Policy Update
Ameya Satam
Introduction:
In March 2026, with the aim of ensuring social and economic justice for every citizen in Telangana, the Deputy Chief Minister and Finance Minister of Telangana, Mallu Bhatti Vikramarka, presented the annual budget of 2026-27 in the Legislative Assembly. Uttam Kumar Reddy, the Minister for Irrigation and Food & Civil Supplies, presented the same in the Legislative Council. The total outlay of the budget is Rs. 3,24,234 crore; compared to last year’s budget, it has increased by around Rs.20,000 crore from last year’s budget of Rs. 3.04 lakh crore (ETV Bharat, 2026). In the budget, support for farmer welfare, women’s empowerment, youth employment, quality education, healthcare and infrastructure was mainly focused.
The Gross State Domestic Product (GSDP) of Telangana has been recorded at Rs. 17,82,198 crore for the financial year 2025-26 (ETV Bharat, 2026). The Telangana government is pursuing its target of transforming the state into a US$1 trillion economy by 2034 and a US$3 trillion economy by 2047 (ETV Bharat, 2026). The schemes introduced in the 2026-27 annual budget are aimed at supporting the 2047 vision of the state (ETV Bharat, 2026). The article highlights major schemes and initiatives included in the 2026-27 budget.
Schemes:
Scheme 1:
Name – Rythu Bharosa Scheme
Department – Agriculture & Cooperation Department
Launch Year – 2025
Latest Budget/Allocation – Rs.18,000 crore
Key Benefits –
- Farmers receive ₹12,000 per acre annually in two equal instalments of ₹6,000 for the Kharif and Rabi seasons.
- Eligibility is restricted to Telangana residents with cultivable land registered on the Bhu Bharati portal, including eligible Recognition of Forest Rights (RoFR) landholders; non-cultivable plots, such as real estate layouts, industrial zones, and fallow land, are excluded.
Scheme 2:
Name – Bonus to Agricultural Produce (Paddy Crop)
Department – Agriculture & Cooperation Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 3,500 crore
Key Benefits –
- For raising paddy crop, an additional bonus of Rs. 500 per quintal is credited to the farmer’s account directly from the agriculture department.
Scheme 3:
Name – Indiramma Atmiya Bharosa Scheme
Department – Agriculture & Cooperation Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 600 crore
Key Benefits –
- The Indiramma Atmiya Bharosa Scheme provides eligible landless agricultural labourers with ₹12,000 annually in two instalments of ₹6,000, with around 5.8 lakh families expected to benefit.
- Eligible applicants must hold an MGNREGS job card and have worked for at least 20 days under the scheme, with only one member per family permitted to apply; the assistance is intended to help them purchase farming tools and other essential materials (Sarkari Yojana, 2026a).
Scheme 4:
Name – Sanna Biyyam Scheme (Rice Subsidy)
Department – Civil Supplies Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 3,000 crore
Key Benefits –
- The Sanna Biyyam Scheme provides six kilograms of fine-quality rice per person per month through the Public Distribution System (PDS), with approximately 3.2 crore people expected to benefit.
- It aims to improve access to quality rice, with eligibility extended to every member of a family holding a valid ration card (Sarkari Yojana, 2026).
Scheme 5:
Name – Indiramma Kutumba Jivitha Bima
Department – Finance & Planning Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 4,000 crore
Key Benefits –
- The scheme provides ₹5 lakh in insurance coverage to nominees in the event of a registered farmer’s death.
- It is expected to protect approximately 1.5 crore families across income groups, with low-income households likely to benefit most; eligibility requires a valid ration card (Kumar, 2026).
Scheme 6:
Name – Cheyutha Scheme
Department – Panchayat Raj and Rural Development Department
Launch Year – 2020
Latest Budget/Allocation – Rs. 14,861 crore
Key Benefits –
- Supports economically weaker sections by providing monthly pensions and access to healthcare assistance.
