The Telangana government recently presented its Budget for the fiscal year 2025-26, outlining strategic allocations aimed at fostering economic growth, enhancing infrastructure, and promoting social welfare. While the detailed budget documents are yet to be released, preliminary reports and analyses provide a glimpse into the state’s fiscal priorities.
1. Fiscal Overview
- Budget Size and Deficit: The Telangana Budget 2025-26 is estimated at approximately ₹2.5 lakh crore, marking a 10% increase from the previous fiscal year. The fiscal deficit is projected to be around ₹15,000 crore, adhering to the 3% of GSDP norm set by the Finance Commission.
- Revenue Receipts: Expected to total ₹2 lakh crore, with significant contributions from state taxes, central transfers, and grants.
2. Sectoral Allocations
- Agriculture and Rural Development: An allocation of ₹30,000 crore, focusing on irrigation projects, farmer loan waivers, and subsidies for fertilizers and seeds.
- Education: ₹20,000 crore earmarked, with plans to establish new universities, upgrade existing institutions, and enhance digital learning infrastructure.
- Health: ₹15,000 crore allocated, aiming to improve public health facilities, introduce health insurance schemes, and recruit additional medical staff.
- Infrastructure: ₹25,000 crore set aside for road development, urban infrastructure, and public transport systems, including the expansion of the Hyderabad Metro.
- Social Welfare: ₹10,000 crore dedicated to welfare schemes for SC, ST, and BC communities, encompassing scholarships, skill development, and housing projects.
3. Taxation and Revenue Measures
- GST Collections: Targeted at ₹40,000 crore, with initiatives to streamline tax collection and reduce evasion.
- Stamp Duty Reduction: Proposed cuts in stamp duty for first-time homebuyers and women property registrants to promote affordable housing.
- Excise Duty Reforms: Rationalization of excise duties on liquor to boost state revenues while discouraging excessive consumption.
4. Employment and Skill Development
- Job Creation: The budget aims to create 1 lakh new jobs in the public sector, with a focus on youth and women employment.
- Skill Development: ₹5,000 crore allocated for skill development programs, partnerships with industries, and establishment of training centers.
5. Investment and Industrial Growth
- Industrial Policy: Introduction of incentives for industries setting up units in tier-2 and tier-3 cities to promote balanced regional development.
- FDI Initiatives: Strategies to attract Foreign Direct Investment, particularly in manufacturing and technology sectors, aiming for a 20% increase in FDI inflows.
6. Environmental Sustainability
- Green Energy Projects: ₹3,000 crore allocated for solar and wind energy projects, targeting a 30% increase in renewable energy capacity.
- Water Conservation: Investment in rainwater harvesting, watershed development, and rejuvenation of water bodies to ensure sustainable water resources.
7. Welfare Schemes
- Pension Scheme Enhancement: Increase in monthly pension amounts for senior citizens and differently-abled individuals, along with expansion of beneficiary coverage.
- Subsidized Ration: Enhancement of the subsidized ration scheme, providing essential commodities at reduced rates to low-income families.
8. Capital Expenditure and Debt Management
- Capex Focus: Emphasis on capital expenditure to stimulate economic growth, with a capex ratio target of 2.5% of GSDP.
- Debt Sustainability: Measures to manage public debt levels, ensuring that debt servicing does not exceed 15% of revenue receipts.
9. Technology and Innovation
- Digital Telangana: ₹2,000 crore was allocated for the Digital Telangana initiative, aiming to enhance e-governance, digital literacy, and IT infrastructure.
- Innovation Hubs: Establishment of innovation hubs and incubation centers to support startups and foster a culture of entrepreneurship.
10. Tourism and Culture
- Heritage Conservation: ₹1,500 crore earmarked for the restoration and preservation of historical sites and cultural monuments.
- Tourism Promotion: Development of tourism circuits, promotion of eco-tourism, and hosting of cultural festivals to boost tourism-related revenues.
Conclusion
The Telangana Budget 2025-26 reflects the state’s commitment to balanced development, addressing the needs of various sectors while ensuring fiscal prudence. The focus on infrastructure, social welfare, and sustainable growth is expected to propel Telangana towards its long-term developmental goals.
Please note that these insights are based on preliminary reports. Detailed budget documents and official releases will provide comprehensive information upon their publication.
