Hyderabad: Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu presented the Telangana State Budget for 2025-26 in the Assembly on Wednesday, unveiling a Rs 3,04,000 crore financial roadmap aimed at driving economic growth, strengthening social welfare, and building infrastructure for long-term progress.
While presenting the budget, Bhatti emphasised that Telangana’s economy continues to demonstrate strong resilience, with the Gross State Domestic Product (GSDP) for 2024-25 reaching Rs 16,12,579 crore, marking a 10.1% growth rate, surpassing the national GDP growth of 9.9%. He stated that the state’s per capita income has now risen to Rs 3,79,751, which is Rs 1,74,172 higher than the national average of Rs 2,05,579, reflecting Telangana’s robust economic trajectory.
During his speech, Bhatti highlighted the government’s commitment to balancing development and welfare, ensuring that economic growth reaches every section of society. He noted that the service sector contributes 66.3% to Telangana’s Gross State Value Added (GSVA), making it the dominant force in the economy, while agriculture and allied sectors contribute 17.3%, despite employing 42.7% of the workforce. The industrial sector accounts for 16.4%, with the government making targeted interventions to transform Telangana into a global manufacturing hub.
Bhatti asserted that the government remains steadfast in its commitment to farmers’ welfare, as demonstrated by a historic farm loan waiver of Rs 20,616.89 crore, benefiting 25.35 lakh farmers. Under the Rythu Bharosa scheme, the government has allocated Rs 18,000 crore to provide Rs 12,000 per acre annually as investment support for farmers. Additionally, he announced a Rs 500 per quintal bonus for fine rice procurement, which has resulted in a significant increase in fine rice cultivation from 25 lakh acres to 40 lakh acres, ensuring higher returns for Telangana’s farmers.
Announcing a significant push towards welfare programs, Bhatti stated that the Abhayahastam scheme continues to be the backbone of Telangana’s social security initiatives. He emphasised that under the Mahalakshmi scheme, free bus travel for women has led to 149.63 crore free trips, saving Rs 5,005.95 crore for women commuters across the state. Similarly, the Gruha Jyothi scheme, which provides free electricity for up to 200 units, has benefited 50 lakh families, with the government earmarking Rs 1,775.15 crore for its continued implementation. Housing also remains a key priority, with Bhatti revealing that under the Indiramma Housing Scheme, 4.5 lakh houses have been sanctioned, with ownership granted in the name of women, at a total investment of Rs 22,500 crore.
In a strong push to generate employment and industrial growth, Bhatti announced Rs 4,000 crore for the MSME sector, aiming to establish 25,000 new enterprises. He emphasised that Telangana is emerging as an investment hub, with Rs 1.78 lakh crore in global investments secured during the World Economic Forum in Davos. He also detailed the Mega Master Plan 2050, which envisions the expansion of industrial clusters beyond Hyderabad, ensuring that all districts benefit from economic development. He further announced the establishment of Greenfield Pharma Clusters in Ranga Reddy and Mahbubnagar, strengthening Telangana’s presence in the global pharmaceutical industry.
Presenting a vision for Hyderabad’s future, Bhatti introduced the H-CITI initiative, which includes the construction of 31 flyovers, 17 underpasses, and 10 road expansion projects, with an estimated cost of Rs 7,032 crore. He also announced the Future City project, India’s first Net-Zero city, covering 765 sq. km, which will include AI City, Pharma Hub, Sports City, and a Clean Energy Innovation Zone.
Addressing renewable energy and power infrastructure, Bhatti reiterated the government’s Clean & Green Energy Policy 2025, which targets 40,000 MW of renewable energy generation by 2035. He announced the establishment of a 250 MW Battery Energy Storage System in Shankarpally to ensure power stability. He also confirmed that the Yadadri Thermal Power Plant (YTPS), which had faced administrative delays, has now commenced power generation in two units, with the remaining three units set to be operational by May 2025. In a first-of-its-kind initiative in India, he launched the Electricity Ambulance Service, which will quickly respond to power supply issues across Hyderabad.
On education and youth empowerment, Bhatti stated that the government has sanctioned Rs 11,600 crore for the establishment of 58 Young India Integrated Residential Schools, ensuring high-quality education for underprivileged students. He also highlighted that the Young India Skill University, built on 150 acres in Mucharla, will generate 30,000 jobs annually. The Rajiv Yuva Vikasam scheme, with a Rs 6,000 crore allocation, will provide self-employment opportunities, offering Rs 4 lakh financial assistance per beneficiary, benefiting SC, ST, BC, and minority youth.
Bhatti also announced key allocations for minority and backward class (BC) welfare, stating that the government is committed to ensuring economic and social security for all sections of society. He revealed an allocation of Rs 3,591 crore for the Minority Welfare Department, which includes funds for minority residential schools under the Young India initiative, self-employment schemes, and Hajj pilgrimage support. Additionally, the Backward Classes Welfare Department has received Rs 11,405 crore, supporting entrepreneurship, education, and financial empowerment for BC communities.
The budget also makes significant investments in healthcare and irrigation. Bhatti announced that under the Aarogyasri scheme, the medical coverage limit has been raised from Rs 5 lakh to Rs 10 lakh, benefiting 90.10 lakh families. He also revealed that 1,835 medical procedures are now covered under the scheme, expanding access to quality healthcare for the underprivileged. In the irrigation sector, he highlighted the Udaya Samudram–Brahmana Velamala Lift Irrigation Project, which aims to irrigate one lakh acres and provide drinking water to 107 fluoride-affected villages. He also noted that the Bunadigani Canal restoration project, with an allocation of Rs 266.65 crore, will enhance irrigation infrastructure in Yadadri district.
Reaffirming the government’s commitment to women’s empowerment, Bhatti announced that Rs 21,632 crore in interest-free loans have been disbursed to Self-Help Groups (SHGs), facilitating the establishment of 2.25 lakh micro-enterprises. Bhatti emphasised that the Rs 3.04 lakh crore budget is a comprehensive roadmap for Telangana’s future, ensuring that economic growth, welfare, and social equity remain the government’s top priorities. With record allocations of Rs 40,232 crore for SC Welfare, Rs 17,169 crore for ST Welfare, Rs 23,373 crore for irrigation, Rs 31,605 crore for rural development, Rs 12,393 crore for healthcare, Rs 3,591 crore for minority welfare, and Rs 11,405 crore for BC welfare, the government has reinforced its commitment to inclusive growth and sustainable development. (INN)