đź“Ť February 2, 2025 – The Union Budget for 2025-26 has once again left Telangana disappointed, as the state’s expectations were not fully met for the second consecutive year. Despite the state’s growing economic significance and contributions to the national economy, the budgetary allocations for Telangana have been seen as insufficient and not in line with its developmental needs.
Key Budgetary Announcements and Telangana’s Expectations
Telangana, a state that has shown remarkable growth in recent years, especially in sectors like IT, agriculture, and industry, had high hopes for the Union Budget to address various infrastructural and welfare needs. However, much to the disappointment of its leaders and citizens, the budgetary provisions for the state fell short in several key areas. The state was hoping for more funds to address critical issues such as irrigation, healthcare, and infrastructure development, but the allocations did not meet expectations.
In the 2025-26 Union Budget, Telangana was hoping for increased allocations for the ongoing Kaleshwaram Lift Irrigation Project and the development of new industrial corridors. There was also anticipation for enhanced financial support for the State’s flagship welfare schemes, such as Rythu Bandhu (farmer investment support scheme) and Kalyana Lakshmi (a scheme aimed at providing financial assistance to the families of brides in the state).
Critical Gaps in Key Sectors
Agriculture and Irrigation Projects
Despite Telangana’s heavy reliance on agriculture and the state’s large irrigation projects, the Union Budget did not provide any significant boost to ongoing or new irrigation projects. The state had hoped for further support for the Kaleshwaram project, which is touted to be the world’s largest lift irrigation project. However, the allocated funds fell short of the expected amounts.
Healthcare and Education
Telangana also sought a significant increase in funding for its healthcare and education sectors, particularly after the ongoing challenges posed by the pandemic. While there were provisions for national healthcare schemes, Telangana felt that the state-specific needs were overlooked, especially in rural and semi-urban areas.
Infrastructure Development
Infrastructure was another major area where the state was hoping for more assistance. The development of national highways and urban infrastructure projects was crucial for the state’s economic growth, particularly with Hyderabad emerging as a major tech hub. However, the allocations to support the state’s infrastructure expansion were minimal.
Political Reaction from Telangana Leaders
Political leaders in Telangana have been vocal in their disappointment with the Union Budget, with many expressing concern over the state’s marginalized position in the national economic scheme of things. Chief Minister K. Chandrashekar Rao (KCR), who had earlier flagged the state’s concerns during his interactions with Union ministers, was visibly upset with the lack of significant provisions for Telangana.
Opposition parties in the state also echoed similar sentiments, accusing the Union government of ignoring the state’s rightful share of resources. They argued that Telangana, as a relatively new state, needed greater financial support from the Centre to bridge the development gap and meet the aspirations of its people.
Impact on Telangana’s Growth Prospects
The lack of sufficient financial provisions from the Union Budget may hinder the state’s growth trajectory in the coming fiscal year. Key developmental programs, particularly in irrigation, agriculture, and infrastructure, may face delays or scaling down without the anticipated federal support. Furthermore, the private sector in Telangana, especially in the IT and industrial sectors, could also feel the pinch as the government might not have the necessary funds to continue supporting business incentives and subsidies.
The state’s budget deficit may widen as it tries to make up for the shortfall, potentially affecting fiscal health and overall economic stability. This situation may also put pressure on state-level schemes like Rythu Bandhu and Kalyana Lakshmi, which are integral to the welfare of the state’s citizens.
Looking Ahead: Telangana’s Future Strategy
As the budget period progresses, Telangana’s government may have to take a more aggressive stance in lobbying for increased allocations. State officials may also seek to mobilize resources from private investors or focus on inter-state collaborations to make up for the lack of federal support.
Additionally, Telangana could explore other avenues of financing, such as public-private partnerships (PPP) and international funding for major infrastructure projects. The state government will likely work towards strengthening its local revenue base to ensure that critical projects do not stall.
Conclusion
For the second year in a row, the Union Budget has failed to deliver substantial financial support for Telangana, leaving the state sulking and disappointed. While the Union government has provided allocations in some key sectors, Telangana’s specific needs in irrigation, healthcare, education, and infrastructure were largely overlooked. As the state faces these challenges, it will likely have to explore alternative methods of financing and continue its efforts to push for greater attention to its development in future budgets.
