Hyderabad: Telangana budget proposals for 2026-27 began taking shape as the state finance department prepared to seek detailed inputs from all departments ahead of the next Assembly session.
According to official sources, the government is likely to issue orders soon asking all departments to submit proposals for the new budget, which is expected to be tabled in February or March. After receiving the proposals, Deputy Chief Minister and Finance Minister Bhatti Vikramarka will review them with ministers and secretaries. Subsequently, discussions will focus on expenditure needs and realistic allocation estimates.
In the current financial year, the government estimated tax revenue of over ₹1.75 lakh crore in the 2025-26 budget. So far, collections are pegged at around ₹1 lakh crore. However, senior officials said tax inflows usually rise sharply by March. Therefore, they expect collections to improve significantly before the financial year ends.
Telangana budget proposals hinge on revenue targets
Meanwhile, the government has reportedly directed departments to aim for a 10% increase in tax revenue compared to last year. In the 2024-25 budget, the state targeted tax revenue of over ₹1.64 lakh crore. Eventually, collections stood at about ₹1.40 lakh crore. This year too, officials said revenue could cross ₹1.5 lakh crore.
Against this backdrop, officials said the final tax revenue target for the Telangana budget proposals will depend on inputs from revenue-collecting departments. The government must decide whether to retain the ₹1.75 lakh crore estimate or raise it further for 2026-27.
At the same time, officials expressed optimism about higher registration revenue next year. They expect real estate activity to pick up due to initiatives such as the Global Summit, Musi river rejuvenation, and the Regional Ring Road project. As a result, stamp duty and registration collections are likely to rise.
In contrast, non-tax revenue and central grants remain a concern. In the current budget, the government estimated over ₹53,000 crore from these sources. However, only about ₹11,000 crore has been received so far. Therefore, the finance department is debating whether to revise targets upward or maintain existing levels in the new budget.
Finance department officials said revenue projections may change once all departments submit their proposals. As per current budget estimates, the state should earn ₹2.84 lakh crore this year. However, officials now expect total revenue to be closer to ₹2.60 lakh crore by March. Accordingly, these figures will shape the final Telangana budget proposals for 2026-27.
