Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Friday presented a budget of Rs 3.24 lakh crore for 2026-27.
Key Highlights: Telangana Budget 2026-27
- Total outlay: Rs 3.24 lakh crore
- Revenue expenditure: Rs 2.34 lakh crore
- Capital expenditure: Rs 47,267 crore
- GSDP growth: 10.7%
- Target: $1 trillion economy by 2034
Presenting the third full-fledged budget of the Congress government in the state Assembly, he pegged the revenue and capital expenditure at Rs 2.34 lakh crore and capital expenditure at Rs 47,267 crore respectively.
“For the financial year 2026-27, I propose a total expenditure of Rs 3,24,234 crore, revenue expenditure of Rs 2,34,406 crore, and capital expenditure of Rs 47,267 crore,” he said.
Last year, the finance minister had presented a Rs 3.04 lakh crore budget for 2025-26.
Telangana Budget 2026-27 focuses on growth and GSDP expansion
Telangana’s Gross State Domestic Product (GSDP) recorded a growth rate of 10.7 per cent during 2025-26 against the national growth rate of 8 per cent. At current prices, Telangana’s GSDP stands at Rs 17,82,198 crore.
“Telangana’s growth rate is 2.7 per cent higher than the national average growth rate. Likewise, the state’s GSDP accounts for 5.0 per cent of the national GDP, making Telangana a strong growth engine for the country,” he said.
He stated that although India’s growth rate has declined to 8 per cent from 9.8 per cent in 2024-25, Telangana’s GSDP growth rate increased from 10.6 per cent in 2024-25 to 10.7 per cent in 2025-26.
Telangana Budget 2026-27: per capita income and economic performance
The per capita income of Telangana in 2025-26 was Rs 4,18,931, with a growth rate of 10.2 per cent. “The national per capita income stood at Rs 2,19,575, while the growth rate was only 6.9 per cent. Compared to the national per capita income, Telangana’s per capita income is higher by Rs 1,99,356. That is, it is 1.9 times higher.”
The finance minister revealed that the state has set a great goal of transforming the economy, which is currently at 200 billion US dollars, into a one trillion US dollar economy by 2034 and a three trillion US dollar economy by 2047. To achieve this objective, the government is preparing special sector-wise plans.
He claimed that despite facing many challenges and financial pressures, Telangana is moving rapidly on the path of development, like a phoenix rising again from the ashes. He said the budget has been designed to lead Telangana toward sustainable development by giving priority to farmer welfare, women’s empowerment, employment opportunities for youth, quality education with skills, health, nutritious food for students, and infrastructure development.
Debt restructuring and fiscal strategy in Telangana Budget 2026-27
Vikramarka said that due to excessive borrowings made beyond limits during the previous government’s tenure, a severe burden was placed on the state economy. To correct this mistake, the loans of Rs 25,612 crore raised by the previous government at high interest rates were restructured at lower interest rates.
“Further, the repayment period was extended, and the principal repayment tenure was lengthened to between 20 and 39 years. Through this debt restructuring, the amount payable from 2025-26 to 2031-32 was reduced from Rs 34,058 crore to Rs 11,915 crore. As a result, the state’s cash outflow has reduced by Rs 22,142 crore, providing liquidity relief.”
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