Telangana Government commences budget exercise, State budget likely in February

The State government has commenced the process for preparation of the budget for the financial year of 2025-26. All departments have been directed to submit their budget proposals for the upcoming financial year by this month-end. Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka is likely to hold consultations with the departments in the first week of January. The State budget for 2025-26 is likely to be presented in the State Legislative Assembly in February next year.

This would be the first full-scale budget to be presented by the Congress government which opted to present a Vote on Account budget after coming to power in December last year and later formally presented the full budget for the year 2024-25. As a result, the departments either received improper budget allocations or were unable to utilise the funds allocated during the current fiscal.

Due to lack of proper planning and fiscal management, the State government is struggling to meet its annual targets in the tax collections as well as allocation of funds for various development and welfare programmes.

“These are all initial hiccups for any new government. As the government is now settling down, the focus would be on delivering the electoral promises in the upcoming financial year. Hence, the budget allocations will be primarily for welfare and development programmes initiated by



the Congress government,” a senior Congress functionary told Telangana Today.

Sources said the official consultations on budget proposals are likely to commence in first or second week of January, after the upcoming session of the Legislative Assembly on December 9. It would be a major challenge for the Congress government to strike a balance between welfare and development, considering its poll promises which are expected to levy heavy burden on the State exchequer.

The Congress government initially presented a Vote on Account budget with an outlay of Rs.2.75 lakh crore in February this year, citing the Lok Sabha elections. Later in July, a full-scale budget of Rs 2.91 lakh crore was submitted, with a focus on agriculture and allied sectors which received around 25 per cent of the total budget allocations. The State government hinted at heavy dependence on borrowings and accordingly, obtained around Rs.37,500 crore of the total estimated Rs.49,255 crore for the current financial year till November end.

Meanwhile, the State government on Tuesday raised fresh market loan of Rs 2,000 crore through auction of the State government securities. The officials sought the Centre’s approval to raise around Rs 10,000 crore in December alone, which is likely to affect the limit of Rs 49,255 crore approved under the Fiscal Responsibility and Business Management (FRBM) limit.