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  • Telangana Budget Analysis 2025-26

Telangana Budget Analysis 2025-26

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The Finance Minister of Telangana, Mr. Mallu Bhatti Vikramarka presented the Budget for the state for the financial year 2025-26 on March 19, 2025.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Telangana for 2025-26 (at current prices) is projected to be Rs 18,00,325 crore, amounting to growth of 12% over the revised estimates of 2024-25.

  • Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 2,84,837 crore, an increase of 14% from the revised estimates of 2024-25.  In addition, debt of Rs 20,128 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 2,30,828 crore, an increase of 14% as compared to the revised estimate of 2024-25.  

  • Revenue surplus in 2025-26 is estimated to be 0.2% of GSDP (Rs 2,738 crore), as compared to a revenue surplus of 0.4% of GSDP (Rs 5,889 crore) at the revised estimate stage in 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 3.0% of GSDP (Rs 54,010 crore).   In 2024-25, as per the revised estimates, fiscal deficit is expected to be 2.9% of GSDP, marginally lower than the budgeted 3.0% of GSDP.

Policy Highlights

  • Education:   58 Young India integrated residential schools will be built at a total cost of Rs 11,600 crore to provide holistic education to students.   These schools will contain facilities such as auditoriums, dining halls, digital classrooms, and sports fields.  Students in these schools will be provided with accommodation, meals, uniforms, notebooks, textbooks, and all other essential items free of cost.  These schools will predominantly be powered by solar and wind energy.  

  • Youth development:  Rajeev Youth Development Scheme has been launched with an initial funding of Rs 6,000 crore to provide self-employment schemes for youth belonging to SC, ST, OBC, and minorities.   Under this scheme, every eligible unemployed person will be provided financial assistance of up to four lakh rupees.

  • Rural development:  Establishment and maintenance of solar power plants is being entrusted to women self-help groups.  This project is expected to generate 1000 MW of power and create job opportunities for women in the state.  

  • Industrial development:  Five percent of plots in new industrial parks will be allocated for women entrepreneurs and 15% to SC/ST entrepreneurs.  SC/ST entrepreneurs will also receive land cost subsidy of up to 50%, up to a maximum limit of Rs 50 lakh.  Stamp duty reductions, electricity tariff concessions, and land cost subsidies are also being offered for private factory complexes. 

Telangana’s Economy

  • GSDP:  In 2023-24, Telangana’s GSDP (at constant prices) is estimated to grow by 9.2% over the previous year.  In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24.  In 2023-24, agriculture, manufacturing and services are expected to grow by 0.9%, 12.3%, and 11.3% respectively in real terms.  

  • Sectors:  In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 18%, 16%, and 67% of Telangana’s economy, respectively (at current prices).

  • Per capita GSDP:  In 2023-24, Telangana’s per capita GSDP (at current prices) is estimated to be Rs 3,93,385, an increase of 14% over 2022-23.  In 2023-24, India’s per capita GDP is estimated to increase by 11% over 2022-23 to Rs 2,15,935.

Figure 1: Growth in Telangana’s GSDP at constant prices (2011-12) 
  image

Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: MoSPI; PRS.

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