Hyderabad: Construction of Young India Integrated Residential Schools (YIIRS), roads under the hybrid annuity model (HAM), expansion of the Hyderabad Metro Rail network and the ambitious Musi rejuvenation project in Hyderabad are set to significantly boost the state government’s capital expenditure during the current financial year 2026-27, official sources said.
The state government has proposed a capital expenditure outlay of ₹47,267 crore in the 2026-27 budget, marking a sharp increase of nearly 30 per cent over the previous financial year 2025-26.
The government presented a Budget outlay of ₹3,24,234 crore for FY2026-27, with a strong emphasis on long-term asset creation through investments in irrigation, roads, education infrastructure and urban transport projects. Major allocations under the capital expenditure component include ₹12,836 crore for irrigation projects, ₹9,432 crore for Scheduled Castes, Scheduled Tribes and Other Backward Classes welfare and ₹5,677 crore for roads and bridges.
Urban infrastructure development remains one of the government’s key priorities with flagship projects such as the Musi Riverfront rejuvenation programme and Phase-II and Phase-III expansion of the Hyderabad Metro Rail receiving major focus.
A major component of the state’s capital expenditure in FY2026-27 will be the construction of YRIIS. The government had invited tenders for the schools at an estimated project cost of ₹10,199.54 crore. The cost has escalated to ₹10,693.55 crore, due to rise in input costs.
The government plans to establish the schools in 105 Assembly constituencies. Approvals have been accorded for 83 schools, while tenders have already been invited for 76 schools. Construction activities for these educational institutions are scheduled to begin during the current fiscal year.
Another major infrastructure initiative expected to contribute substantially to capital expenditure is the HAM roads programme. Under the first phase, the government plans to construct 441 roads in 34 packages covering a total distance of 6,092.37 kilometres at an estimated cost of ₹13,006.27 crore. The construction works under the programme are also slated to commence during 2026-27.
The state government is simultaneously undertaking several mega public infrastructure projects in Hyderabad. Construction of the new Osmania General Hospital at Goshamahal, estimated to cost ₹2,700 crore, has been expedited. Similarly, the proposed new Telangana High Court complex at Rajendranagar, estimated at ₹2,583 crore, is progressing rapidly. The government is expected to incur substantial capital expenditure this year towards completion of these infrastructure projects.
With a series of large-scale infrastructure, education, health and transport projects lined up for execution this fiscal. the state government is set for one of its biggest capital spending, aimed at accelerating economic growth, improving public infrastructure and strengthening long-term asset creation across the state.
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