- Eligible beneficiaries generally receive ₹4,000 per month, while persons with disabilities receive ₹6,000; eligibility requires Telangana residency, BPL status with a white ration card, and membership in a recognised category, such as senior citizens, widows, persons with disabilities, beedi workers, single women, or people with specified diseases.
Scheme 7:
Name – Mahalakshmi Scheme
Department – Transport, Roads and Buildings & Civil Supplies Department
Launch Year – 2023
Latest Budget/Allocation – Rs. 4,305 crore for Free Bus Travel and Rs. 723 crore for LPG subsidy
Key Benefits –
- The Mahalakshmi Scheme provides eligible women with ₹2,500 in monthly financial assistance, LPG cylinders at a subsidised price of ₹500, and free bus travel for women, girls, and transgender persons within Telangana.
- Financial assistance is intended for eligible Telangana residents from BPL and Antyodaya households, subject to the stated income criteria, while free bus travel requires a valid Aadhaar card, according to the provided guidelines.
Scheme 8:
Name – Gruha Jyothi Scheme
Department – Energy Department
Launch Year – 2024
Latest Budget/Allocation – Rs. 2,080 crore
Key Benefits –
- The Gruha Jyothi Scheme provides eligible households with free electricity for consumption of up to 200 units per month, with zero electricity bills for households staying within this limit.
- Households consuming more than 200 units are charged at the regular rates, while eligibility is generally intended for low-income households and ration card holders, subject to the scheme’s applicable guidelines.
Scheme 9:
Name – Power Subsidy Scheme
Department – Energy Department
Launch Year – 2024
Latest Budget/Allocation – Rs. 14,000 crores
Key Benefits –
- This scheme supplies free power to the agriculture sector 24/7.
- This scheme created a need to set up the Rythu Discom, which would provide continuous power supply to the agricultural sector, lift irrigation schemes and drinking water projects.
Scheme 10:
Name – Rajiv Aarogya Sri Scheme
Department – Health, Medical and Family Welfare Department
Launch Year – 2007
Latest Budget/Allocation – Rs. 1,143 crore
Key Benefits –
- The Rajiv Aarogyasri Scheme provides free medical treatment to eligible BPL families, covering 1,672 types of diseases and offering financial assistance of up to ₹10 lakh per family annually, increased from the earlier limit of ₹5 lakh.
- Treatment is provided through network hospitals across Telangana, with 639 hospitals reported to offer services, while high-cost procedures such as cochlear implantation and organ transplantation may be covered under exceptional circumstances (District Administration, Suryapet, n.d.).
Scheme 11:
Name – Employees Health Scheme
Department – Health, Medical and Family Welfare Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 1,056 crores
Key Benefits –
- The Cashless Health Security Scheme provides cashless medical treatment to government employees, pensioners, and their dependent family members, covering 1,998 diseases through government hospitals and 421 empanelled private hospitals.
- The scheme is expected to cover approximately 23.51 lakh people, with digital health cards issued to employees; additionally, retirement benefits of ₹2 lakh for Anganwadi teachers and ₹1 lakh for helpers are provided, including to those who voluntarily retire at age 60 (Finance Department, Government of Telangana, 2026).
Scheme 12:
Name – Accident Insurance Scheme.
Department – Finance Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 1,056 crores
Key Benefits –
- The Comprehensive Accident Insurance Scheme provides financial protection to approximately 7.57 lakh Telangana government employees and pensioners.
- In the event of accidental death, eligible families receive insurance coverage of ₹1.20 crore, along with term life insurance of ₹10 lakh up to the age of 60; an additional ₹2 crore is provided in cases of death due to air accidents (Finance Department, Government of Telangana, 2026).
Scheme 13:
Name – Rajiv Yuva Vikasam
Department – Backward Classes (BC) Welfare, Scheduled Castes (SC) Development, Scheduled Tribes (ST) Development, and Minorities Welfare Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 5,800 crore
Key Benefits-
- The Rajiv Yuva Vikasam Scheme supports unemployed youth from SC, ST, BC, EBC/EWS, and minority communities in Telangana through subsidised loans of up to ₹3 lakh for self-employment.
