Telangana Presents Rs 3.24 Lakh Crore Budget Focusing On Overall Welfare And Growth
Telangana’s per capita income has reached Rs 4.18 lakh, nearly 1.9 times the national average, suggesting improved living standards and economic strength.
Published : March 20, 2026 at 2:50 PM IST
|Updated : March 20, 2026 at 9:49 PM IST
Hyderabad: The Telangana government on Friday presented its annual budget for 2026-27, with a total outlay of Rs 3,24,234 crore, marking an increase of nearly Rs 20,000 crore over last year’s Rs 3.04 lakh crore budget.
Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka tabled the budget in the Legislative Assembly, while Uttam Kumar Reddy presented it in the Legislative Council.
The Finance Minister said the budget aims to ensure social and economic justice for every citizen and reflects governance in line with the ideals of Dr BR Ambedkar. Calling it a “charter of resolve”, he said the government is focused on fulfilling people’s aspirations through transparent and fact-based governance.
Budget Structure
- Total Budget Outlay: Rs 3,24,234 crore
- Revenue Expenditure: Rs 2,34,406 crore
- Capital Expenditure: Rs 47,267 crore
Economic Snapshot
Telangana’s Gross State Domestic Product (GSDP) stood at Rs 17,82,198 crore in 2025-26, with a growth rate of 10.7 per cent, higher than the national average of 8 per cent. Telangana contributes about 5 per cent to the national GDP.
The state’s per capita income reached Rs 4,18,931, growing at 10.2 per cent, nearly 1.9 times the national average.
The government has set an ambitious target to transform Telangana into a one trillion US dollar economy by 2034 and a 3 trillion US dollar economy by 2047, with sector-wise plans being prepared.
Key Highlights Of The Budget Speech
Insurance and Social Security
Life insurance coverage of Rs 5 lakh for 1.15 crore families; Rs 4,000 crore allocated for the Indiramma Family Life Insurance Scheme, to be launched from June 2.
Education and Student Welfare
Announcement of the Mid-Day Meal Scheme for Intermediate students.
Healthcare and Employee Benefits
Cashless health security scheme for government employees and pensioners, along with digital health cards.
Skill Development Support
Monthly scholarship of Rs 2,000 for students studying in ITIs and ATCs.
Borrowings and Financial Planning
Proposal for new loans amounting to Rs 73,383 crore.
Agriculture and Energy Allocation
Rs 23,179 crore allocated to Agriculture, followed by Rs 21,285 crore for Energy.
Urban Development
Rs 17,907 crore allocated for Municipal Administration and Urban Development.
Food and Civil Supplies
Rs 7,366 crore for the Civil Supplies Department.
Animal Husbandry
Rs 1,529 crore for Animal Husbandry.
Education Sector Allocation
Rs 26,674 crore for Education.
Health Sector Allocation
Rs 13,679 crore for Health.
Labour Welfare
Rs 998 crore for Labour.
Women and Child Welfare
Rs 3,143 crore for Women and Child Welfare.
Tourism Development
Rs 1,224 crore for Tourism.
Social Justice and Welfare
- SC Welfare: Rs 11,784 crore
- ST Welfare: Rs 7,934 crore
- BC Welfare: Rs 12,511 crore
- Minority Welfare: Rs 3,769 crore
Marriage and Scholarship Schemes
- Kalyana Lakshmi Scheme: Rs 3,683 crore
- Rs 4,343 crore for Scholarships
- Rs 5,000 crore for Young India Schools
Urban Infrastructure Projects
Musi Riverfront Development: Rs 1,500 crore
Metro Expansion
Metro Rail Phase-2 and Phase-3 expansion prioritised; Rs 600 crore allocated
Higher Education Boost
Rs 1,000 crore for Osmania University
Subsidy and Health Schemes
Mahalakshmi Gas Subsidy Scheme: Rs 723 crore
Rajiv Aarogyasri: Rs 1,143 crore
Rs 2,080 crore for Gruha Jyothi Scheme
Agriculture Incentives
Bonus for Agricultural Produce: Rs 3,500 crore
Flagship Welfare Schemes
- Mahalakshmi Scheme: Rs 4,305 crore
- Indiramma Houses: Rs 5,500 crore
- Cheyutha Scheme: Rs 14,861 crore
- Rythu Bharosa: Rs 18,000 crore
This apart, Rs 50,713 crore has been allocated for implementation of Six Guarantees.
The minister said the budget prioritises farmer welfare, women’s empowerment, youth employment, quality education, healthcare and infrastructure, despite financial pressures and past debt burdens. He added that the restructuring of high-interest loans taken on by the previous government has reduced the repayment burden and improved the state's liquidity.
From Breakfast to Intermediate Meals: Telangana Rolls Out Massive Student Welfare Push
In a major boost to student welfare and education, the Telangana government has announced a series of ambitious initiatives aimed at improving nutrition, access, and quality of education across the state. Bhatti Vikramarka unveiled schemes that span from pre-primary to Intermediate levels.
At the heart of the announcement is the introduction of a Mid-day Meal Scheme for Intermediate students. For the first time, students studying in government junior colleges will receive nutritious meals, a move aimed at enhancing both health and academic performance. Officials believe that proper nutrition at this crucial stage will improve concentration levels and reduce dropout rates.
Complementing this is a statewide Breakfast Scheme, set to be implemented from the 2026–27 academic year. Under this initiative, students from pre-primary to Intermediate levels will be served breakfast daily, with milk provided three days a week and ragi java on the remaining days. The government hopes this will address early morning hunger and ensure students begin their day with adequate nutrition.
In another key announcement, students enrolled in ITIs and ATCs will receive a monthly stipend of ₹2,000, offering financial support and encouraging skill-based education among youth.
Highlighting infrastructure development, Bhatti Vikramarka said the government will establish 105 ‘Young India Integrated Residential Schools’, one in each Assembly constituency. These schools are envisioned as inclusive campuses where students from SC, ST, BC, Minority, and OC communities can study together. So far, 79 schools have been sanctioned, with construction already underway at 44 locations.
The government has also launched 1,362 pre-primary sections across 33 districts as a pilot initiative. Focusing on girls' education, 93 Kasturba Gandhi Balika Vidyalayas have been upgraded as ‘Young India Institutes of Excellence’ for 2025–26, while 120 additional KGBVs have been elevated to the Intermediate level.
Further, under the Telangana Public Schools initiative, selected institutions will be developed into integrated campuses with modern infrastructure, digital learning tools, trained faculty, and transport facilities. Each campus is expected to cater to around 1,500 students, from pre-primary to Intermediate.
Emphasising the larger vision, Bhatti Vikramarka noted that investing in students’ nutrition and education is key to the state’s progress, adding that these initiatives are designed to turn every child’s dream into reality.
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