Wed Mar 19 08:10:00 UTC 2025: ## Telangana Unveils ₹3.04 Lakh Crore Budget, Prioritizing Welfare Schemes

**Hyderabad, March 19, 2025** – The Telangana government presented a ₹3.04 lakh crore budget for the 2025-26 fiscal year, marking the first time the state’s budget has crossed the ₹3 lakh crore mark since its formation. The budget, presented by Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, includes ₹2.26 lakh crore for revenue expenditure and ₹36,504 crore for capital expenditure. This represents a 5% increase over the current year’s budget.

Despite the significant increase, the budget reveals the state’s continued reliance on borrowings, estimated at nearly ₹70,000 crore, including ₹64,539 crore in open market borrowings. The budget projects a surplus of ₹2,738 crore but a fiscal deficit of ₹54,009 crore, primarily due to borrowings. The primary deficit is pegged at ₹34,640 crore.

Significant allocations have been made to key sectors: agriculture (₹24,439 crore), panchayat raj (₹31,605 crore), and education (₹23,108 crore). However, the largest allocations went to welfare schemes for backward classes, scheduled castes, and scheduled tribes, totaling nearly ₹69,000 crore. The six guarantees promised by the Congress party received a combined allocation of ₹56,084 crore.

Other notable allocations include ₹18,000 crore for Rythu Bharosa, ₹14,861 crore for Cheyutha, ₹12,571 crore for Indiramma houses, and ₹4,305 crore for the Mahalakshmi scheme providing free bus travel to women. The budget also earmarked ₹6,000 crore for Rajiv Yuva Vikasam, ₹4,452 crore for scholarships/stipends, and ₹11,500 crore for power subsidies.

The state projects revenue receipts of ₹2.29 lakh crore, with state taxes and duties contributing ₹1.45 lakh crore. Development expenditure is estimated at ₹1.79 lakh crore, and debt servicing at ₹19,370 crore. The Energy department received ₹21,221 crore, with a focus on completing the Yadadri Thermal Power Plant and launching a new electricity ambulance service.

The budget projects a Gross State Domestic Product (GSDP) at constant prices of ₹16.12 lakh crore, with a 10.1% growth rate, and a per capita income at current prices of ₹3.79 lakh, significantly higher than the national average. Mr. Vikramarka stated that the budget aims to distribute resources equitably and build a more egalitarian society.

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