Telangana Budget 2026-27 | Bhatti likely to walk a tightrope balancing welfare and development

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.

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.