Telangana Budget 2025-26: Key takeaways | In charts

The Telangana State budget with an outlay of ₹3.05 lakh crores was presented by the Deputy Chief Minister Mallu Bhatti Vikramarka in the Assembly today (March 19, 2025). The Gross State Domestic Product for the 2024-25 fiscal was ₹16.1 lakh crores as per revised estimates. The growth rate was estimated to be 10.5%.

Here are some other key figures.

Receipts and Expenditure

Revenue receipts stand at ₹2.3 lakh crores for 2025-26 budget estimates, up from ₹2.02 lakh crores last year (revised estimates). Revenue expenditure for 2025-26 is estimated to be ₹2.26 lakh crores, with a deficit of ₹2.7 thousand crores.

Capital receipts and expenditure are estimated to be ₹74.6 thousand crores and ₹36.5 thousand crores respectively.

Trend in revenue receipts

Over 60% of the State’s revenue came from taxes. Non-tax revenue (revenue from interest receipts, dividends, general services, social services and economic services) made up 13.76% of the estimated revenue receipts.

Revenue expenditure for social services increased from ₹81.1 thousand crores in 2024-25 (revised estimates) to ₹1.1 lakh crores in 2025-26 (budget estimates), the highest increase among social, general and economic services receipts. While expenditure for economic services fell from ₹71.4 thousand crores in 2024-25 to ₹67.7 thousand crores in 2025-26, those for general services increased from ₹43.7 thousand crores to ₹48.2 thousand crores.

During the budget presentation, Mr. Vikramarka asked for an increase in the devolution of taxes to the State from the Centre from 41% to 50%, saying that the cesses and charges imposed by the Centre that do not come to the State reduced the revenue that the States received.

How govt earns and spends

Looking at the overall picture of how the government earns and spends, state taxes and duties make up 63.3% of what it earns, while development expenditure makes up 77.9% of what it spends.

Major allocations and its trend

Among allocations to departments, the Scheduled Castes Welfare department received ₹40.2 thousand crores, or 13.19% of the total budget outlay. This is followed by Panchayati Raj and Rural Development with ₹31.6 thousand crores (10.36% of total outlay) and Agriculture with ₹24.4 thousand crores (8.01%).

The findings of the Comprehensive Social, Economic, Education, Employment, Political & Caste Survey (SEEEPC) found that 17.43% of Telangana’s population belong to Scheduled Castes, with around 56% belonging to Backward Classes. The budget lays out ₹11.4 thousand crores for Backward Classes.

Allocations for agriculture saw a decrease from ₹72.6 thousand crores in 2024-25 (25% of total budget outlay) to ₹24.4 thousand crores in this budget (8% of total budget outlay).

On the other hand, energy allocations saw an increase from 5.64% of the budget in 2024-25 to 6.96% of this budget. Allocations for education also increased from 7.31% to 7.93%.

Energy allocations included those for power subsidies, free electricity under the Gruha Jyothi scheme, and Electricity Ambulance Service to provide swift handling of electricity issues and power disruptions. Education allocations included those for establishing Young India Integrated Residential Schools to “revamp the government education system” and mid-day meal schemes for schools.

Public debt

The government’s outstanding public debt rose to ₹5,04,814 crores for 2025-26, up from ₹4,51,203 crores last year. This is 28.1% of the Gross State Domestic Product. Of this amount, ₹4,07,059 crores came from open market loans, with the remaining debt coming from loans from central government, loans from autonomous bodies, special securities (small savings) and provident fund, reserve funds and deposits.