Telangana: Dy CM presents Rs3.04 lakh crore Budget for 2025-26

Telangana Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Finance portfolio, presented the budget for the financial year 2025-26 in the Legislative Assembly on Wednesday, with an outlay of Rs 3.04 lakh crore. For the year 2025-26, Bhatti proposed a total expenditure of Rs 3,04,965 crore, with Rs 2,26,982 crore allocated for revenue expenditure and ₹ 36,504 crore for capital expenditure. "The Congress government is working towards transforming Telangana into a 1,000 billion dollar economy in 10 years. At present, the size of our state economy is 200 billion dollars," said Deputy Chief Minister Mallu Bhatti Vikramarka on Wednesday. Bhatti also said that the government is already effectively implementing several schemes like Mahalakshmi, Rythubharosa, Gruha Jyothi, Indiramma Indlu, and pension distribution under Cheyutha.
A major highlight of the budget is the Mega Master Plan 2050 for industrial development, which includes the establishment of greenfield industrial clusters in Ranga Reddy and Mahbubnagar districts. To ease urban congestion, the government has announced the construction of 31 flyovers and 17 underpasses at a cost of Rs 7,032 crore under the HICITI initiative.On the economic front, Telangana’s Gross State Domestic Product (GSDP) at current prices has registered a 10.1% growth, reaching Rs 16,12,579 crore in 2024-25. The budget reflects the state government’s focus on industrial expansion, urban and rural infrastructure development, and social welfare programs, aiming for holistic economic progress.
As part of the Future City initiative, the Telangana government is developing a state-of-the-art AI City spread across 200 acres, aiming to establish it as a global hub for AI innovation and enterprise.This AI City will host leading multinational corporations, driving advancements in artificial intelligence and technology. In a major boost to the project, Google has committed to setting up an AI-powered Accelerator Center within the AI City, marking a significant milestone in Telangana’s digital transformation. Announcing the development, Deputy Chief Minister Mallu Bhatti Vikramarka also proposed an allocation of Rs 774 crore for the Information Technology Department to support the initiative.