Union Budget 2025-26 leaves Telangana sulking for the second year in a row

Telangana receives minimal funding in Union Budget 2025-26, impacting major projects; State government left disappointed with lack of support.

For the second successive year, Telangana got short shrift in the Union Budget with almost zero allocation for any of the projects for which the State government had urged central funding.

There was absolutely nothing to cheer about for the State with the wish list presented by Chief Minister A. Revanth Reddy and his cabinet colleagues, from time-to-time, drawing a blank.

Though the Chief Minister and his cabinet colleagues, more than a dozen times, toured Delhi scouting for central assistance for the ambitious projects, the Centre appears to have given a go-by. The State government was banking heavily on funding for the 350-km long Regional Ring Road (RRR) and radial roads projects that would cover major parts of the north and south Telangana region.

Similarly, the much-touted second phase of the Hyderabad Metro Rail project - covering five new corridors - did not evoke any response. A sum of ₹45,000 crore was needed to complete the five corridors in a phased manner. But it looks unlikely that there would be any forward movement on it. Similarly, the much talked about Musi River Front Development project at a cost of ₹14,100 crore, has not moved the Centre if the Union Budget 2025-26 is any indication.

Other projects like the Godavari-Musi river link project, the Sewerage Master plan for Hyderabad, the Warangal Underground draining plan, Greenfield highway from Bandar port to Dry port in Telangana were ignored in the Budget.

This apart, Government was hoping that it would get some allocation for the proposed Bayyaram Steel Plant, Kazipet coach factory, Palamuru Ranga Reddy Lift Irrigation project besides the assurances mentioned in the Andhra Pradesh Reorganisation Act 2014. However, the hopes but drew a blank.

It is to be seen how the Centre’s focus on the agriculture sector would benefit Telangana. Developing Agri Districts programme covering 100 districts across the country may not apply to the State as many of the districts do not come under the low productivity, moderate crop intensity and below average parameters.