Welfare schemes are becoming a heavy drag on the finances, and the state would be hard-pressed to bridge the gap between expenditures and revenue.
Published Mar 19, 2025 | 10:01 AM ⚊ Updated Mar 19, 2025 | 1:13 PM
Bhatti Vikramarka in Assembly. (Screengrab)
Telangana’s Deputy Chief Minister Mallu Bhatti Vikramarka, also the finance minister, presented the state’s Budget for the financial year 2025-26 on Wednesday, 19 March.
The budget has a total outlay of ₹3.04 lakh crore with an estimated revenue expenditure of ₹2.26 lakh crore and an estimated capital expenditure of ₹36,504 crore.
Even while the welfare schemes are becoming a heavy drag on the finances, Vikramarka praised them claiming that they have been benefitting the people of the state.
"The farmers, poor, and women were looking forward to the budget today. However, to sum it up, it seems like the #Congress has forgotten about its 6 guarantees," BRS Working President KT Rama Rao said.
"They are yet to set up the Auto Drivers Welfare Board and Gig Workers Board and they didn't even mention it," he pointed out.
He further said that the Congress was prioritising sending money to Delhi over the farmers and the poor.
Deputy Chief Minister Mallu Bhatti Vikramarka, also the finance minister, said the policies of the Telangana government have been carefully designed to reflect the values and aspirations of the people.
"Our development initiatives are aimed at empowering farmers, entrepreneurs, students, women, the elderly, daily wage workers, and IT professionals, ensuring that every segment of society benefits from our progress," he said.
"It is our shared responsibility to rise above differences, engage in constructive dialogue, and work together to achieve outcomes that serve the greater good," he proposed towards the end of the speech.
The Assembly has been adjourned to meet again on 21 March.
As part of the new tourism policy, the Telangana government is developing 27 exclusive tourism zones across the state while also enhancing infrastructure near Rajiv Gandhi International Airport and the Regional Ring Road (RRR) to improve accessibility and tourism potential.
The budget has also allocated an allocation of ₹465 crore for the Sports Department.
"The government is pioneering the development of India’s first Net-Zero Future City, setting a new standard in sustainable and smart urbanisation. Designed to rival the world’s top cities, this eco-friendly, ultra-modern metropolis will feature state-of-the-art infrastructure, cutting-edge technology, and a pollution-free environment," the Deputy Chief Minister announced.
"Spanning 765 sq. km across 56 villages between the Srisailam and Nagarjuna Sagar highways, this transformative mega-urban project is meticulously planned to drive innovation and economic growth. To ensure its seamless execution, the Future City Development Authority (FCDA) has been established. This next-generation city will be equipped with multimodal connectivity, an electric public transport network, and green buildings, fostering a sustainable and smart living ecosystem," he continued.
He added that it would house specialised zones such as an AI City, Pharma Hub, Sports City, and Clean Energy Innovation Zone.
"In this budget, we are proposing an allocation of ₹ 17,677 crore for the Municipal Administration and Urban Development Department," he announced.
"Telangana has witnessed significant growth in electricity consumption, driven by rapid industrial, agricultural, and economic expansion. Moreover, TS TRANSCO has established itself as one of India's top-performing power transmission companies, achieving minimal transmission losses and ensuring efficient and reliable power distribution across the state. This year, although Telangana’s peak electricity demand reached 16,918 MW, we were able to provide uninterrupted power supply to the people," the Deputy Chief Minister said.
He further reiterated the government's commitment to pursuing green energy.
"In this budget, we are proposing an allocation of ₹21,221 crore for the Energy Department," he announced.
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 transform it into a global hub for AI innovation and enterprise. This AI City will serve as a centre for leading multinational corporations. In a significant milestone for this initiative, Google has committed to establishing an AI-powered Accelerator Center within AI City," Deputy Chief Minister Mallu Bhatti Vikramarka announced.
He proposed an allocation of ₹774 crore for the Information Technology Department.
"Over the next five years, the government plans to invest ₹4,000 crore in MSME (Micro, Small and Medium Enterprises) development, with a target of establishing over 25,000 new MSME industries across the state," the Deputy Chief Minister announced.
He also announced, "To achieve widespread industrial growth across Telangana by 2050, the government has introduced the Mega Master Plan - 2050."
He reported that it is aimed at decentralising industrial development, ensuring that Hyderabad is not the sole hub of progress.
"Further, the government is establishing the Hyderabad-Warangal Industrial Corridor along both sides of NH 163, creating a strategic growth corridor that will attract investments and boost regional industrialisation," he said.
"In this budget, we are proposing an allocation of ₹3,527 crore for the Industries Department," he announced.
The deputy chief minister proposed an allocation of ₹3,591 crore for the Minority Welfare Department.
"The government has decided to provide two high-quality sarees annually to 64.7 lakh members of Self-Help Groups (SHGs) across the state. To support local weavers, the production of these sarees has been exclusively entrusted to the weavers of Telangana," the Deputy Chief Minister said.
