Hyderabad, Telangana — The Telangana state government has presented its much-anticipated budget for the fiscal year 2025, with a total outlay of ₹3.04 lakh crore. The budget aims to provide a strong fiscal framework for economic growth, infrastructure development, and a strong focus on social welfare. Chief Minister K. Chandrashekar Rao (KCR), along with Finance Minister T. Harish Rao, outlined a comprehensive plan that promises to address the state’s needs across various sectors, including agriculture, education, health, infrastructure, and social welfare.
A Historic Outlay for Telangana
This ₹3.04 lakh crore budget marks a significant increase over the previous years, with the Telangana government positioning itself to maintain a steady trajectory of growth despite challenges posed by the global economy and regional issues. The increase in the budgetary allocation comes as the state continues to implement its ambitious welfare programs while striving to bolster its economic potential.
The government’s approach is characterized by its dual focus on infrastructure development and upliftment of marginalized sections of society, specifically through extensive social welfare programs. The overarching objective is to achieve sustainable economic growth while ensuring equitable benefits for all sections of the population.
Key Highlights of the Telangana Budget 2025
1. Infrastructure Development
A major portion of the budget will be allocated to infrastructure development. With ₹56,000 crore earmarked for this sector, the state is setting ambitious goals to enhance urban and rural infrastructure. The focus will be on improving roads, highways, and public transportation systems. Key projects include the expansion of the Hyderabad Pharma City, the development of a comprehensive road network in rural areas, and the construction of new flyovers and bridges to ease traffic congestion.
Furthermore, the government has announced a ₹20,000 crore allocation for the expansion and modernization of the state’s irrigation network. This is in line with the state’s ongoing efforts to improve agricultural productivity and ensure water availability for farmers through the Kaleshwaram Lift Irrigation Scheme and other projects.
2. Agriculture and Rural Development
Agriculture remains a cornerstone of Telangana’s economy, and the state government has allotted ₹35,000 crore to strengthen the sector. The focus will be on the improvement of irrigation facilities, support for farm mechanization, and increasing access to credit for farmers. Additionally, new crop insurance schemes and subsidies for input costs, such as fertilizers and pesticides, will be introduced to mitigate risks faced by farmers due to weather conditions.
The government also plans to introduce innovative initiatives such as smart farming practices and the promotion of organic farming to ensure long-term sustainability for the agrarian community. In this budget, ₹10,000 crore has been allocated for rural development projects aimed at improving living conditions and empowering rural populations.
3. Social Welfare Initiatives
One of the standout features of Telangana’s 2025 budget is its continued emphasis on social welfare. With a commitment of ₹52,000 crore for welfare schemes, the budget aims to build on the success of initiatives like Rythu Bandhu (farmer investment support), KCR Kits (for maternal and child health), and the Kalyana Lakshmi scheme (which provides financial assistance for the marriage of daughters from economically weaker families).
The state government has also introduced a new initiative, the Telangana Welfare Pension Scheme, which aims to provide a financial safety net to senior citizens, widows, and differently-abled individuals. An allocation of ₹6,000 crore has been made for this welfare scheme alone. The government has set aside ₹5,500 crore for the education sector, which includes improving the infrastructure of schools, enhancing the quality of education, and promoting skill development programs for youth.
Moreover, the state will continue its focus on healthcare with ₹8,000 crore allocated to enhance the capabilities of public health facilities, strengthen primary healthcare infrastructure, and provide affordable medical care to all residents, especially in rural areas. The state also plans to construct new medical colleges and expand the health insurance coverage for economically disadvantaged sections.
4. Education and Employment Generation
The budget for education has been given a major boost with ₹9,500 crore dedicated to enhancing the state’s educational infrastructure. A significant portion of this amount will be used for strengthening government schools, expanding access to quality higher education, and implementing digital learning programs. The government also aims to create more vocational training centers and skill development institutes to improve employability and prepare the youth for the job market.
The Telangana government has also committed ₹7,500 crore to promote job creation through public-private partnerships, skill development programs, and fostering entrepreneurship. This includes the development of special industrial zones and support for start-ups to boost the local economy.
5. Environmental Sustainability
Recognizing the growing concerns of climate change and environmental degradation, the Telangana government has allocated ₹4,000 crore to environmental conservation and sustainability. This budget allocation will support the implementation of green energy projects, reforestation programs, and water conservation initiatives across the state. A significant part of this funding will be directed towards the expansion of solar energy capacity and the promotion of sustainable agricultural practices.
6. Urban Development and Smart Cities
With urbanization rapidly increasing in Telangana, particularly in Hyderabad, the state government has earmarked ₹12,000 crore for urban development. This includes improving city infrastructure, enhancing waste management systems, and expanding the scope of the Telangana State Smart Cities Mission. The government will also focus on expanding affordable housing projects to accommodate the growing urban population, alongside efforts to promote green spaces and better sanitation in urban areas.
Fiscal Responsibility and Debt Management
Despite a large outlay, the Telangana government has assured fiscal discipline in the budget. The Chief Minister has emphasized that the state’s fiscal deficit will remain within permissible limits, and efforts will be made to reduce the overall debt burden. The government has undertaken measures to enhance revenue generation, including increasing GST collection and promoting investment in key sectors like IT, manufacturing, and agriculture.
The government has also indicated that there will be a focus on digitalization of state operations, which will streamline processes, reduce costs, and bring transparency to financial management.
Conclusion
The Telangana Budget 2025 is a bold step towards ensuring long-term economic growth while improving the standard of living for the people of the state. With a focus on infrastructure development, agriculture, social welfare, and employment generation, the budget demonstrates the government’s commitment to providing comprehensive growth that benefits every segment of society.
The ₹3.04 lakh crore outlay, with its mix of strategic investments in critical sectors, positions Telangana for a bright future, particularly in its pursuit of becoming a more robust economy while focusing on the welfare of its citizens. As the budget is now set to be debated and passed in the state legislative assembly, all eyes will be on its implementation and the tangible benefits it brings to the people of Telangana.
