The Telangana Budget 2025-06 gave a clear push for the six ‘guaranteed’ welfare schemes of the Congress government in the state — with an allocation of Rs 56,084 crore being earmarked for the same. The budget also gave a push for welfare schemes for the socio-economically backward sections with a budget allocation of Rs 72,397 crore earmarked for SC (Rs 40,232 crore), ST (Rs 17,169 crore), BC (Rs 11,405 crore) and minorities welfare departments (Rs 3,591 crore).
The Budgetpresented by deputy chief minister and finance minister Mallu Bhatti Vikramarka, showed a total expenditure of Rs 3.04 lakh crore, with a revenue expenditure of Rs 2.26 lakh crore and capital expenditure of Rs 36,504 crore. This marks an increase from the previous years’ Budgets of Rs 2.91 lakh crore in February 2024, and Vote on Account Budget of Rs 2.75 lakh crore presented prior to Lok Sabha polls. The budget marks a clear blend of “welfare and development” Vikramarka said.
The Congress government had come to power in the state in 2023, boosted by the party’s welfare promises that included the much publicised ‘six guarantees’ — Mahalakshmi scheme for women, Rythu Bharosa scheme for farmers, Gruha Jyothi scheme, Indiramma Illu scheme and Cheyutha scheme for the economically weaker sections and Yuha Vikasam for the youth.
In the Budget, key allocations included Rs 4,305 crore for the Mahalakshmi Scheme, which focuses on free RTC bus travel for women, gas cylinders for Rs 500 and Rs 2,500 every month for underprivileged women. A total of Rs 2,080 crore was allocated for Gruha Jyothi Scheme, which focuses on 200 units of free electricity for households. The government has also allocated Rs 1,800 crore for Sanna Rice Bonus which is meant for hunger alleviation and Rs 1,143 crore for Rajiv Arogya Sri which focuses on healthcare for the poor.
Speaking about the welfare push Vikramarka said: “In the 2025-26 financial year, we are not only allocating the required budget but also releasing the funds pending from 2023-24. Respecting the laws made for the SC/ST communities and ensuring they receive their rightful funds is a testament to our government’s genuine commitment to their welfare.”
For farmers, the government has already waived loans the government vouched. “Standing by our commitment to farmers’ welfare, our government has waived farm loans up to Rs 2 lakh. So far, Rs 20,616.89 crores worth of loans have been waived for 25.35 lakh farmers. This decisive action has cleared the loans of farmers, enabling them to access new agricultural loans with ease,” Vikramarka said.
The industries department also got a push with the government focusing on “inclusive” growth. “To promote inclusive industrial growth, the government has decided to allocate 5 percent of plots in new industrial parks to women entrepreneurs and 15 percent to SC/ST entrepreneurs. Additionally, SC/ST entrepreneurs will receive a land cost subsidy of up to 50 percent, subject to a maximum limit of ₹50 lakh, to encourage their participation in the industrial sector,” Vikramarka said.
Story continues below this ad
According to the Budget, Rs 31,605 crore was allocated to Panchayat Raj and Rural Development department, Rs 24,439 crore to Agriculture, Rs 23,373 crore for Irrigation, Rs 23,108 crore for Education, Rs 21,221 crore for Energy, and Rs 17,677 crore for Municipal Administration and Rs 12,393 crore towards the Health and Family Welfare department. Rs 2,862 crore will be spent towards the Women and Child Welfare department, Rs 1,674 crore towards the Animal Husbandry department, and Rs 1,023 crore towards the Forests and Environment department. The Youth services department is allocated Rs 900 crore, whereas the Tourism department received Rs 775 crore. The information technology, sports, and handlooms departments received Rs 774 crore, Rs 465 crore and Rs 371 crore, respectively.
The welfare and social justice allocations were being made at a time when the state’s economy has been robust, Vikramarka said. The state’s Gross Domestic Product (GSDP) growth for the financial year 2024-25 was at 10.1 percent when compared to the national GDP growth rate of 9.9 percent. The per capita income growth rate in the state was at 9.6 percent, for the same period, when compared to the country’s per capita income growth rate of 8.8 percent. “Clearly Telangana’s per capita income is 1.8 times higher, that is, Rs 1,74,172. Reflecting the state’s strong economic progress,” Vikramarka said.
The state, however, asked for financial assistance from the Centre in the 16th Finance Commission, “urging a fair share of central tax distribution for states”. The state has also asked for “greater financial assistance for debt stability, infrastructure development, and social welfare programs”, Vikramarka said. Expressing concern over “unfair” devolution of taxes to the southern states including Telangana, the finance minister said that the Telangana government has proposed reforms in the horizontal tax devolution, suggesting a shift away from the current “Per Capita Income Distance” – the difference between a state’s income and the state with highest per capita income — criterion.
“It recommends assigning 50 percent weightage to GSDP (Gross State Domestic Product) to ensure a more equitable allocation of resources for states driving national economic growth…Telangana remains committed to securing its rightful share, while ensuring the effective utilisation of economic resources to strengthen its financial stability and growth,” Vikramarka said.
