on the state’s finances. To address this, the government undertook debt restructuring measures, refinancing loans worth ₹25,612 crore at lower interest rates.

Additionally, repayment tenures were extended to between 20 and 39 years, easing the immediate financial burden. As a result, the state’s repayment obligations between 2025–26 and 2031–32 have been reduced from ₹34,058 crore to ₹11,915 crore. This restructuring has lowered cash outflows by ₹22,142 crore, providing much-needed liquidity relief and fiscal space for developmental spending.

Vikramarka described Telangana’s economic journey as one of resilience, stating that the state is “rising like a phoenix” despite financial pressures. He emphasised that the budget has been carefully designed to promote sustainable and inclusive growth.

Key focus areas include farmer welfare, women’s empowerment, employment generation for youth, skill-based education, healthcare, nutrition for students, and infrastructure development. The government aims to ensure that growth translates into tangible benefits for all sections of society.

Overall, the budget reflects a dual strategy—maintaining high growth while strengthening fiscal discipline. With strong economic indicators and a clear long-term vision, Telangana is positioning itself as one of India’s leading states in development and economic transformation.