The Telangana government is preparing to present its budget for the year 2025-26 in the Legislative Assembly on Wednesday. Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka will announce the budget around noon. Officials are finalizing the details, ensuring that financial resources are available for ongoing welfare programs while also managing the state’s financial commitments.
Although the actual budget figures will be revealed during the presentation, experts predict that the total expenditure could exceed ₹3 lakh crore for the first time, possibly reaching ₹3.2 lakh crore. Earlier, on March 12, Governor Jishnu Dev Varma hinted at a significant increase in spending, stating that every financial decision reflects the hopes of the people.
Despite the ambitious plans, Telangana’s revenue collection has fallen short of expectations. According to provisional data from the Comptroller and Auditor General of India, the state had collected ₹1.82 lakh crore by the end of January. This is only 66.57% of the targeted ₹2.74 lakh crore for the financial year 2024-25. A significant portion of the funds so far has come from loans and liabilities, which have already exceeded initial estimates.
To manage cash flow, the government has been relying on short-term financial support from the Reserve Bank of India. In December, the state used special drawing facilities and ways and means advances extensively to cover its expenses.
Looking forward, the government is hopeful that revenue will improve in the next financial year. Plans to auction 400 acres of prime land in Kancha Gachibowli and issue new retail liquor licenses are expected to generate substantial income. However, since there is little room to increase taxes, the challenge remains to maintain steady revenue while continuing development initiatives.
As the state presents its financial plan, all eyes will be on how the government balances spending commitments with sustainable income. The focus will be on ensuring continued progress while managing economic challenges effectively.