- Applicants must meet the prescribed family-income limits of ₹1.5 lakh annually in rural areas and ₹2 lakh in urban areas, with age limits of 21–55 years for non-agricultural activities and 21–60 years for agricultural and allied activities. Subsidies range from 70% to 100%, depending on the loan amount, while vulnerable groups can receive loans of up to ₹1 lakh with a 90% subsidy; eligible minor irrigation self-employment activities receive a 100% subsidy.
- Supported businesses include agriculture, animal husbandry, horticulture, transport, industrial services, and small-scale enterprises.
Scheme 14:
Name – Kalyana Lakshmi/Shaadi Mubarak
Department – Backward Classes (BC) Welfare Department, Scheduled Caste Development Department, Scheduled Tribes Welfare Department, Minorities Welfare Department and Women and Child Welfare & Finance Departments
Launch Year – 2014
Latest Budget/Allocation – Rs. 3,683 crores
Benefits –
- The Kalyana Lakshmi and Shaadi Mubarak schemes provide financial assistance for the marriage of eligible brides from disadvantaged communities, with the assistance transferred to the bride’s mother’s bank account.
- Applicants must be at least 18 years old and meet the prescribed family-income limits, generally ₹2 lakh annually for urban households and ₹1.5 lakh for rural households; Kalyana Lakshmi serves eligible Hindu brides, while Shaadi Mubarak is intended for Muslim brides.
Scheme 15:
Name – Interest-Free Loans to DWACRA Women (Vaddileni Runalu)
Department – Panchayat Raj and Rural Development Department
Launch Year – 2012
Latest Budget/Allocation – Rs. 2,500 crores
Benefits –
- The scheme aims to strengthen women’s financial independence by providing eligible Self-Help Groups (SHGs) with interest-free loans ranging from ₹5 lakh to ₹10 lakh to establish or expand income-generating activities.
- Eligible SHGs must maintain regular savings, an active bank account, proper financial records, and a satisfactory loan repayment history; the funds can support small businesses, cottage industries, agriculture, food processing, tailoring, dairy, and handicrafts.
- Women from poor and middle-class backgrounds who own small businesses do not need to be dependent on high-interest loans from private moneylenders.
Scheme 16:
Name – Breakfast & Milk to School Students
Department – Department of School Education
Launch Year – 2026
Latest Budget/Allocation – Rs. 720 crores
Key Benefits –
- The students in 1,269 government schools all over the state will be given breakfast
- 1.44 lakh students from nursery to class 12 will be covered under this scheme.
- Every student will get milk on three days, while on the remaining three days, ragi malt will be given.
- Improvement in nutrition and health, plus an increase in attendance and punctuality. Reduction in dropouts.
Scheme 17:
Name – CM Oversees Employment Programme
Department – Department of Labour, Employment, Training and Factories
Launch Year – 2026
Latest Budget/Allocation – Rs. 1,056 crores
Key Benefits –
- This scheme will provide full assistance to the youth who wish to work abroad and to advance their skills and become impactful in their career.
- The sectors of healthcare, hospitality, construction and logistics will get training of international standards.
Scheme 18:
Name – Rajiv Yuva Vikasam (Retrofitting of Auto Rickshaws in CURE area with Electrical Fitment)
Department – Backward Classes (BC) Welfare, Scheduled Caste (SC) Welfare, Scheduled Tribe (ST) Welfare, Minority Welfare Departments, and the Transport Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 200 crores
Key Benefits –
- Petrol and diesel autorickshaws will be converted into electric autorickshaws which are functioning in the Core Urban Region Economy (CURE) area.
- Financial assistance of up to Rs. 1.5 lakh will be given for modifying existing vehicles or buying new electric autorickshaws.
- The main goals of getting clean air and having sustainable public transport in the CURE can be achieved.
Scheme 19:
Name – Hundred Percentage (100%) Solarisation of Villages
Department – Energy Department
Launch Year – 2024
Latest Budget/Allocation – Rs. 1,000 crores
Key Benefits –
- Solar Energy replacing various non-renewable energy resources in villages.
