Telangana Steps Up Welfare Spend In Budget
The ₹3.24 lakh crore Budget projects a total revenue expenditure of ₹2.34 lakh crore and a capital expenditure of ₹47,267 crore, marking an increase of over 20 per cent compared to the current financial year 2025–26.
Hyderabad: Setting a new record, the Congress government led by Chief Minister A Revanth Reddy has introduced nine new schemes in the Budget 2026-27, which was presented by finance minister deputy chief minister Mallu Bhatti Vikramarka in the Legislative Assembly on Friday. The new schemes are aimed at benefiting a wide cross-section of society, including students, senior citizens, government employees and pensioners.
The ₹3.24 lakh crore Budget projects a total revenue expenditure of ₹2.34 lakh crore and a capital expenditure of ₹47,267 crore, marking an increase of over 20 per cent compared to the current financial year 2025–26. Revenue receipts for 2026-27 are estimated at ₹2.41 lakh crore, reflecting a nearly 20 per cent rise from ₹2.03 lakh crore in the current fiscal.
The Budget estimates a revenue surplus of ₹6,857 crore and a fiscal deficit of ₹58,458 crore. The government proposed to raise ₹73,383 crore through open market loans to bridge the fiscal deficit.
As part of the nine new schemes, the government will roll out the Indiramma Family Life Insurance Scheme, providing `5 lakh life insurance coverage to each of the state’s 1.15 crore families, with an allocation of Rs. 4,000 crore. Under the Cheyutha social security pensions, two lakh new pensions will be sanctioned with a provision of ₹14,861 crore.
In the education sector, selected government institutions will be upgraded into Telangana Public Schools with modern infrastructure, digital facilities and transport systems, supported by ₹500 crore. Additionally, a breakfast scheme will be introduced from the 2026-27 academic year for students from pre-primary to intermediate, with ₹800 crore earmarked, while the midday meal scheme will be extended to intermediate students with a budget of ₹100 crore in addition to school students from Class I to X.
For government employees and pensioners, the government announced a cashless health protection scheme covering 23.51 lakh beneficiaries through the Rajiv Aarogyasri Trust, offering treatment for 1,998 diseases in government and 421 empanelled private hospitals. Each beneficiary will be issued a digital health card. Complementing this, a first-of-its-kind Employees’ Accident Insurance Scheme will provide ₹1.2 crore compensation in case of accidental death, ₹10 lakh term life coverage up to 60 years of age, and ₹2 crore compensation for death in air accidents, covering 7.57 lakh employees and pensioners. A combined allocation of `1,056 crore has been made for these initiatives.
To boost global employment opportunities, the government will launch the CM Overseas Employment Programme, offering skill and language training, visa assistance and travel support, with job placements in sectors such as healthcare, hospitality, construction and logistics. Another ₹1,056 crore has been earmarked for this initiative. Trainees undergoing training in Advanced Technology Centres (ATCs), the upgraded version of ITIs, will receive a monthly scholarship of ₹2,000, with ₹80 crore allocated for the scheme.
Live Updates
- 20 March 2026 1:21 PM IST
Telangana Focuses on Naxal Rehabilitation Through Welfare
- 732 Maoists surrendered since December 2023
- Shift from force-based approach to welfare model
The Telangana government has adopted a welfare-driven approach to tackle Naxalism, focusing on livelihood and social integration. Since December 2023, 732 Maoists have surrendered, significantly higher than previous years.
The government emphasised that addressing socio-economic inequalities is key to ending extremism.
- 20 March 2026 1:21 PM IST
Home Department Strengthened; Anti-Drug Drive Intensified
- Special anti-drug force EAGLE cracks down on narcotics
- De-addiction centres and youth awareness programmes launched
- ₹11,907 crore allocated for Home Department
The Telangana government is intensifying law enforcement with the formation of EAGLE, which has dismantled 15 illegal drug units. Surveillance has been strengthened with inter-state check-posts and forensic labs.
Awareness is being spread through thousands of anti-drug committees and student clubs. The government has allocated ₹11,907 crore to strengthen policing and internal security.
