Hyderabad: Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Wednesday presented a budget of Rs 3.04 lakh crore for 2025-26.
Presenting the second full-fledged budget of the Congress government in the state Assembly, he pegged the revenue and capital expenditure at Rs 2.26 lakh crore and capital expenditure at Rs 36,504 crore respectively.
“For the fiscal year 2025-26, I am proposing a total expenditure of Rs 3,04,965 crore, with revenue expenditure of Rs 2,26,982 crore and capital expenditure of Rs 36,504 crore,” he said.
In July last year, the Finance Minister presented a Rs 2.91 lakh crore budget for 2024-25.
Telangana’s Gross State Domestic Product (GSDP) recorded a growth rate of 10.1 per cent during 2024-25 against the national growth rate of 9.9 per cent. At current prices, Telangana’s GSDP stands at Rs 16,12,579 crore.
The per capita income of Telangana in 2024-25 was Rs 3,79,751 crore, with a growth rate of 9.6 per cent. “In comparison, India’s per capita income is Rs 2,05,579, with a growth rate of 8.8 per cent. Clearly, Telangana’s per capita income is higher by 1.8 times, i.e., Rs 1,74,172. Reflecting the state’s strong economic progress,” he said.
In 2024-25, the Services Sector contributed 66.3 per cent, the Agriculture and allied sectors contributed 17.3 per cent and the Industrial Sector 16.4 per cent to Telangana’s Gross State Value Added (GSVA).
“Government initiatives such as free electricity, Rythu Bharosa, farm loan waivers, and investments in irrigation projects have boosted farmers’ confidence and strengthened the agricultural sector. At the same time, to further enhance the agriculture sector, we are actively promoting horticulture, animal husbandry, and aquaculture, ensuring diversified and sustainable growth for farmers.”
The industrial sector in Telangana provides employment to 22.5 per cent of the workforce. By adopting the “China +1” strategy, the government aims to develop Telangana into a global manufacturing hub in key sectors such as pharmaceuticals, biotechnology, electric vehicles, and renewable energy.
The Finance Minister said the Telangana government has already expressed concern over the declining share of tax devolution for Southern states, including Telangana. Under the 14th Finance Commission, Telangana received 2.437 per cent of funds, which declined to 2.102 per cent under the 15th Finance Commission. “Our government represented that allocating fewer funds to well-performing states is unfair and advocated a more rational tax distribution system that incentivizes states contributing significantly to the nation’s economic growth,” he said.
The state government has proposed reforms in the horizontal tax devolution, suggesting a shift away from the current “Per Capita Income Distance” criterion. Instead, it recommends assigning 50 per cent weightage to GSDP (Gross State Domestic Product) to ensure a more equitable allocation of resources for states driving national economic growth, he said.
Stating that over the past decade, Telangana suffered numerous challenges, he said it was now progressing on the path of development.
With the ‘Telangana Rising 2050 vision’, the government is shaping its policies and programmes to drive sustainable progress. “Our strategic roadmap for the next decade envisions a five-fold expansion of the current $200 billion state economy into a trillion-dollar economy,” he added.
(IANS)