Scheme 20:
Name – Indira Soura Giri Jala Vikasam
Department – Tribal Welfare Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 500 crores
Key Benefits –
- Free solar pumps to tribal farmers for irrigating horticulture crops.
- Revenue generation opportunities for the women’s self-help groups (SHG) through solar power plant installations.
Scheme 21:
Name – Assistance to Weavers (Nethannaku Bharosa scheme)
Department – Department of Handlooms and Textiles
Launch Year – 2022
Latest Budget/Allocation – Rs. 450 crores
Key Benefits –
- Registered weavers working on geo-tagged looms receive a cash dole worth Rs. 18,000 every year in two instalments, while allied sector workers receive Rs. 6,000 per year.
Scheme 22:
Name – Extension of Pavala Vaddi Scheme to all SSI and Food Processing units
Department – Industries & Commerce Department
Launch Year – 2014
Latest Budget/Allocation – Rs. 350 crores
Key Benefits –
- Alleviates the financial burden of establishing new micro and small enterprises, including food processing industries, within Telangana.
- 100% reimbursement of Stamp Duty.
- 25% rebate in land cost limited to Rs. 10.00 lakhs.
- Fixed power cost reimbursement at Rs. 1.00 per unit for 5 years.
- 15% investment subsidy on fixed capital investment subject to a maximum of Rs. 2000 lakhs.
- Reimbursement of 100% State Goods and Services Tax for 5 years.
- Interest subsidy under Pavala Vaddi Scheme on term loans on fixed capital: 3% to 9% per annum for 5 years.
- Seed capital assistance to first-generation entrepreneurs to set up.
- Micro Enterprises at 10% of the Machinery cost.
- 50% subsidy on the expenses incurred for quality certification/patent registration limited to Rs. 2.00 lakhs.
- 50% Reimbursement of costs involved in skill upgradation and training the local manpower, limited to Rs.2000 per person.
- 25% subsidy on specific cleaner production measures limited to Rs. 5.00 lakhs.
Scheme 23:
Name – Assistance to CURE for SC Welfare Scheme
Department – Scheduled Castes Development Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 315 crores
Key Benefits –
- This fund will help uplift people from SC communities in the CURE area.
Scheme 24:
Name – Indiramma Indlu Scheme
Department – Housing Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 5,500 crores
Key Benefits –
- Subsidy support for eligible people for home construction.
- Permanent house with amenities.
- Women will also get homes.
Initiatives:
Initiative 1:
Name – Assistance to CURE for Hyderabad City Innovative and Transformative Infrastructure (H-CITI)
Department – Municipal Administration and Urban Development (MA&UD) Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 2,654 crores
Goals & Conditions-
- The Indiramma Housing Scheme aims to provide affordable multi-storey housing to economically weaker households in Hyderabad’s Core Urban Region (CURE), with one lakh houses planned.
- Each flat will have a built-up area of 525 square feet, with a construction cost of approximately ₹11 lakh, of which beneficiaries receive a ₹5 lakh subsidy and pay ₹6 lakh in four instalments. In the first phase, 16 of 24 Assembly constituencies have been sanctioned 500 houses each; applicants must have an annual income below ₹6 lakh and own neither a house nor a plot in CURE.
- Houses cannot be sold for 10 years, although they may be mortgaged for bank loans, and reservations apply to SC, ST, and BC categories (Press Trust of India, 2026).
Initiative 2:
Name – Mission Bhagiratha
Department – Panchayati Raj and Rural Development Department
Launch Year – 2016
Latest Budget/Allocation – Rs. 500 crores
Goals & Achievements –
- The Mission Bhagiratha aims to provide safe, sustainable piped drinking water to households across Telangana by addressing water shortages, groundwater contamination, and unequal access.
- It integrates river and reservoir sources with treatment plants, pipelines, storage reservoirs, and monitoring systems; by 2048, projected water demand is estimated at 86.11 TMC, comprising 53.68 TMC from the Godavari Basin and 32.43 TMC from the Krishna Basin (Telangana360, 2026).
