Telangana budget gets outlay of Rs 3.24 lakh crore; sets sights to achieve $3 trillion economy by 2047

Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka presented the 2026-27 State Budget in the Assembly on Friday, proposing a total outlay of Rs 3,24,234 crore.

This includes revenue expenditure of Rs 2,34,406 crore and capital expenditure of Rs 47,267 crore, with around Rs 50,713 crore allocated for the Congress government's flagship 'Six Guarantees' social welfare schemes.

While presenting the budget, Vikramarka highlighted that in the financial year 2025–26, Telangana’s Gross State Domestic Product (GSDP), at current prices, is Rs.17,82,198 crore.

Compared to the previous year, the growth rate has been recorded at 10.7 per cent. During the same period, the country’s GDP stood at Rs.3,57,13,886 crore, with a growth rate of 8 per cent. Telangana’s growth rate is 2.7 per cent higher than the national average growth rate.

Likewise, the State’s GSDP accounts for 5 per cent of the national GDP, making Telangana a strong growth engine for the country.

“Although India’s growth rate is slowing down, our State’s growth rate is showing better improvement. At current prices, the national GDP growth rate, which was 9.8 per cent in 2024–25, declined to 8 per cent by 2025–26. But during the same period, Telangana State’s GSDP growth rate increased from 10.6 per cent in 2024–25 to 10.7 per cent in 2025–26. This is evidence that the policies being implemented by our Government are moving in the right direction and are contributing to development. The per capita income of the state has increased significantly. In the financial year 2025–26, at current prices, the State’s per capita income stood at Rs.4,18,931, with a growth rate of 10.2 per cent. The national per capita income stood at Rs.2,19,575, while the growth rate was only 6.9 per cent. Compared to the national per capita income, Telangana’s per capita income is higher by Rs.1,99,356. That is, it is 1.9 times higher. We have set for ourselves a great goal of transforming the economy, which is currently at 200 billion US dollars, into a 1 trillion US dollar economy by 2034 and into a 3 trillion US dollar economy by 2047. To achieve this objective, we are preparing special sector-wise plans,” said Vikramarka.

He also said that the Congress government in the state was successful in getting more funds under centrally sponsored schemes.

“In the spirit of cooperative federalism, while maintaining cordial relations with the Central Government for the development of our State, the funds received by the State through Centrally Sponsored Schemes (CSS) were Rs.4,826 crore in 2021-22, whereas our Government has secured Rs.7,072 crore so far in this financial year. The State Government is sincerely striving to continue this momentum and secure still more funds,” he added.

Tax devolution increased

The state deputy chief minister also claimed that the state's share in devolution of taxes has increased.

“While we contribute thousands of crores of rupees every year to the Centre in the form of taxes, what we receive back through tax devolution from the Centre is, on average, 42 paise for every rupee we pay. Serious injustice has been continuing through this distribution to States that are controlling population, increasing their own revenues, and standing as the backbone of the national economy. To rectify this historical imbalance, our Government forcefully presented its case before the 16th Finance Commission. As a result, our Government succeeded in persuading it to consider not only factors such as population and income distance in the tax devolution formula, but also ‘State GSDP’ as a key parameter. Through this, Telangana’s share has been increased from 2.102 per cent to 2.174 per cent,” he said.

Vikramarka said that while rectifying the financial and systemic destruction caused by the previous government, and even as his government continued to repay old debts and the interest on them, brought administration back on track.

"While maintaining fiscal discipline, we are making every possible effort to fulfil the promises made to the people," he said.