- 20 March 2026 1:20 PM IST
Hyderabad Metro Expansion & Musi Rejuvenation Get Major Push
- Metro Phase II, III to expand to Old City, airport
- Musi River rejuvenation planned over 55 km stretch
- ₹17,907 crore allocated for urban development
The Telangana government has announced expansion of the Hyderabad Metro Rail, which currently serves around 5 lakh passengers daily. Plans are in place to extend connectivity to the Old City, Shamshabad Airport, and beyond Hitec City under Phase II and III.
A major rejuvenation plan for the Musi River will cover 55 km, including river cleaning, flood control, and riverfront development. The Gandhi Sarovar is also being developed. The government has allocated ₹17,907 crore for Municipal Administration and Urban Development.
- 20 March 2026 1:17 PM IST
Telangana Pushes Urban Development, ₹2,654 Crore for Hyderabad Infrastructure
- ‘H-CITI’ scheme to upgrade city infrastructure
- Godavari Drinking Water Project and 39 STPs underway
- GHMC loan interest reduced, easing financial burden
- Focus on developing all towns on par with Hyderabad
Hyderabad, March 20: The Telangana government has announced a major push for urban development, with a focus on strengthening infrastructure and improving civic services across cities and towns.
As part of the initiative, ₹2,654 crore has been allocated under the H-CITI scheme to upgrade infrastructure in Hyderabad.
The government is also advancing key projects including the Godavari Drinking Water Project, construction of new reservoirs, and 39 sewage treatment plants to enhance water supply and sanitation in the Hyderabad Metropolitan Region.
In a financial relief measure, the interest rate on loans of the Greater Hyderabad Municipal Corporation has been reduced from 9.15% to 7.95%, easing the burden on the civic body.
The government said it aims to make Hyderabad comparable to global cities while also ensuring that other towns and cities in Telangana develop at a similar pace.
- 20 March 2026 1:16 PM IST
Telangana Strengthens Judicial Infrastructure, ₹2,367 Crore Allocated
- ₹2,583 crore for new High Court buildings and judges’ quarters
- Approval for 11 district courts, 48 lower courts
- Focus on “Speedy Justice — Equal Justice”
The Telangana government has allocated ₹2,367 crore for the Law Department, with a focus on strengthening judicial infrastructure and ensuring faster delivery of justice.
As part of the initiative, modern High Court buildings and residential quarters for judges are being constructed at a cost of ₹2,583 crore, aimed at enhancing judicial capacity and efficiency.
The government has also approved the establishment of 11 additional district courts, along with 2 Senior Civil Judge courts and 46 Junior Civil Judge courts across the State.
- 20 March 2026 1:15 PM IST
Telangana Allocates ₹12,789 Crore for Transport, Roads & Infrastructure
- ₹856.98 crore tax relief for electric vehicles to boost green mobility
- Digital services ‘Sarathi’ and ‘Vahan’ to be fully implemented
- Regional Ring Road and Rail projects planned around Hyderabad
- Warangal Airport works to be accelerated
The Telangana government has proposed an allocation of ₹12,789 crore for the Transport, Roads, and Buildings Department, focusing on infrastructure expansion, digitalisation, and sustainable mobility.
The State currently has 1.82 crore registered vehicles. Tax exemptions worth ₹105.16 crore have been extended to agricultural and three-wheeler vehicles, while incentives of ₹856.98 crore have been provided to over 1.06 lakh electric vehicles under the EV policy to promote eco-friendly transport.
Digital transformation is also underway with the rollout of Sarathi and Vahan, developed by the National Informatics Centre, with full implementation of Vahan expected within six months.
On infrastructure, the government plans to develop roads under the Hybrid Annuity Mode, alongside major projects like the Regional Ring Road and a parallel Regional Ring Rail around Hyderabad.
In aviation, land acquisition for Warangal Airport will be completed soon, while the master plan for Adilabad Airport is nearing finalisation.
- 20 March 2026 1:13 PM IST
Telangana Allocates ₹22,615 Crore for Irrigation
- Major push to complete pending lift irrigation projects
- Desiltation drive to restore reservoir capacity
- Renewed focus on Pranahita-Chevella project
- Efforts to secure Telangana’s share in Krishna, Godavari waters
The Telangana government has earmarked ₹22,615 crore for the Irrigation Department, prioritising completion of ongoing projects and restoration of water resources.