- This initiative aims to expand access to treated surface water, provide household tap connections, reduce exposure to fluoride-contaminated water, and interconnect water-supply systems across the state.
Initiative 3:
Name – Hybrid Annuity Model (HAM) Roads (Upgradation and Maintenance)
Department – Panchayat Raj and Rural Development Department & Roads and Buildings (R&B) Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 3,053 crores
Goals –
- Implementation of this model will transform rural road infrastructure, which will connect rural and remote areas. It will result in the strengthening of the rural economy.
Initiative 4:
Name – Young India Integrated Residential Schools (YIIRS)
Department – Department of School Education
Launch Year – 2024
Latest Budget/Allocation – Rs. 5,000 crores
Goals –
- To give world-class, inclusive, and integrated residential education to the students of every section, especially to bring in all SC, ST, BC, and minority communities under one roof.
- This initiative will give an experience of a diverse and collective learning environment to the students of diverse communities.
Initiative 5:
Name – Telangana Public Schools
Department – Department of School Education
Launch Year – 2026
Latest Budget/Allocation – Rs. 500 crores
Goals –
- Comprehensive facilities, subject-wise teachers, grade-specific teachers, and digital classrooms are being provided, along with education for 1,500 students from pre-primary to Class X or XII.
- A safe and trustworthy transportation system will be provided.
- Access to quality education will be improved with a special focus on foundational literacy and numeracy, remedial teaching, and enhancement of non-cognitive skills.
Initiative 6:
Name – Regional Ring Road
Department – Roads and Buildings (R&B) Department
Launch Year – 2017
Latest Budget/Allocation – Rs. 1,625 crores
Goals –
- Diversion of traffic away from Hyderabad city and promotion of economic growth in the region.
Initiative 7:
Name – Assistance to GENCO
Department – Energy Department
Launch Year – 2013
Latest Budget/Allocation – Rs. 1000 crores
Goals –
- GENCO supports electric power generation.
Initiative 8:
Name – Assistance to TRANSCO
Department – Energy Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 1,000 crores
Goals –
- TRANSCO supports lift irrigation schemes by providing a constant power supply for irrigation.
Initiative 9:
Name – Green Energy, including promotion of new Energy Policy
Department – Energy Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 1000 crores
Key Benefits –
- Energy security
- Reliable and affordable power
- Self-sufficiency and sustainability of Telangana Power Utilities
- Development of solar, wind & other RE projects in the state
- Development of energy storage systems
- Production of green hydrogen and its derivatives
- Strengthen the state’s manufacturing ecosystem
- Boost investments and increase job potential in the state.
Initiative 10:
Name – Loans to Hyderabad Metro Water Supply & Sewerage Board for Sunkishala Intake Project KGWSP
Department – Municipal Administration and Urban Development (MA&UD) Department
Launch Year – 2022
Latest Budget/Allocation – Rs. 1,000 crores
Goals –
- Treatment of the sewage generated in the city.
- Provision of drinking water for the people living in the city.
Initiative 11:
Name – Osmania University
Department – State Higher Education Department and Minorities Welfare Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 1,000 crores
Key Benefits –
- The funds will be used for the renovation of the university’s infrastructure, creation of world-class facilities, and modernization of research laboratories to match the level of international standards.
Initiative 12:
Name – PMU – Tourism Infrastructure and Development and upgradation of new and existing tourism units including Kawal Tiger Reserve, Amrabad Tiger Reserve & Eco-Tourism
Department – Youth Services, Tourism and Culture Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 878 crores
Key Benefits –
- Restoration of forests and strengthening the conservation of tigers and other wildlife.
- Promotion of tiger tourism.
- Development of eco-tourism projects.
- Training of local youth in hotel management, guiding, handicrafts and forest conservation roles.
Initiative 13:
Name – Metro Rail (Phase-II)
Department – Municipal Administration and Urban Development (MA&UD) Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 600 crores
Key Benefits –
- It will cater for the growing population, and it will address the traffic congestion issues in Hyderabad city.
