Telangana Budget 2026-27: ₹3.24 lakh crore outlay, focus on welfare and debt

Telangana's Deputy Chief Minister and Finance Minister, Mallu Bhatti Vikramarka, presented the state's budget for the fiscal year 2026-27, amounting to a total outlay of ₹3.24 lakh crore on March 20, 2026. This budget represents a notable increase from the previous fiscal year, with a strong focus on welfare, development, and fulfilling key poll promises. The government has outlined several new initiatives, including the 'Indiramma Family Life Insurance Scheme', which will provide ₹5 lakh in life insurance coverage to 1.15 crore families across the state, commencing from June 2, 2026. For this, an allocation of ₹4,000 crore has been made. A significant emphasis has been placed on education and student welfare. The budget introduces a new breakfast scheme for students from pre-primary to intermediate levels, with allocations of ₹720 crore. This scheme aims to provide milk three days a week and ragi malt on the remaining days, ensuring that no child starts their lessons on an empty stomach. Furthermore, the existing mid-day meal scheme, previously limited to school students, will be extended to intermediate students in government junior colleges, with an additional ₹100 crore allocated for its implementation and kitchen modernization. The education sector as a whole has been allocated ₹26,674 crore, a notable increase from the previous year. In terms of sectoral allocations, the agriculture sector has received ₹23,179 crore, although this represents a slight reduction from the previous year's allocation. The irrigation sector has been allocated ₹22,615 crore, aimed at completing ongoing projects and securing the state's water resources. The energy sector's allocation remains largely static at ₹21,285 crore, with a significant portion dedicated to subsidies for agricultural pump-sets and households. The Panchayat Raj and Rural Development department received a substantial allocation of ₹33,688 crore, underscoring the focus on rural development. However, a critical aspect of the budget is the state's mounting public debt. The budget documents indicate that the public debt outstanding is inching towards the ₹6 lakh crore mark. By the end of the fiscal year 2026-27, the total public debt is projected to reach ₹5.62 lakh crore, an increase from ₹5.03 lakh crore in the current fiscal year. The government plans to raise approximately ₹60,000 crore through debt during this financial year. While the government maintains that it is keeping debt within the Gross State Domestic Product (GSDP) limit, concerns have been raised about fiscal sustainability due to the high reliance on borrowings, especially when factoring in contingent liabilities and guarantees. The budget also highlights economic indicators such as per capita income, which stood at ₹4,18,931 in 2025-26, showing a growth rate of 10.2%, compared to the national per capita income. The state's Gross State Domestic Product (GSDP) for 2025-26 was ₹17,82,198 crore, with a growth rate of 10.7%. Other key allocations include ₹13,679 crore for the Medical and Health department, ₹17,907 crore for Municipal Administration and Urban Development, and ₹875 crore for the Information Technology department, indicating a rise from the previous year's allocation. The home department has been allocated ₹11,907 crore. The budget presentation on March 20, 2026, was covered extensively by various news outlets, including The Hindu, The News Minute, Deccan Herald, The Economic Times, and The New Indian Express, corroborating the major claims regarding the budget size, key initiatives, and financial figures.

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