"In this budget, we are proposing an allocation of ₹371 crore for the Handlooms," he announced.
Deputy Chief Minister Mallu Bhatti Vikramarka also announced an allocation of ₹11,405 crore for the Backward Classes Welfare Department.
"Through the Scheduled Tribes Special Development Fund (STSDF), we are allocating funds for the advancement of key sectors such as healthcare, education, and livelihoods in tribal areas," Deputy Chief Minister Mallu Bhatti Vikramarka announced.
"For the first time, the state government has launched a special scheme called Indira Giri Jalavikasam to support tribal farmers cultivating podu lands. Under this initiative, solar-powered pump sets will be provided to ensure irrigation facilities. Over the next four years, ₹12,600 crore will be allocated to benefit 2.1 lakh tribal farmers," he explained.
"In this budget, we are proposing an allocation of ₹ 40,232 crore for Scheduled Castes Welfare and ₹ 17,169 crore for Scheduled Tribes Welfare," he announced.
The deputy chief minister announced an allocation of ₹2,862 crore for the Women and Child Welfare Department for FY 2025-26.
"In this budget, we are proposing an allocation of ₹31,605 crore for the Panchayati Raj and Rural Development Department," the Deputy Chief Minister announced.
He noted that the Indira Mahila Shakthi initiative has empowered SHGs (Self Help Groups) across the state. He added that the government would further integrate women into the food supply chain and energy production. This would be alongside special insurance and promotion of business opportunities.
"In this budget, we are proposing ₹900 crore for the Youth Services Department," Deputy Chief Minister Mallu Bhatti Vikramarka announced.
He noted that schemes and initiatives like the Telangana Digital Employment Center, Ambedkar Knowledge Centres, BFSI Training, and Rajeev Gandhi Civil Services Abhaya Hastam would not only generate employment but also upskill the youth.
"We have increased diet charges by 40 percent and cosmetic charges by 200 percent in all gurukuls, welfare department hostels, and Kasturba Gandhi Girls' Schools in the state," Deputy Chief Minister said, announcing that the government is ensuring free electricity supply for all government educational institutions.
"In honour of the women of Telangana, we have renamed Koti Women's University after the courageous warrior Chakali Ailamma. While preserving the university's heritage building, we are also investing ₹550 crore in the construction of additional infrastructure," he announced.
An allocation of ₹23,108 core has been made for the Education Department for FY 2025-26.
"Social development is possible only through education. Education serves as a guiding light for the secure future of children from the poor and disadvantaged classes," the Deputy Chief Minister said.
"We are on the verge of creating an education system dreamt by Dr BR Ambedkar. Hence, our government has made a historic
decision to issue an administrative sanction for an amount of ₹11,600 crore for the establishment of 58 Young India Integrated Residential Schools across the state. We are committed to setting up at least one Young India Residential School in every constituency," he announced.
"To promote large-scale fish exports from our state, we have proposed the construction of an export-oriented wholesale fish market in Koheda, Ranga Reddy district, with a cost of ₹47 crore," the Deputy Chief Minister announced.
He added that the existing Veterinary Biological Research Institute in Shanti Nagar in Hyderabad will be shifted to Mamidipalli and is being expanded on a large scale with an investment of ₹300 crore.
Additionally, he announced that the government is establishing a new Frozen Semen Bull Station in Kansanpally, Ranga Reddy district, with an investment of ₹21.06 crore.
"In this budget, we are proposing an allocation of ₹ 1,674 crore for the Animal Husbandry Department," he announced.
Deputy Chief Minister Mallu Bhatti Vikramarka announced an allocation of ₹24,439 crore for the Agriculture Department for FY 2025-26.
The Telangana government has already expressed concern over the declining share of tax devolution for Southern states, including Telangana. Under the 14th Finance Commission, Telangana received 2.437 percent of funds, which declined to 2.102 percent under the 15th Finance Commission.
“Our government represented that allocating fewer funds to well-performing states is unfair and advocated a more rational tax distribution system that incentivises states contributing significantly to the nation's economic growth,” said the finance minister.
He added that the Telangana government has proposed reforms in the horizontal tax devolution, suggesting a shift away from the current "Per Capita Income Distance" criterion. Instead, it recommends assigning 50 percent weightage to GSDP (Gross State Domestic Product) to ensure a more equitable allocation of resources for states driving national economic growth.
“This proposal aims to promote balanced development by fairly distributing financial resources to highperforming states. Telangana remains committed to securing its rightful share, while ensuring the effective utilization of economic resources to strengthen its financial stability and growth,” he said.
The state proposes to lay roads under the Hybrid Annuity Model.
Under this model, the state government will spend 40 percent of the total expenditure while the private sector will bear the remaining 60 percent.
Under this model, 17,000 km of rural roads will be laid by 2028. The total investment would be about ₹28,000 crore.
