Telangana govt goes big on welfare, allocates 1/3rd of budget for major schemes

The Congress government has allocated Rs 1.04 lakh crore for welfare schemes in the 2025-26 fiscal, covering 28 major programs. This budget supports key initiatives like Rythu Bharosa, Cheyutha pensions, and free bus travel. However, some promises like the Dalit Bandhu scheme remain unfunded. The government plans to finance these programs through various revenue sources and borrowing.
Telangana govt goes big on welfare, allocates 1/3rd of budget for major schemes
Despite considerable expenses and a debt left by the previous administration, significant funds have been allocated to farmers, social security pensions, and infrastructure projects, with additional revenue coming from various sources.
HYDERABAD: The Congress govt has allocated Rs 1.04 lakh crore – one-third of the budget outlay of Rs 3.05 lakh crore – to implement welfare schemes in the 2025-26 fiscal.
The allocation of Rs 1.04 lakh crore is for 28 major schemes – Rs 56,084 crore for implementation (nine of 12 promises) of its six guarantees and Rs 48,245 crore for other important schemes.
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A majority of the welfare schemes need huge funds. The govt would have to pay at least Rs 18,000 crore to farmers under Rythu Bharosa, Rs 14,861 crore for its Cheyutha scheme comprising social security pensions, and Rs 12,571 crore for Indiramma houses. It has to reimburse Rs 4,305 crore towards free bus travel and other financial support to TGSRTC. It has to pay Discoms Rs 2,080 crore towards free electricity being provided to 50 lakh homes under the Gruha Jyoti scheme and Rs 1,800 crore to farmers at the rate of Rs 500 per quintal for fine variety paddy for rabi.
Though the state govt has projected a massive Rs 69,000 crore as borrowing, it needs to do more to fund its welfare schemes on the basis of which it came to power.
The budget has not shown any allocations for schemes such as Dalit Bandhu, renamed by the ruling Congress as Ambedkar Abhaya Hastham, as part of which it promises a one-time Rs 12 lakh financial assistance to poor SC and ST families. The previous Dalit Bandhu scheme carried Rs 10 lakh per Dalit family, and the previous BRS govt too was not able to extend it to all eligible families, confining it to an assembly constituency and a few villages as a pilot project.
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People might have to wait longer for the implementation of other promises too, like the one tola gold under Kalyana Lakshmi scheme, Rs 2,500 per month financial assistance to women, and the unemployment allowance to the jobless youth, to name only a few from among numerous promises of Congress, which are pending.
While deputy CM and FM Bhatti Vikramarka and minister N Uttam Kumar Reddy, among others, said a perfect balance was struck between welfare and development, sources in the finance department said that besides the regular tax and non-tax revenues, the govt would have to depend on other sources of income. These include the auction of high-value land parcels in and around the city, centrally sponsored schemes, loans, raising maximum income from the Land Regularisation Scheme (LRS), checking revenue leakages, and enhancing income from various sources like sand mining, among others, to fund its welfare schemes. It also has to take care of getting funds for some of its ambitious projects such as Musi rejuvenation and Metro Rail expansion.
On their part, the ruling Congress leaders said the people have given them a five-year term to implement these promises, and over three-and-a-half years remain with hugely financial-intensive promises like the Rs 2 lakh crop loan waiver already implemented.
"Within two days of coming into office, the Congress govt had started implementing free bus travel and enhanced Rs 10 lakh Arogyasri schemes, followed by Rs 500 gas cylinders to 40 lakh women, 200 units of electricity to 50 lakh families, Rs 12,000 per acre per annum Rythu Bharosa, gave over 57,000 govt jobs, continued Aasara pensions under Cheyutha, and paid over Rs 7,000 crore Rythu Bandhu left unpaid by the previous govt. Despite a mountain of debt left behind by the previous BRS govt, the Revanth Reddy govt has been doling out welfare schemes, one after the other, and simultaneously setting right the fiscal situation. Every promise will be implemented," a senior Congress leader said.
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