Telangana budget 2025-26: Municipal Administration & Urban Development gets ₹17,677 crore

Telangana government allocates ₹17,677 crore forMunicipal Administration and Urban Development (MA&UD) department

The Congress Government in Telangana has announced an allocation of ₹17,677 crore for funding the various projects under the Municipal Administration and Urban Development (MA&UD) department including a novel three year ₹4,500 crore investment plan for the growth and development of newly established municipalities and urban development authorities for enhanced urban infrastructure and sustainable urban development.

“Telangana is witnessing the fastest urbanization in the country, driven by the rapid expansion of IT industries, infrastructure development, and transformative government initiatives,” said Deputy Chief Minister and Finance Minister Bhatti Vikramarka while presenting the budget for the financial year 2025-26 in Assembly on Wednesday (March 19, 2025).

Key updates from Telangana budget 2025-26 presented on March 19, 2025

The government is “actively developing” tier-two cities also like Warangal, Nizamabad, and Khammam. While Warangal is being established as a hub for education, healthcare, and IT, Nizamabad and Khammam are being transformed into key centres for agriculture-based industries and manufacturing.

For the capital city experiencing rapid growth, he mentioned about the ‘H-CITI’ plan to strengthen urban infrastructure and efficiently manage increasing traffic congestion. In the first phase, 31 flyovers, 17 under passes and 10 road expansion projects were taken up at an estimated investment of ₹7,032 crores. Another ‘beautification’ projects worth ₹150 crore are in progress, he said.

A ₹5,942 crore Integrated Stormwater Drainage Project has also been approved to enhance flood management and prevent waterlogging, ensuring better urban resilience for the capital region. The Finance Minister talked about SPEED - Smart, Proactive, Efficient, and Effective Delivery, initiative to fast-track the completion of 19 key projects within the stipulated timeframe like Musi Riverfront Development, Metro Rail Expansion, Regional Ring Road Construction, etc.

But, no specific allocation has been announced made for these projects. It is being expected that ₹1,150 crore allocated under different heads could be utilised for these works and the amount could be increased depending on the requirement.