Telangana Budget 2026-27| 10.4% of total outlay allocated to Rural Development dept, ₹2,083 crore more than 2025-26

Telangana government proposed an allocation of ₹33,688 crore to the Panchayat Raj and Rural Development department, from the the total outlay of ₹3.24 lakh crore for the 2026-27 budget. This constitutes 10.39% of the total budget. The allocation is ₹2,083 crore more than ₹31,605 crore to the department in 2025–26.

Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Friday (March 20, 2026) said the State government was entering a new phase in the development of Panchayat Raj roads, reiterating its commitment to rural development. Presenting the Budget for 2026–27 in the Legislative Assembly, he emphasised that the State’s progress was linked to the development of villages and noted that the Budget accorded special priority to rural employment.

“The State can develop only when villages develop. That is why this Budget has given special emphasis to rural employment,” he said.

The Minister said the government had drawn up proposals to construct, develop and maintain selected rural roads under the Panchayat Raj Engineering department through the Hybrid Annuity Mode (HAM). “For the current financial year, construction of 2,980 km of roads has been proposed,” he added.

Mr. Vikramarka said the government aimed to transform one crore women from self-help groups (SHGs) under Indira Kranthi Patham into millionaires by facilitating bank loans worth ₹1 lakh crore over five years. Loans amounting to ₹57,938 crore had already been facilitated. Under the Vaddi Leni Runalu (interest-free loans) scheme, an interest subsidy of ₹1,329 crore had been released to urban and rural SHGs since December 2023.

He criticised the Union government for bringing VB-G RAM G in place of MGNREGA, stating that it could once again trigger migration and adversely impact livelihoods, particularly of SC, ST and BC communities.

Panchayat Raj and Rural Development Minister D. Anasuya (Seethakka) thanked the State government for allocating the highest funds to the PR&RD department, and highlighted the enhanced outlay under the Vaddi Leni Runalu (VLR) scheme as well as the push for rural road development through the Hybrid Annuity Mode (HAM).