Telangana’s Deputy Chief Minister and Finance Minister, Mallu Bhatti Vikramarka, unveiled a budget of Rs 3.24 lakh crore for the fiscal year 2026-27. This marks the third comprehensive budget presentation by the Congress government in the state Assembly. The budget outlines revenue and capital expenditures at Rs 2.34 lakh crore and Rs 47,267 crore, respectively.
Telangana’s Gross State Domestic Product (GSDP) exhibited a growth rate of 10.7% in 2025-26, surpassing the national growth rate of 8%. The state’s GSDP, at current prices, stands at Rs 17,82,198 crore. Vikramarka highlighted that Telangana’s growth rate outpaces the national average by 2.7%, with its GSDP contributing 5.0% to the national GDP.
The Finance Minister emphasized that despite India’s growth rate declining to 8% from 9.8% in 2024-25, Telangana’s GSDP growth rate rose from 10.6% to 10.7% during the same period. In 2025-26, Telangana’s per capita income reached Rs 4,18,931, reflecting a growth rate of 10.2%, significantly higher than the national per capita income of Rs 2,19,575.
Telangana aims to elevate its economy from 200 billion US dollars to one trillion US dollars by 2034 and three trillion US dollars by 2047. The government is formulating sector-specific plans to achieve these ambitious targets. Vikramarka underscored the budget’s focus on sustainable development, prioritizing farmer welfare, women’s empowerment, youth employment, quality education, healthcare, nutritious food for students, and infrastructure enhancement.
The Finance Minister disclosed that the state grappled with financial challenges due to excessive borrowings in the past. To alleviate this burden, loans amounting to Rs 25,612 crore, acquired at high interest rates by the previous administration, were restructured at lower rates. This restructuring reduced the state’s cash outflow by Rs 22,142 crore, providing liquidity relief and paving the way for economic stability.
