Hyderabad: Balancing ambitions with constraints, Telangana’s 2026-27 budget attempts a delicate tightrope walk — expanding welfare while keeping a firm eye on the already strained finances.Presenting the budget with an outlay of Rs 3.24 lakh crore in the assembly on Friday, finance minister Bhatti Vikramarka pitched it as a “balanced blueprint” shaped in a year of limited fiscal space, yet loaded with “big-ticket promises”.The numbers underline the balancing act. Revenue expenditure is pegged at Rs 2.34 lakh crore, while capital expenditure stands at Rs 47,267 crore—over 20% higher than the current financial year, signalling a push towards infrastructure and asset creation even as welfare commitments remain high. At Rs 3,24,234 crore, this year’s budget is 6% higher than last year’s Rs 3,04,865 crore.The budget rolls out nine new schemes, led by the Indiramma Life Insurance Scheme offering Rs 5 lakh coverage for all citizens. It also expands social support in education, proposing a breakfast scheme for students up to Intermediate level and extending mid-day meals to junior colleges, moves aimed at easing household burdens while improving student welfare.At the same time, the fiscal math reflects underlying pressure. Revenue receipts for 2026-27 are estimated at Rs 2.41 lakh crore, nearly 20% higher than the previous year’s Rs 2.03 lakh crore, while the fiscal deficit is projected at Rs 58,458 crore. The budget also leans significantly on borrowings, with loans estimated at around Rs 80,000 crore.Bias towards HyderabadEconomists and public policy experts, however, flagged concerns over the spending patterns. Amrendra Pandey, associate professor at Kautilya School of Public Policy, Gitam University, said: “Capital expenditure allotment is heavily biased towards Hyderabad, with many projects allocated funding, such as the Musi river rejuvenation, while other areas received little support.”He further said: “Another concern is that 75 per cent of the total expenditure is already committed, like salaries and pensions, leaving little room for additional allocations. Although there were some adjustments in loan allocations, the overall budget does not present anything significantly new.”On the revenue side, the state expects its share of central taxes to rise to Rs 33,181 crore, up by over Rs 3,000 crore from the revised estimates of the current year. It is also counting on Rs 24,166 crore in grants-in-aid and contributions from the Centre, even as such inflows have seen fluctuations.Land monetisationProjecting a tax revenue of Rs 1.48 lakh crore—about 10% higher than revised estimates—the finance minister said: “Without placing any additional burden on the common man through taxation, our ‘people’s govt’ believes in making best use of available resources, creating new wealth, and sharing it with the people.”Non-tax revenue is estimated at Rs 35,730 crore, indicating possible reliance on measures such as land monetisation. Meanwhile, excise revenue is expected to see a sharp jump to Rs 27,668 crore, up by nearly Rs 4,000 crore from the current year.Overall, experts said the budget lays out an expansive welfare vision backed by higher spending, but also reveals the tight fiscal space the govt must navigate, making execution and resource management key to delivering on its promises.
