To focus on ‘China+1’ strategy, Telangana budget crosses Rs 3 lakh crore mark, bats for growth, social justice

HYDERABAD: Finance minister and deputy CM Bhatti Vikaramarka on Wednesday presented his second budget and for the first time took the total outlay past the Rs 3 lakh crore mark. Describing budget 2025-26 as a roadmap for equitable development, economic stability, and social justice, he proposed an outlay of Rs 3.05 lakh crore (3,04,965 crore), about 5% higher than the Rs 2.91 lakh crore budget of last year.
Termed as an ambitious budget by experts, the FM earmarked Rs 2.26 lakh crore for revenue expenditure and Rs 36,504 crore as capital expenditure. As much as Rs 70,000 crore would be raised via borrowings. This included market borrowings of Rs 64,539 crore, the highest since state formation in 2014.

Bhatti unveiled two major governance themes — a ‘China+1' strategy to develop Telangana into a global manufacturing hub and achieving industrial growth across the state by 2050. This vision was encapsulated in the Mega Master Plan - 2050 with core objective of decentralising industrial development, ensuring Hyderabad would not be the sole hub of industrial progress.
The budget projected a surplus of Rs 2,738 crore and a fiscal deficit of Rs 54,009 crore, primarily due to borrowings, while the primary deficit is estimated at Rs 34,640 crore. It anticipated Rs 1.45 lakh crore from tax income and Rs 31,618 crore from non-tax income. As much as Rs 29,899 crore is expected from central taxes and Rs 22,782 crore from grants-in-aid.
With welfare central focus of the Congress govt, almost a third of the budget – Rs 1.04 lakh crore – was allocated to various welfare schemes. Not surprisingly, SC welfare received the highest allocation of more than Rs 40,000 crore.
Also, with local bodies and panchayat elections due soon, the second highest allocation went to panchayat raj (Rs 31,605 crore) and agriculture (Rs 24,439 crore). This was followed by education (Rs 23,108 crore).
Krishna Reddy Chittedi, associate professor at the School of Economics, University of Hyderabad, said, "Looking at these allocations and revenue sources, including a high percentage of borrowings, the budget seems very ambitious. There has been a consistent gap between the actual income realised at the end of the financial year and what was proposed at the beginning. On a positive note, the govt has tried to allocate funds to all schemes, especially those focused on residential schools and solar energy."
Other significant announcements included renaming Yadadri temple as Yadagirigutta.
Giving financial muscle to its new micro, small and medium enterprises (MSME) policy announced recently, the government said it would invest Rs 4,000 crore in the sector over the next five years. It aimed to establish over 25,000 new MSME units across the state.
In his budget speech Bhatti alleged that some individuals had made it their mission to question every action of the govt and indulge in baseless criticism.
"They manipulate public perception by spreading false narratives through social media and their own publications. It is our responsibility to effectively counter such misleading propaganda and consistently present the truth to the people. If the truth is not communicated clearly and frequently, there is a real danger that the lies spread by self-serving individuals will be mistaken for reality," he said.