Telangana’s budget for FY2026-27 is ₹3.24 lakh crore for 2026-27

Telangana Government has launched a massive budget of ₹3.24 lakh crore for the financial year 2026-27. The budget envisages a total revenue expenditure of ₹ 2.34 lakh crore, 20% higher than the current (financial year 2025-26) budget, and a capital expenditure of a whopping ₹ 47,267 crore. Revenue receipts in fiscal (2026-27) are pegged at ₹2.41 lakh crore, an increase of almost 20% compared to ₹2.03 lakh crore of the current fiscal.

Indicators of land sales

Tax revenue for the next financial year is estimated at ₹1.48 lakh crore, nearly 10% higher than ₹1.34 lakh crore (revised estimates) and non-tax revenue is estimated at ₹35,730 crore, indicating the possibility of the Government opting for measures such as land sales to increase revenue receipts. On tax revenue, the State expects a significant increase in Excise duties, projected at ₹ 27,668 crore, ₹ 4,000 crore higher than the current year’s Rs. 23,623 crore.

As expected, the State has decided to opt for open market loans at ₹73,383 crore and loans from the Government of India are expected to be ₹5,500 crore. With loans of ₹ 1,000 crore from other sources, total borrowings for 2026-27 approach ₹ 80,000 crore; this was almost 25% of the total revenue revenues estimated.

The state’s share in central taxes for the year is projected to be ₹33,181 crore, over ₹3,000 crore from the current fiscal’s ₹29,318 crore (revised estimates). There continues to be dependence on aid and contributions from the Central Government as the State has estimated the amount to be ₹24,166 crore. The government had estimated ₹ 22,762 crore in the current fiscal and was revised by half to ₹ 11,161 crore at the end of the fiscal.

On the expenditure side, interest payments continue to consume a large amount at 21,304 million rupees. Of the projected revenue surplus of ₹ 2,738 crore, the State’s surplus in the current fiscal is estimated at ₹ 6,857 crore and the fiscal deficit is estimated at ₹ 59,458 crore. In the fiscal budget, the primary deficit was pegged at ₹37,154 crore.

The state’s Gross Domestic Product this year was pegged at ₹17.82 lakh crore, registering a growth of 10.7% over the previous fiscal, and per capita income crossed ₹4 lakh to ₹4.18 lakh.