The State is accelerating works on major irrigation projects including the Palamuru-Rangareddy Lift Irrigation Scheme, Kalwakurthy Lift Irrigation Scheme, Nettempadu Lift Irrigation Scheme, and Devadula Lift Irrigation Scheme, among several others.
The government also announced plans to revive the Pranahita-Chevella Project in the erstwhile Adilabad district, aiming to correct delays from previous years.
To improve water storage capacity, a large-scale desiltation drive will be undertaken in key reservoirs such as Sriramsagar Project, Nagarjunasagar, and Jurala, following national guidelines.
The government said it is also actively pursuing Telangana’s rightful share of Krishna and Godavari river waters through legal and institutional channels.
- 20 March 2026 1:12 PM IST
Telangana Prioritises Rural Development, ₹33,688 Crore Allocated
- 7,450 km rural roads planned under HAM model
- ₹1,597 crore released after Gram Panchayat elections
- Continued focus on employment through MGNREGA
- Training provided to over 12,700 Sarpanches
The Telangana government has allocated ₹33,688 crore for Panchayat Raj and Rural Development, with a strong focus on rural infrastructure, employment, and local governance.
Following the successful conduct of elections to 12,702 Gram Panchayats in December 2025, the State received ₹1,597 crore under the 15th Finance Commission recommendations. The government also conducted training programmes for newly elected Sarpanches to strengthen grassroots governance.
The State reiterated its commitment to the Mahatma Gandhi National Rural Employment Guarantee Act, describing it as a crucial employment guarantee programme that has reduced migration and empowered rural women.
On infrastructure, Telangana is set to undertake large-scale road development under the Hybrid Annuity Mode (HAM). In the first phase, 7,450 km of rural roads across 96 Assembly constituencies will be developed, with 2,980 km targeted in the current financial year at a cost of ₹1,372 crore.
The government also raised concerns over proposed changes to MGNREGA funding patterns, stating that reduced central support could impact rural livelihoods, especially among SC, ST, and BC communities.
- 20 March 2026 1:10 PM IST
Telangana Boosts Handloom Sector with ₹258 Crore Allocation
The Telangana government has allocated ₹258 crore for the handloom sector, aiming to support traditional weavers and promote the State’s rich textile heritage.
Iconic handloom products such as Pochampally Ikat, Gadwal sarees, Narayanpet sarees, Siddipet Gollabhama sarees, and Warangal durries continue to represent the cultural identity of the State.
Under the One Crore Sarees for One Crore Women programme, the government is distributing free sarees to women across the State. So far, around 70 lakh sarees have been distributed, with the remaining to be completed soon.
- 20 March 2026 1:09 PM IST
Telangana Industrial Growth Gets ₹3,490 Crore Boost
- Industrial sector contributes ₹3.04 lakh crore to GSDP
- ‘SPEED’ division set up to fast-track investments
- Kodangal to emerge as new industrial hub
- ₹1.61 lakh crore exports; aerospace sector leads
Hyderabad, March 20: The Telangana government has allocated ₹3,490 crore for the industrial sector, aiming to accelerate growth, attract investments, and boost employment.
The sector currently contributes ₹3.04 lakh crore to the State’s GSDP, with Telangana emerging as a preferred destination for global investments. To streamline industrial approvals and monitor MoUs, the government has set up the SPEED division under the Chief Secretary.
Under the Raising and Accelerating MSME Performance (RAMP) initiative, special focus is being given to women-led enterprises, including those from marginalised communities, with incubation and pre-incubation programmes across all 33 districts.
The government is also planning to develop the Kodangal region as a major industrial hub, including a Multipurpose Industrial Park near the upcoming Radial Road-II. Additionally, the Zaheerabad Industrial Smart City is being developed over 3,245 acres under the National Industrial Corridor Development Programme.
Telangana’s exports have reached ₹1,61,843 crore, ranking 7th in the country, with aerospace and defence sectors contributing nearly 30%. The State has also been recognised as a “Top Achiever” in Ease of Doing Business.
At the recent Bio-Asia International Conference, investors showed interest in projects worth ₹1,700 crore. Meanwhile, the WE-Hub continues to support over 700 women entrepreneurs across the State.
