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

The Telangana Government has introduced a massive budget of ₹3.24 lakh crore for the financial year 2026-27. The budget projects a total revenue expenditure of ₹2.34 lakh crore and capital expenditure of a huge ₹47,267 crore, more than 20% higher than the current (financial year 2025-26) budget. Revenue receipts during the fiscal (2026-27) are pegged at ₹2.41 lakh crore, up almost 20% as compared to the ₹2.03 lakh crore of the current fiscal.

Indications of land sale

Tax revenue for the next fiscal is estimated at ₹1.48 lakh crore, about 10% higher than the ₹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 like sale of lands to augment the revenue receipts. In the tax revenue, the State is hopeful of significant rise in the 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 borrowings to the tune of ₹73,383 crore and loans from Government of India are expected to be ₹5,500 crore. With loans from other sources amounting to ₹1,000 crore, the total borrowings for 2026-27 reached closer to ₹80,000 crore, almost 25% of the total revenue receipts estimated.

The State’s share in central taxes for the year is projected at ₹33,181 crore, over ₹3,000 crore higher than the ₹29,318 crore (revised estimates) of the current fiscal. Dependence on the Grants-in-aid and Contributions from the Central Government continues as the State projected the quantum to be at ₹24,166 crore. The Government estimated ₹22,762 crore during the current fiscal and it had been revised to ₹11,161 crore, down by half at the end of the fiscal.

On the expenditure side, interest payments continue to consume a major chunk at ₹21,304 crore. From 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. Primary deficit has been pegged at ₹37,154 crore for the fiscal.

The State’s Gross Domestic Product during the current year is pegged at ₹17.82 lakh crore registering 10.7% growth over the previous fiscal and the per capita income crossed ₹4 lakh reaching ₹4.18 lakh.