HYDERABAD: With the Congress govt staking its governance on an ambitious Vision-2047 roadmap, all eyes are now on Friday’s budget, where the real test will be balancing political promises with fiscal discipline in a tightening economic space.The stage is set for the presentation of the 2026-27 state budget, following the govt’s declaration that the Vision-2047 document will anchor its long-term policy direction. In the current budget for 2025-26, the total outlay stood at around Rs 3 lakh crore. This time, the govt faces the challenge of juggling welfare commitments, poll promises, routine expenditure on employees, and funding for key infrastructure projects. One of the key points of interest will be how the Kalyana Lakshmi scheme is addressed in this budget. The govt is keen to continue the scheme, which promises Rs 1 lakh and one tola of gold as marriage assistance for girls from marginalised communities — a commitment that will require substantial funding.
However, with gold prices remaining volatile, sources indicate that the govt may consider offering an additional cash component instead of gold as a more practical alternative. Notably, this comes even as gold prices have seen a recent dip ahead of the budget. Cabinet meet at 9.30 amA cabinet meeting, chaired by chief minister A Revanth Reddy, is scheduled for Friday at 9.30 am in the assembly committee hall to clear the budget. Deputy chief minister and finance minister Bhatti Vikramarka will present it in the assembly, while legislative affairs minister D Sridhar Babu will table it in the legislative council. According to sources, the govt is looking to maximise inflows from central schemes by committing matching grants. Under existing norms, states are required to contribute 40% towards VB-G RAM G, which is expected to cost Telangana around Rs 1,800 crore. These obligations are likely to be reflected in the budget allocations. The govt is also weighing new welfare initiatives, including a proposal to distribute electric scooters to young women, for which funds may be earmarked. At the same time, higher allocations to the education sector are also on the cards as part of the broader social investment push. FRBM relief keyOn the fiscal front, the state has sought relief from the Centre on multiple counts. It has requested that spending on integrated residential schools be kept outside the Fiscal Responsibility and Budget Management limits. Additionally, it has appealed for lower interest rates on loans contracted during the previous BRS regime. If these requests are accepted, the state could gain greater borrowing headroom, potentially enabling increased spending on welfare and development. Meanwhile, infrastructure and irrigation remain a priority area. An estimated Rs 5,000 crore is required for land acquisition related to major irrigation projects, and allocations are expected to reflect this need. Projects such as Tummidihatti, Sita Rama, Palamuru-Rangareddy and Kodangal Narayanpet lift schemes are likely to receive priority in the upcoming budget. As the govt prepares to present its second full budget, the balancing act between ambition and affordability will define not just the numbers on paper, but the credibility of its long-term governance pitch, budget experts point out.