- It will be a reliable and time-saving mode of transportation; along with this, it will lessen the dependency on private vehicles for transportation.
- It will encourage economic growth, investments, and boost the real estate sector.
- It will fulfill the government’s vision of building a sustainable and eco-friendly transportation system.
Initiative 14:
Name – Godavari Pushkaralu
Department – Endowments Department, the Irrigation Department, and the Tourism Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 500 crores
Goals –
- It will support pollution control measures.
- It will improve sewage and industrial waste treatment.
- It will help to rejuvenate the Godavari River.
Initiative 15:
Name – Assistance to Temple Development
Department – Endowments Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 2,216 crores
Goals –
- This policy will encourage the construction and renovation of temples in the state.
- Religious events like Sarawati Pushkaram will also be supported through this policy.
Initiative 16:
Name – SC Residential Schools (Other than salaries, diet)
Department – Scheduled Castes Development Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 221.24 crores
Goals –
- Benefit to the management of Gurukuls and government residential hostels in Telangana.
- Focusing on nutrition, lodging and welfare facilities of the students.
- SC, ST, BC and Minority Welfare Departments will be able to run Gurukuls, residential educational institutions and hostels. Ultimately, students will benefit from it.
Initiative 17:
Name – Loans to HMRL for Hyderabad Metro Rail Project
Department – Municipal Administration and Urban Development (MA&UD) Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 13,600 crores
Goals –
- The government will be able to build an efficient, sustainable, and commuter-friendly public transport infrastructure.
- It will support economic growth in the long term.
- It will reduce traffic congestion and improve quality of life in Hyderabad city.
Initiative 18:
Name – Loans to HMDA for taking up for developmental activities
Department – Municipal Administration and Urban Development (MA&UD) Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 500 crores
Goals –
- Restructuring of Greater Hyderabad Municipal Corporation (GHMC).
- Polluting industries will be shifted outside the Outer Ring Road limits.
- Development of a 30,000-acre “Bharat Future City” in the Hyderabad region.
- Investments worth Rs. 5.75 lakh crore have been reported in the region.
- Metro expansion and connectivity will be completed.
- The police commissionerate will be reorganized.
Initiative 19:
Name – Most Backward Classes Development Corporation
Department – Backward Classes Welfare Department
Launch Year – 2017
Latest Budget/Allocation – Rs. 400 crores
Key Benefits –
- Supporting the development of the most backward class communities in Telangana.
Initiative 20:
Name – Farm Mechanization
Department – Department of Agriculture and Cooperation
Launch Year – 2026
Latest Budget/Allocation – Rs. 344 crores
Goals –
- Increasing productivity, reducing the cost of cultivation and saving the time of farmers in farming operations.
- The subsidy proposed under this scheme is 50 percent and the maximum permissible limit varies depending on the type of machinery.
Initiative 21:
Name – Veeranari Chakali Ailamma Women’s University
Department – Higher Education Department
Launch Year – 2025
Latest Budget/Allocation – Rs. 500 crores
Goals –
- To construct hostels and an academic block.
- These funds will help the university to pay its daily expenses.
- Salaries of the university’s employees will be paid.
Initiative 22:
Name – Construction of Infrastructure in SC Colonies
Department – Panchayat Raj and Rural Development Department & Scheduled Castes Development Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 1,500 crores
Key Benefits –
- This initiative will help the colonies of SC communities through the construction of new infrastructure.
Initiative 23:
Name – Nagarabhivrudhi including Mancherial, Mahabubnagar, Kothagudem & Palwancha Municipalities & Corporations
Department – Municipal Administration and Urban Development (MA&UD) Department
Launch Year – 2026
Latest Budget/Allocation – Rs. 826 crores
Goals –
- Providing civic services, maintaining infrastructure and improving the quality of life for residents in the cities.
Initiative 24:
Name – HMWSSB reimbursement amount towards 20 KL free water supply scheme
Department – Municipal Administration and Urban Development Department
Launch Year – 2021
Latest Budget/Allocation – Rs. 300 crores
Key Benefits –
- Up to 20 KL of free water per month for eligible domestic households.
