Telangana Prepares to Present 2025-26 Budget as Financial Challenges Persist

Highlights

The Telangana government is set to unveil its financial blueprint for 2025-26 in the Legislative Assembly on Wednesday, with Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka presenting the budget around noon.

Hyderabad: The Telangana government is set to unveil its financial blueprint for 2025-26 in the Legislative Assembly on Wednesday, with Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka presenting the budget around noon. With the final preparations underway, officials are working to refine the proposals, balancing immediate financial obligations with the need to generate resources for ongoing welfare programmes.

While the exact budget allocation will be disclosed during the presentation, speculation suggests that the total expenditure may exceed ₹3 lakh crore for the first time, potentially reaching ₹3.2 lakh crore. Addressing the legislature on March 12, Governor Jishnu Dev Varma hinted at a significant increase, remarking, "Every financial decision reflects the hopes of our citizens."

The budget announcement comes at a time when Telangana’s revenue generation has not met expectations. As per provisional figures from the Comptroller and Auditor General of India, the state had collected ₹1.82 lakh crore by the end of January—only 66.57% of the targeted ₹2.74 lakh crore for 2024-25. A considerable portion of the funds raised so far stemmed from loans and other liabilities, which have already exceeded initial estimates.

The government remains dependent on short-term financial support from the Reserve Bank of India, frequently utilising special drawing facilities and ways and means advances to manage cash flow. In December alone, the state relied on these mechanisms extensively to cover expenditures.

Looking ahead, the administration is optimistic about improved revenues in the coming fiscal year. Plans to auction 400 acres of prime land in Kancha Gachibowli and allocate retail liquor licences are expected to generate substantial funds. However, with limited room for tax increases, securing steady revenue while sustaining development initiatives remains a critical challenge.

As the state presents its financial roadmap, attention will be on how the government strategises to balance spending commitments with sustainable income, ensuring continued progress despite economic constraints.