Budget aims to balance welfare & development

Hyderabad: With an eye on garnering support from rural and urban voters in the upcoming local body elections, the Telangana Government is set to present its second full annual budget for the financial year 2025-2026 on Wednesday. The budget will prioritize welfare and development programmes equally.

The total budget outlay is expected to be approximately Rs 3.1 lakh crore, an increase from Rs 2.81 lakh crore in the current financial year. A substantial allocation of funds is anticipated for infrastructure development projects and welfare initiatives.

Before presenting the budget in the Assembly, State Finance Minister Mallu Bhatti Vikramarka will seek approval from the state cabinet in a meeting convened by Chief Minister A. Revanth Reddy at the Assembly premises in the morning.

According to official sources, allocations for welfare schemes will see an increase, particularly considering the Chief Minister’s recent decision to implement additional promises made during the elections. The Rajiv Yuva Vikasam self-employment scheme, aimed at providing opportunities for the unemployed, was launched just two days before the budget presentation. The government is also considering introducing several new schemes, with corresponding allocations to be made in the budget proposals.

The upcoming fiscal year presents a significant challenge for the government due to the impending local body elections, including municipal, Zilla Parishad, Mandal Parishad, and Panchayat Raj elections. "Since this financial year coincides with an election year, the Chief Minister is focused on winning voter support across rural and urban Telangana by announcing a series of schemes and development programmes aimed at yielding positive results in the local body polls," officials stated.

The State Finance Department has conducted an extensive exercise to allocate funds to urban local bodies and gram panchayats.

Sectors such as agriculture, irrigation, education, and welfare, particularly women’s development, will receive priority as usual. The irrigation department is expected to secure increased funding, as the government plans to undertake the Tummidihatti project in collaboration with the Maharashtra government.

Additionally, the completion of all pending irrigation projects is a priority, with the finance department requested to allocate over Rs 16,000 crore to the irrigation sector in the budget outlay. Given financial challenges, sources indicate that government corporations will be permitted to seek borrowings to complete pending development projects initiated by the Roads and Buildings and Municipal Administration departments. Welfare departments will also be allowed to mobilize funds to introduce new schemes in the upcoming financial year.