Telangana Budget 2025-26 Highlights: Rs 3.04 lakh crore outlay, mega master plan 2050 for industrial growth

In a major initiative to support Self-Help Groups (SHGs) and local artisans, the Telangana government has announced the distribution of two high-quality sarees annually to 64.7 lakh SHG members across the state.

To boost local weavers, the production of these sarees will be exclusively entrusted to Telangana’s weaving community.

Announcing the move, Deputy Chief Minister stated, “In this budget, we are proposing an allocation of Rs 371 crore for the Handlooms sector.”

As part of the Future City initiative, the Telangana government is developing a state-of-the-art AI City spread across 200 acres, aiming to establish it as a global hub for AI innovation and enterprise.

This AI City will host leading multinational corporations, driving advancements in artificial intelligence and technology. In a major boost to the project, Google has committed to setting up an AI-powered Accelerator Center within the AI City, marking a significant milestone in Telangana’s digital transformation.

Announcing the development, Deputy Chief Minister Mallu Bhatti Vikramarka also proposed an allocation of Rs 774 crore for the Information Technology Department to support the initiative.

“We are going to make Warangal an IT hub. The city will be developed as a center for education, medical facilities, and the IT sector. Additionally, Nizamabad and Khammam will be transformed into key centers for agro-based industries and manufacturing,” said Bhatti Vikramarka.

Presenting the state budget, Telangana Finance Minister and Deputy CM Bhatti Vikramarka Mallu outlined the government’s ambitious strategy to elevate Hyderabad into a global city of international standards.

“We are formulating a master plan focused on technological advancement, transportation expansion, infrastructure development, and environmental conservation. As part of this vision, we have launched the Musi Riverfront Development Project to make Hyderabad a pollution-free city,” he announced.

Mega Master Plan 2050: A Roadmap for the Future

Highlighting Telangana’s commitment to modern technology, clean energy, and sustainability, he introduced the ‘Mega Master Plan 2050’. The initiative aims to position the state as a leader in innovation and sustainable development through strategic infrastructure and technological advancements.

The health, medical, and family welfare department has been allocated Rs 12,393 crore in the latest budget, reflecting an 8.06% increase from the previous year’s estimate of Rs 11,393 crore.

Minister Bhatti Vikramarka emphasizedthe government’s commitment to Ambedkar’s ideals while presenting the state budget.

He stated that Telangana is being shaped into a model state for the nation, prioritizing both short-term and long-term interests. Addressing misinformation on social media, he urged citizens to be cautious of false propaganda and emphasized the government’s responsibility to present the facts.

Minister Vikramarka reiterated the state’s focus on development, welfare, and good governance, aligning with Chief Minister Revanth Reddy’s Telangana Rising 2050 initiative. Telangana’s economy, currently valued at 200 billion dollars, aims to expand fivefold to 1,000 billion dollars over the next five years.

Deputy Chief Minister announced a 40% hike in diet charges and a 200% increase in cosmetic charges across gurukuls, welfare hostels, and Kasturba Gandhi Girls’ Schools. The government is also ensuring free electricity for all government educational institutions.

Honoring Telangana’s women, Koti Women’s University has been renamed after the brave warrior Chakali Ailamma. While preserving its heritage, Rs 550 crore has been allocated for new infrastructure.

For the fiscal year 2025-26, the government has earmarked Rs 23,108 crore for the Education Department.

The Telangana government has allocated Rs 21,221 crore for the Energy Department in the 2025-26 budget, prioritizing the completion of the Yadadri Thermal Power Plant by May 2025.

The Telangana government has earmarked Rs 23,373 crore for the irrigation sector in the 2025-26 budget. Pending projects will be categorized into Group A and Group B based on their urgency for prioritized completion.

The Telangana government has earmarked Rs 17,677 crore for the Municipal Administration Department in the 2025-26 budget, prioritizing major infrastructure projects.

Under the HICITI initiative, Rs 7,032 crore has been allocated for the construction of 31 flyovers and 17 underpasses to ease traffic congestion.

The ORR Phase II water supply scheme, with an outlay of Rs 5,942 crore, aims to enhance water distribution across key areas.

A Future City spanning 765 sq km is being developed, with the establishment of the Future City Development Authority to regulate its growth.

Deputy Chief Minister Bhatti Vikramarka emphasized the role of education in social development, stating that it is the key to securing a better future for underprivileged children.

