Presenting the Telangana Budget for 2026–27 on Friday, Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu announced a wide range of welfare measures, with a focus on universal social security and expanded nutrition support for students.
The highlight of the budget is the Indiramma Family Life Insurance Scheme, which promises Rs 5 lakh life insurance coverage to every family in the state—covering nearly 1.15 crore households. The scheme, set to be launched on June 2, coinciding with Telangana Formation Day, is notable for its universal approach.
Describing it as unprecedented, Vikramarka said the scheme would apply “irrespective of social divisions,” marking a departure from traditional welfare programmes that primarily target economically weaker sections. He emphasised that the initiative aims to protect families from sudden financial distress in the event of the death of an earning member.
Another major announcement was the introduction of a breakfast scheme for students from pre-primary to Intermediate level starting from the 2026–27 academic year. Under the programme, students will receive milk three days a week and ragi malt on the remaining days.
In a first, the government also extended the mid-day meal scheme to students in government junior colleges, bringing Intermediate-level students under its ambit. The move, as the Finance Minister said, is aimed at improving nutrition during adolescence, a critical stage for cognitive development.
The budget also outlined several benefits for government employees. Under the Employees Health Scheme, a cashless healthcare programme will cover 23.51 lakh employees, pensioners, and their families for treatment across nearly 2,000 diseases in government and empanelled private hospitals.
Additionally, the government announced a comprehensive accident insurance scheme, covering 7.57 lakh employees and pensioners. The scheme provides Rs 1.20 crore compensation for death in the line of duty, Rs 10 lakh life cover up to the age of 60, and Rs 2 crore compensation in case of death due to an air accident.
Anganwadi workers were also brought into focus, with the government announcing retirement benefits of Rs 2 lakh for teachers and Rs 1 lakh for helpers, including those opting for voluntary retirement at 60.
Among other key allocations, Rs 6,000 crore has been earmarked for the Rajiv Yuva Vikasam Scheme to promote self-employment among youth from marginalised communities. The government also set aside Rs 500 crore for preparations for the 2027 Godavari Pushkaralu.
Infrastructure and employment initiatives were also highlighted. The CM Overseas Employment Programme, implemented through Telangana Overseas Manpower Company Limited (TOMCOM), aims to place youth in skilled jobs abroad. Additionally, Rs 100 crore has been allocated for modernising kitchens in government hostels, while a new road corridor will connect Bharat Future City to Machilipatnam Port. The Greater Hyderabad Municipal Corporation (GHMC) will also be reorganised into three separate civic bodies.
The Finance Minister also reviewed the progress of the government’s pre-election “six guarantees.” These include the Mahalakshmi free bus travel scheme for women, which has facilitated over 269 crore journeys, and the Rs 500 gas cylinder scheme, benefiting over 42 lakh families. The Gruhajyothi scheme has provided free electricity up to 200 units to more than 53 lakh households, while the Indiramma housing scheme has sanctioned 4.5 lakh homes.
Farmers continue to receive support under the Rythu Bharosa scheme, with Rs 18,000 crore allocated, and the Cheyutha pension scheme has been expanded with 2 lakh new beneficiaries.
“A budget is not just about numbers; it is about people,” Vikramarka said, asserting that the government has largely fulfilled its electoral promises over the past two years.
While the ambitious announcements underline a strong welfare push, their impact will ultimately depend on effective implementation as the state moves forward with its development agenda.
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