The deputy chief minister explained that in 2024-25, Telangana's Gross State Value Added (GSVA) is primarily driven by the service sector, which contributes 66.3 percent, followed by the agriculture and allied sectors at 17.3 percent and the industrial sector at 16.4 percent.
"Although the agriculture and allied sectors contribute a smaller share to the GSDP, they provide employment to 42.7 percent of the total workforce in the state."
"The industrial sector in Telangana provides employment to 22.5 percent of the workforce. By adopting the "China +1" strategy, the government aims to develop Telangana into a global manufacturing hub in key sectors such as pharmaceuticals, biotechnology, electric vehicles, and renewable energy."
"The service sector remains the largest employment provider in the state, accounting for 34.8 percent of the total workforce. Hyderabad has emerged as a leader in the IT sector, significantly contributing to employment growth, particularly in software services, fintech, logistics, and tourism."
Since its launch, a total of 149.63 crore free trips have been availed by women on 7,227 buses, saving them ₹5,005.95 crores. The introduction of this scheme has also significantly improved RTC’s occupancy rates, from 69% to 94% in regular buses, the deputy chief minister said.
"In special Mahalakshmi buses, the occupancy rate has reached 100%, positively impacting RTC’s financial stability. Besides increasing the number of buses, the government has also created 6,400 additional jobs in RTC."
"The government is regularly funding RTC, ensuring smooth and uninterrupted implementation of this scheme."
"As part of the Mahalakshmi Scheme, eligible women are provided LPG cylinders at just ₹500. This initiative is benefiting 43 lakh families across the state. To support this effort, the state government has provided funds to the tune of ₹433.20 crores."
"Under the Gruha Jyothi Scheme, households consuming up to 200 units of electricity are provided free electricity, benefiting 50 lakh families across the state. As of February 2025, the state government has released funds of ₹1,775.15 crores for the implementation of this scheme."
"The Indiramma Housing Scheme was launched in March 2024, with a policy decision to grant house ownership in the name of women. Under this scheme, the government has sanctioned 4.5 lakh houses, with a minimum allocation of 3,500 houses per constituency, at an estimated cost of ₹22,500 crores."
“The previous government pledged to provide double bedroom houses for the poor over a decade, raising hopes but failing to deliver on its promise. Our government has allocated ₹305.03 crore to complete the construction of 34,545 pending houses, ensuring they reach the intended beneficiaries,” said the finance minister.
He added a new initiative is underway to develop satellite townships around Hyderabad along the Outer Ring Road (ORR). These townships will feature affordable housing communities, making homeownership more accessible for low-income and middle-class families.
The Telangana budget has allocated ₹10, 188 crore for the state Home department.
The size of the budget: ₹3.04 lakh crore
Revenue expenditure: ₹2.26 lakh crore
Capital Expenditure: ₹36,504 crore
"We want to develop Telangana into a trillion-dollar economy. We are also developing a masterplan for the development of Hyderabad into a global city," Deputy Chief Minister Mallu Bhatti Vikramarka said.
He noted that the government aims to make the capital city sustainable and pollution-free.
Ahead of the budget presentation, Telangana State Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, Legislative Affairs Minister Duddilla Sridhar Babu and State Transport Minister Ponnam Prabhakar Goud presented copies of the Telangana State Annual Budget (2025-26) to the Speaker of the Legislative Assembly, Gaddam Prasad Kumar, in the Speaker's Chamber.
Presenting the budget copy to the Speaker.
Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka starts presenting the state budget 2025-26 in the Telangana Assembly.
BRS MLAs and MLCs protest on the assembly premises with dried rice husks. The party claimed that crops on lakhs of acres withered due to lack of irrigation water under incompetent Congress rule.
Live: అసెంబ్లీ మీడియా పాయింట్ వద్ద మాట్లాడుతున్న బీఆర్ఎస్ ఎమ్మెల్యేలు@KTRBRS https://t.co/STb4XAy1rL
— BRS Party (@BRSparty) March 19, 2025
The Revanth Reddy-led Congress government is ambitious but it has no funds, and it would have to borrow heavily from financial institutions. The Centre’s help is also something that it cannot count on since it is a non-NDA government in the state saddle.
Deputy Chief Minister Mallu Bhatti Vikramarka reached the Assembly for a budget presentation. He was welcomed by IT Minister D Sridhar Babu Transport Minister Ponnam Prabhakar, Tourism Minister Jupally Krishna Rao and others.
Ahead of the budget presentation, a cabinet meeting chaired by Chief Minister A Revanth Reddy was held at 9:30 am to approve the budget.
This marks the second budget presentation by the Congress government since assuming office.
Telangana Deputy Chief Minister Mallu Bhatti Vikramarka took part in special pujas at the Nallapochamma Ammavari Temple in Praja Bhavan alongside his wife ahead of the budget presentation.
