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

Posted on February 1, 2025 By admin


Though Telangana submitted a wish-list of requirement for various projects, it drew a blank in the Union Budget 2025-26. The image is used for representative purposes only.
| Photo Credit: Getty Images

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.

Banked heavily on funds for RRR and radial roads

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.

No movement on funds for Metro Phase-II and Musi project

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.

Other hopes which were unfulfilled

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.

Similarly, the State government needs to watch out if it can leverage the National Mission on High Yielding Seeds to strengthen the research eco-system, targeted development and propagation of seeds with high yield, and commercial availability of more than 100 seed varieties. Nizamabad is the hub of seed processing units and the expectation is that the Mission would focus on the district. Cotton and pulses are grown widely in Telangana and the Centre’s focus on these crops is certain to boost the agriculture economy.

Other areas, which might help the State is the intense focus on the MSME sector. With 22.73 lakh MSMEs in Telangana, it is not clear how many micro-enterprises can make use of the credit card facility of ₹5 lakh if they are enrolled in the UDYAM portal.

A positive outlook could be the announcement of measures for the toy sector to develop them as clusters, improve skills and the manufacturing eco-system. The toys industry in Nirmal district is famous in Telangana for its distinct toys. Big hospital groups in the State could access benefits from Centre’s announcement to encourage medical tourism.

On the whole, this year’s Union Budget has yet again disappointed the State and it is to be seen, how the Congress Government reacts to another round of dismal allocation even as the BJP leadership in the State is gung ho on what its leaders are claiming to be game changer budget.

Published – February 01, 2025 06:12 pm IST



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