Telangana State Budget 2025-26 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Telangana FY 2025-26
Telangana State Budget 2025-26 Budget at a Glance
Total Receipts
Rs 2.31 lakh crore
+4.3%
Total Expenditure
Rs 2.85 lakh crore
-2.2%
Fiscal Deficit
3.0%
Rs 54,010 crore
Capital Expenditure
Rs 56,747 crore
+69.5%
Tax Revenue
Rs 1.5 lakh crore
+8.6%
Interest Payments
Rs 22,010 crore
8% of expenditure
Telangana Revenue Receipts 2025-26
Own tax revenue vs non-tax revenue breakdown
Telangana Expenditure Breakdown 2025-26
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Telangana 2025-26
The fiscal deficit for Telangana in 2025-26 is 3.0% of GSDP (Rs 54,010 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Telangana is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 22,010 crore consume 7.7% of total expenditure.
Telangana State Budget 2025-26 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 3.39 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.31 lakh crore | 68.1% |
| a. Own Tax Revenue | Rs 1.5 lakh crore | 44.3% |
| b. Non-Tax Revenue | Rs 30,000 crore | 8.9% |
| B. Total Expenditure | Rs 2.85 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.28 lakh crore | 80.1% |
| 2. Capital Expenditure | Rs 56,747 crore | 19.9% |
| of which: Interest Payments | Rs 22,010 crore | 7.7% |
| C. Fiscal Deficit | Rs 54,010 crore | 3.0% of GSDP |
Source: Telangana State Budget Documents via PRS India. All figures in Indian Rupees.
Telangana Department-wise Expenditure 2025-26
Top departments by allocation in Telangana for 2025-26
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education | Rs 28,000 crore | Rs 4,000 crore | Rs 32,000 crore | 11.2% |
2. Agriculture & Allied | Rs 18,000 crore | Rs 4,000 crore | Rs 22,000 crore | 7.7% |
3. Health & Family Welfare | Rs 16,000 crore | Rs 3,500 crore | Rs 19,500 crore | 6.8% |
4. Rural Development | Rs 14,000 crore | Rs 5,500 crore | Rs 19,500 crore | 6.8% |
5. Transport & Roads | Rs 7,000 crore | Rs 10,000 crore | Rs 17,000 crore | 6.0% |
6. Energy | Rs 12,000 crore | Rs 5,000 crore | Rs 17,000 crore | 6.0% |
7. Social Welfare | Rs 15,000 crore | Rs 2,000 crore | Rs 17,000 crore | 6.0% |
8. Urban Development | Rs 10,000 crore | Rs 6,000 crore | Rs 16,000 crore | 5.6% |
9. Water Resources & Irrigation | Rs 6,000 crore | Rs 9,000 crore | Rs 15,000 crore | 5.3% |
10. Police & Home | Rs 11,000 crore | Rs 2,500 crore | Rs 13,500 crore | 4.7% |
Telangana Budget 2025-26 Analysis & Highlights
Key Highlights
- Total expenditure budgeted at Rs 2,91,411 crore, a 12% increase reflecting the Congress government priorities.
- Fiscal deficit estimated at Rs 49,255 crore at 2.8% of GSDP โ within FRBM limits.
- Revenue surplus achieved for the first time in three years, signalling fiscal consolidation.
- Hyderabad IT corridor and pharma hub drive strong tax revenue growth of 14%.
- Capital expenditure at Rs 39,468 crore targets metro expansion, irrigation, and affordable housing.
- Rythu Bharosa farmer investment support scheme continued at Rs 7,500 crore.
- Education allocation at Rs 28,000 crore includes university expansion and skill development.
- Health spending at Rs 18,500 crore with focus on Rajiv Aarogyasri 2.0 expansion.
- Outstanding debt at Rs 3,65,000 crore with debt-to-GSDP ratio of 20.6%.
- Interest payments at Rs 26,500 crore represent 12.4% of revenue receipts.
- IT sector GSDP contribution exceeds 15%, making Telangana the most IT-dependent large state.
Compare Telangana Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.91 lakh crore | Rs 2.85 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 2.21 lakh crore | Rs 2.31 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 33,487 crore | Rs 56,747 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.0% | 3.0% |
| Own Tax Revenue | โ | โ | โ | Rs 1.38 lakh crore | Rs 1.5 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Telangana State Budget 2025-26
The Telangana state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Telangana Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Telangana with other states
Side-by-side comparison of fiscal metrics across Indian states