State Budget 2026-27 With Rs 3.24 Lakh Crore Outlay

Deputy Chief Minister and Finance Minister Bhatti Vikramarka today unveiled the Telangana Budget for the 2026-27 fiscal year in the Assembly.

The proposed budget outlines a total expenditure of Rs 3,24,234 crore, comprising Rs 2,34,406 crore for revenue expenditure and Rs 47,267 crore for capital expenditure.

Vikramarka said that the budget struck a balance between the government's welfare commitments and the imperative of fiscal discipline.

Presenting the budget, he acknowledged prevailing financial pressures but assured the House that its preparation ensured the uninterrupted continuation of welfare and development programs without imposing additional financial strain on the populace.

The budget's strategic focus included welfare initiatives, housing, irrigation, social justice and infrastructure development, along with a new program aimed at supporting youth, education and family security, he said.

Key sectoral allocations include:

Rs 33,688 crore for the panchayat raj and rural development department
Rs 26,674 crore for education
Rs 22,615 crore for irrigation
Rs 21,285 crore for the energy department
Rs 17,907 crore for municipal administration and urban development
Rs 13,679 crore for medical and health
Rs 12,789 crore for the roads and buildings (R&B) department
Rs 11,907 crore for the home department
Rs 11,784 crore for SC welfare
Rs 7,937 crore for ST welfare
Rs 7,430 crore for housing
Rs 1,529 crore for animal husbandry
Rs 3,769 crore for BC welfare
Rs 3,769 crore for minorities' welfare
Rs 3,490 crore for industries
Rs 3,143 crore for the women and child welfare department
Rs 998 crore for the labour department
Rs 875 crore for IT
Rs 258 crore for the handloom sector

A notable announcement is the introduction of the Indiramma Family Life Insurance scheme, which will provide a life insurance cover of Rs 5 lakh to 1.15 crore families from June 2026. The government has also earmarked Rs 6,000 crore for the Rajiv Yuva Vikasam scheme to support self-employment among youth from the SC/STs, BCs and minority communities.

In the education sector, the budget proposes extending the mid-day meal scheme to Intermediate students, modernising hostel kitchens with an allocation of Rs 100 crore, and enhancing infrastructure, including Rs 1,000 crore for Osmania University.

Earlier, the Deputy CM had said that for the financial year 2025-26, Telangana's Gross State Domestic Product (GSDP) at current prices was estimated at Rs 17,82,198 crore, reflecting a growth rate of 10.7% compared to the previous fiscal year. This exceeded the national GDP growth rate of 8% during the same period, and the State's GSDP accounted for 5% of the national GDP, he claimed.