Published Mar 19, 2025 | 10:14 PM ⚊ Updated Mar 19, 2025 | 10:14 PM
Synopsis: The Telangana budget 2025-26 allocated a whopping ₹1,04,329 crore, comprising 35 percent of the total budget allocations, for welfare schemes, including the Congress-led government’s six guarantee schemes, alongside other welfare and infrastructure programmes. However, whether the government can meet these revenue targets and fully implement its budgeted allocations remains uncertain, given the state’s dire fiscal situation.
Telangana Finance Minister, Mallu Bhatti Vikramarka, in his 2025-26 state budget presentation, announced a substantial allocation of ₹1,04,329 crore for welfare schemes, comprising 35 per cent of the total state budget of ₹3,04,965 crore.
The significant allocation has raised concerns over whether the state will be able to mobilise and spend the allocated amounts as intended, given the already considerable strain on state finances.
Of the ₹1,04,329 crore, ₹56,084 crore is earmarked for the Congress party’s Six Guarantees, promised during the 2023 Assembly elections. The remaining funds will support other schemes, ongoing programmes, and infrastructure, all classified under welfare.
The largest allocation under the Six Guarantees is ₹18,000 crore for Rythu Bharosa, which provides ₹12,000 per acre per year to farmers for two agricultural seasons to support agricultural productivity.
Beyond the Six Guarantees, the government has set aside:
The 2025-26 budget also focuses on development, infrastructure, salaries, and pensions, but past trends indicate a shortfall in revenue receipts.
In 2024-25, the state projected ₹2,90,914 crore in receipts, but actual receipts were only ₹2,66,708 crore—a drop of over 8 per cent. If this trend continues, a revenue shortfall of more than ₹24,000 crore is likely.
For 2025-26, revenue receipts are estimated at ₹2,29,720 crore, including:
The state also expects ₹74,645 crore from capital receipts, of which:
By the end of 2025-26, Telangana’s cumulative debt is projected to reach ₹5,04,814 crore, which is 26.1 per cent of the state’s Gross State Domestic Product (GSDP). The Finance Commission advises that state debt should not exceed 30 per cent of GSDP.
In recent years, the state’s debt burden has been rising:
For 2025-26, public debt repayment is estimated at ₹20,127 crore, adding to the burden from previous loans.
The government expects state taxes to ease the financial strain, with projected collections of:
However, whether the government can meet these revenue targets and fully implement its budgeted allocations remains uncertain.
(Edited by Dese Gowda)
