Telangana Finance Minister Mallu Bhatti Vikramarka presents the Budget for the financial year 2026-2027 at the Assembly in Hyderabad on Friday (March 20, 2026) | Photo credit: BY ARRANGEMENT
The Telangana government has introduced a massive budget of ₹ 3.24 crore for the financial year 2026–27. The budget envisages a total revenue expenditure of ₹ 2.34 crore and capital expenditure of ₹ 47,267 crore, which is more than 20% more than the current budget (for the financial year 2025–26). Revenue from revenue during the fiscal (2026-27) is pegged at ₹2.41 crore, up nearly 20% compared to ₹2.03 billion in the current fiscal.
Indication of land sale
Tax revenue for the next fiscal is estimated at ₹ 1.48 crore, up about 10% from ₹ 1.34 crore (revised estimates) and non-tax revenue is estimated at ₹ 35,730 crore, suggesting the possibility of the government opting for measures such as land sales to raise revenue. In terms of tax revenue, the state is hoping for a significant increase in excise duty projected at ₹ 27,668 crore, which is ₹ 4,000 crore more than the current ₹ 23,623 crore.
As expected, the state has opted for open market borrowings of ₹73,383 crore and borrowings from the Government of India are expected to be ₹5,500 crore. With borrowings from other sources of ₹ 1,000 crore, total borrowings in 2026–27 have reached nearly ₹ 80,000 crore, nearly 25% of the total estimated receipts.
The state’s share of central taxes for the year is projected at ₹33,181 crore, which is over ₹3,000 crore more than the current fiscal’s ₹29,318 crore (revised estimates). Dependence on grants and contributions from the central government continues as the state projected the quantum to be ₹24,166 crore. The government’s estimate of ₹22,762 crore during the current fiscal has been revised to ₹11,161 crore, which is half that at the end of the fiscal.
Telangana budget for the financial year 2026-27 by department | Photo credit: BY ARRANGEMENT
On the expenditure side, interest payments continue to consume a large chunk at ₹21,304 crore. Out of a projected revenue surplus of ₹2,738 crore, the state’s surplus during the current fiscal is estimated at ₹6,857 crore and the fiscal deficit is pegged at ₹59,458 crore. The primary deficit was pegged at ₹37,154 crore for the fiscal.
The Gross State Domestic Product (GSDP) during the current year is pegged at ₹ 17.82 crore, a 10.7% growth over the previous fiscal, and the per capita income has crossed ₹ 4 crore to reach ₹ 4.18 crore.
Published – 20 March 2026 13:44 IST
