Bhatti To Present Largest Budget Ever in Telangana

Deputy Chief Minister and finance minister Mallu Bhatti Vikramarka will begin pre-Budget consultative meetings with departments from Saturday, which will continue until February 5.

These discussions are aimed at assessing departmental requirements, reviewing ongoing schemes and finalising financial allocations ahead of the presentation of the Budget in the Assembly likely during the first week of March.

The proposed size of the Budget indicates a steady expansion in the government spending. In 2025-26, Bhatti had presented a Budget with a total outlay of Rs 3.04 lakh crore, which was the first time Telangana crossed the Rs 3 lakh crore threshold. The forthcoming Budget is likely to push the outlay further, despite concerns over the pace of expenditure in the current financial year.

According to figures submitted by the state government to the Comptroller and Auditor General of India (CAG), total expenditure for 2025-26 has been pegged at Rs 2.63 lakh crore, which is  Rs 41,000 crore lower than the original Budget Estimates of Rs 3.04 lakh crore.

This downward revision reflects a more conservative assessment of actual spending capacity. Even within this reduced estimate, expenditure up to the end of December stood at Rs 1,77,204 crore, accounting for 67.25 per cent of the total.

With only three months remaining in the current fiscal, the government still has to bridge a gap of 32.75 per cent, raising questions about how much of the targeted spending can realistically be achieved by the end of March.

Despite this gap, the state government remains confident about expanding the budget size for 2026-27. Officials believe that revenue and non-revenue collections will improve substantially, providing a stronger financial base for higher allocations.

The government has observed a positive trend in collections since December 2025, particularly from the stamps and registrations department, driven by increased property transactions. Improved inflows from Goods and Services Tax, excise duties, mining revenues and land sales have also contributed to this optimism.

As per the CAG report, revenue receipts up to December 2025-26 stood at   Rs 1,24,911.19 crore, which is 54.38 per cent of the Budget Estimates of Rs 2,29,720.63 crore. Tax revenues formed the bulk of these receipts at Rs 1,13,985.07 crore, accounting for 65.02 per cent of the BE of Rs 1,75,319.36 crore. Non-tax revenues were comparatively modest at Rs 7,120.53 crore, representing 22.52 per cent of the budget estimates of Rs 31,618.77 crore.