Telangana Budget 2026: ₹3.24 lakh crore outlay, ₹5 lakh insurance for 1.15 Cr families

Hyderabad: The Telangana government on Friday presented a ₹3,24,234 crore budget for 2026–27, laying strong emphasis on welfare expansion, education, tribal development and green energy, while balancing growth and fiscal discipline.

Deputy Chief Minister and Finance Minister Bhatti Vikramarka tabled the third full-fledged budget of the Congress government in the Legislative Assembly, stating that it is guided by Dr. B.R. Ambedkar’s vision of social and economic justice.

The budget was also presented in the Legislative Council by Minister Uttam Kumar Reddy.

The budget proposes a revenue expenditure of ₹2,34,406 crore and a capital outlay of ₹47,267 crore, with borrowings estimated at ₹73,383 crore.

In 2025–26, the finance minister had proposed a budget of ₹3.04 lakh crore.

Major welfare push: Insurance & Pensions

In a key announcement, the government introduced the Indiramma Family Life Insurance Scheme, under which 1.15 crore families will receive ₹5 lakh life insurance cover, effective from June 2.

Further strengthening social security, 2 lakh new pensions will be sanctioned under the Cheyutha scheme for eligible beneficiaries.

Focus on Education & Youth Empowerment

The government announced the extension of the mid-day meal scheme to Intermediate students, a first-of-its-kind initiative aimed at improving nutrition and retention.

To boost skill development, trainees in 118 Advanced Technology Centres (ATCs) and ITIs will receive a ₹2,000 monthly stipend, enhancing employability among youth.

Additionally, ₹6,000 crore has been allocated for Rajiv Yuva Vikasam, focusing on youth empowerment.

₹5,000 crore has been allocated for Young India schools.

Inclusive welfare allocations

Significant allocations have been made for the welfare of marginalized communities:

SC Welfare: ₹11,784 crore

ST Welfare: ₹7,937 crore

BC Welfare: ₹12,511 crore

Minorities: ₹3,769 crore

Kalyana Lakhshmi: ₹ 3,683 crore

Tribal development & Agriculture boost

The budget places special focus on tribal welfare through the Indira Soura Girijana Vikasam programme with an outlay of ₹12,600 crore. Key measures include:

100% subsidy solar pump sets for Scheduled Tribe farmers

Plantation development on 6 lakh acres of podu lands

Benefits to around 2.1 lakh tribal farmers

Agriculture and farmer welfare have been allocated ₹23,179 crore, underlining the sector’s priority.

Sector-wise allocations

The government has earmarked funds across key sectors:

Power: ₹21,285 crore

Civil Supplies: ₹7,366 crore

Animal Husbandry: ₹1,529 crore

Education: ₹26,674 crore

Health: ₹13,679 crore

Labour: ₹998 crore

Women & Child Welfare: ₹3,143 crore

IT: ₹875 crore

Industries: ₹3,490 crore

Handlooms: ₹258 crore

Tourism: ₹1,224 crore

Infrastructure & Rural Development

A substantial push has been given to infrastructure and grassroots development:

Panchayat Raj & Rural Development: ₹33,688 crore

Irrigation: ₹22,615 crore

Roads & Buildings: ₹12,789 crore

Municipal Administration: ₹17,907 crore

Housing: ₹7,430 crore

Home Department: ₹11,907 crore

Judiciary: ₹2,367 crore

Musi Riverfront Development – ₹1,500 crore

Osmania University – ₹1,000 crore

Metro Rail Phase-II – ₹600 crore

Mahalakshmi Gas Subsidy Scheme – ₹723 crore

Rajiv Aarogyasri – ₹1,143 crore

Gruhajyothi Scheme – ₹2,080 crore

Bonus for Agricultural Produce – ₹3,500 crore

Mahalakshmi Scheme – ₹4,305 crore

Indiramma Housing – ₹5,500 crore

Cheyutha Scheme – ₹14,861 crore

Rythu Bharosa – ₹18,000 crore

Implementation of Six Guarantees – ₹50,713 crore

The government also set aside ₹500 crore for the upcoming Godavari Pushkaralu.

Green Energy & Investment Drive

Positioning Telangana as a clean energy hub, the government announced:

1,500 MWh Battery Energy Storage Systems in Maheshwaram and Choutuppal

₹95,150 crore investments through TG Genco for 11,460 MW pumped storage projects

₹1,23,350 crore investments via REDCO through 12 renewable energy agreements

Expansion of pre-primary education in Government Schools

"To strengthen primary education, we have launched 1,362 pre-primary sections as a pilot project across 33 districts. Plans have been prepared to expand this initiative to 2,000 to 2,500 government schools in the upcoming academic year, " the deputy chief minister said.

Balancing welfare and growth

While the budget prioritizes welfare and inclusive development, it also focuses on infrastructure creation and investment attraction. However, the sizeable borrowings indicate continued dependence on debt to fund expansive schemes.

Vision for Telangana

Presenting the budget, Bhatti Vikramarka reiterated the government’s commitment to achieving equitable growth, social justice, and sustainable development, positioning Telangana as a progressive and investment-friendly state.