“We are close to realizing Dr. B.R. Ambedkar’s vision for education. Our government has taken a historic step by approving Rs 11,600 crore for 58 Young India Integrated Residential Schools across the state,” he announced. He further assured that at least one such school will be established in every constituency to provide quality education to disadvantaged students.

The Telangana government has earmarked Rs 56,084 crore for implementing its six guarantees. Key allocations include Rs 4,305 crore for the Mahalakshmi scheme, Rs 2,080 crore for Gruha Jyothi, Rs 1,800 crore for Sanna Rice Bonus, Rs 1,143 crore for Rajiv Arogya Sri, Rs 723 crore for the gas cylinder subsidy, and Rs 600 crore for Indiramma Atmiya Bharosa.

Finance Minister Bhatti Vikramarka emphasized the government’s commitment to public welfare under the Rising Telangana vision. He highlighted substantial allocations for medical college construction and reaffirmed the state’s focus on accelerating welfare and development initiatives.

The Telangana government has earmarked Rs 24,439 crore for the agriculture sector to support various schemes, including Rythu Bharosa and Indiramma Abhaya Hastham, aiming to strengthen farmer welfare and rural development.

Women remain the top priority in the Telangana budget. The government has allocated Rs. 5,005 crore in savings through the free travel scheme on Mahalaxmi buses. Additionally, Rs. 433 crore has been set aside for free gas distribution. The government has also decided to allocate Indiramma houses while considering a percentage of job opportunities for women across the state.

The Telangana government has unveiled the 2025-26 budget in the Legislative Assembly. Finance Minister Bhatti Vikramarka and Minister Sridhar Babu are presenting the budget in both the Assembly and the Council.

The Telangana government is likely to allocate a significant budget for the Indiramma Housing Scheme, aiming to construct 20 lakh houses over the next four years. Officials have proposed an expenditure of Rs 37,274 crore for the scheme.

After coming to power, the Revanth Reddy-led Congress government initially presented a Vote on Account Budget in February 2024, covering April to June, due to the Lok Sabha elections. The full 2024-25 budget was introduced on July 25, 2024. Now, for the first time, the government is presenting a full-fledged budget for an entire financial year.

Telangana’s economy has shown consistent expansion, with the state’s Gross State Domestic Product (GSDP) rising by 10.1% in the current financial year. Additionally, per capita income has increased by 9.6% compared to the previous year.

Notably, Telangana’s per capita income growth stands 1.8% higher than the national average, reflecting the state’s strong economic performance and resilience.

The budget emphasizes education, healthcare, agriculture, and welfare, aligning with the government’s vision for a “Rising Telangana.”

In his annual budget speech, Deputy Chief Minister Bhatti Vikramarka emphasized the government’s commitment to making Hyderabad pollution-free through the Musi project. He reiterated the “Rising Telangana” vision, highlighting significant allocations for the construction of medical colleges. Additionally, he announced provisions to promote modern agricultural practices, ensuring sustainable growth in the sector.

“I don’t see a position of power as a status symbol. We do not view governance as a privilege but as a responsibility toward the people. Decades of weakened governance systems have left challenges, and we are committed to rebuilding with a long-term vision,” said Deputy CM Bhatti Vikramarka.

Finance Minister Bhatti Vikramarka has presented the annual budget for 2025-26 in the Telangana Assembly. As he addresses the House, key financial allocations and policy decisions are being unveiled.

Deputy Chief Minister Bhatti Vikramarka is set to present the Congress government’s second full-fledged budget for the 2025-26 financial year today.

As Telangana gears up for its budget presentation, concerns over mounting debt have come into focus. The state faces a significant gap between projected and actual revenue, raising doubts about fiscal stability. From 2015-16 to 2022-23, Telangana and Andhra Pradesh recorded the largest discrepancies between estimated and realized revenue, highlighting ongoing financial challenges.

Ahead of presenting the Telangana Budget 2025-26, Deputy Chief Minister Mallu Bhatti Vikramarka performed a pooja with his family before arriving at the Assembly in Hyderabad on Wednesday, March 19, 2025. Holding the Finance portfolio, he is set to unveil the financial roadmap for the state in the Legislative Assembly.

The Telangana Cabinet has approved the Annual Budget for 2025-26, which will be presented in the Assembly at 11:06 AM.