- Consumers using up to 20 KL per month receive a ‘zero water bill’.
Challenges:
Current Issues faced by EHS cardholders: The rejection of the Employee Health Scheme (EHS) cards has started due to monthly salary deductions and unpaid government dues provided to corporate hospitals, which has resulted in getting into a problem with cashless medical treatment for employees. Lagging in enacting the Pay Revision Commission (PRC) report, employee unions have warned of an indefinite strike if the issue of six pending instalments of Dearness Allowance (DA) is not resolved. Government employees have become upset due to failures in PRC, DA and EHS (Srinivas, 2026).
Unpaid or Delayed Salaries and Wages: Improper policy implementation in private and public sectors has caused issues in the higher education system as well. Pending fee reimbursement dues, which are worth more than Rs. 10,000 crore, have stopped the daily functioning of private engineering, degree, and paramedical colleges (Srinivas, 2026). Issues like unpaid staff salaries are being raised; college managements and faculty are linking up for strikes. More than 1,00,000 teaching and non-teaching employees are facing financial issues because of unpaid or delayed wages (Srinivas, 2026).
Debt of Telangana State: As reported by the Socio-Economic Outlook 2026, as of Dec 2025, Telangana’s total debt was around Rs 8 lakh crore (Press Trust of India, 2026). Outstanding liabilities are increasing along with the interest on the debt, which can make it difficult for the state to repay the interest and principal. Balancing debt repayments and continuously spending money on welfare and development of the state will become difficult if the public finance strategy is not properly mapped. It is being observed that the gap between the state’s revenue and expenditure is increasing.
Due to this, the state has become dependent on borrowings, as it was published in a report by the Comptroller and Auditor General (CAG) in July 2026. If this condition continues further, then the money required for welfare and development cannot fulfill those purposes without borrowing more money.
Conclusion:
The 2026–27 budget places significant emphasis on farmer welfare, women, youth, healthcare, and the welfare of BC, SC, ST and minority communities. Various of these schemes focus on financial assistance to the people, which is a good medium to encourage people to conduct their economic activities accordingly. The policies regarding the agricultural sector reflect that the agricultural sector of the state is mostly dependent on the government’s support.
Kalyana Lakshami/Shaadi Mubarak-like schemes increase the importance of women in the family because money gives them the power to make decisions in their family. However, as per an exploratory study conducted by the Tata Institute of Social Sciences, the cases of child marriage have seen a significant rise due to such policies.
While these policies may deliver positive results in the short term, their long-term sustainability remains an important policy consideration. If some households come to rely on continued government assistance, it could raise questions about the extent to which such schemes promote lasting economic self-reliance and whether growing fiscal commitments might place additional pressure on the state government’s finances in the future. It is important for the Telangana government to be cautious while planning to implement such policies. Debt on the Telangana government might increase in the future if they don’t keep a note of the current debt of the state and keeps bringing new policies without taking prompt actions to decrease the debt of the state.
References –
- ETV Bharat. (2026, March 20). Telangana presents Rs 3.24 lakh crore budget focusing on overall welfare and growth. https://www.etvbharat.com/en/state/telangana-presents-rs-3-dot-24-lakh-crore-budget-focuses-on-welfare-and-growth-enn26032002787
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- Kumar, A. (2026, July 15). TS Indiramma Bima Insurance Scheme 2026, eligibility and benefits. Nayilakshu. https://nayilakshu.com/ts-indiramma-bima-insurance-scheme/
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About the Contributor
Ameya Satam is a Research & Editorial Intern at IMPRI specializing in International Relations and Strategic Studies. He completed his post-graduation in International Relations at Sikkim University, focusing on Indo-Pacific geopolitics and India–US cooperation, and is dedicated to analyzing regional security frameworks to inform evidence-based policy discourse.
Acknowledgement
I would like to extend my sincere gratitude to Ms. Ninchen Tamang, Ms. Tanisha Hooda and IMPRI India for their guidance and support.
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Ms. Ninchen Tamang and Ms. Tanisha Hooda
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