Big budget plans by Telangana may call for big borrowings

The Congress-led government in Telangana, under the leadership of Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka, presented an ambitious budget of Rs 3.05 lakh crore for the financial year 2025-26. The budget, tabled in the State Assembly (on March 19, 2025), reflects the government’s commitment to welfare and development, with a significant focus on fulfilling its electoral promises.

A substantial Rs 56,000 crore has been allocated for the implementation of the party’s ‘six poll guarantees,’ aimed at addressing key social and economic challenges. These guarantees include financial support for women, farmers, and students, among others.

The budget estimates a revenue expenditure of Rs 2.27 lakh crore, highlighting the government’s focus on operational and welfare spending. Additionally, Rs 36,504 crore has been earmarked for capital expenditure, emphasizing infrastructure development and long-term growth.

To fund these initiatives, the government plans to raise Rs 64,000 crore through open market loans, reflecting its reliance on borrowings to meet fiscal demands.

Deputy Chief Minister Vikramarka emphasized the budget’s vision to drive inclusive growth and economic transformation in the state. However, the heavy reliance on loans has raised concerns about fiscal sustainability and the state’s growing debt burden.

This budget sets the stage for a year of ambitious projects and welfare schemes, with the government aiming to balance development goals with financial prudence.

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