Union Budget 2026–27 Telangana Reaction: Project Funding Debate Explained

Criticism of the Union Budget 2026–27 has resurfaced in Telangana, with state leaders arguing that key projects worth ₹1.63 lakh crore have not received adequate allocation from the Centre. The debate has gained momentum in political circles, with opposition and ruling representatives trading charges over the distribution of funds.

According to state leaders, several pending infrastructure and development proposals — including irrigation, transport connectivity, and industrial expansion projects — were either underfunded or not explicitly mentioned in the budget documents. Critics claim this reflects a pattern of insufficient financial support for Telangana’s long-term growth priorities.

Leaders aligned with the state government have stated that despite Telangana’s contribution to national revenue, expected allocations for major initiatives were not reflected proportionately in the budget. They argue that strategic investments in infrastructure and regional development are necessary to sustain economic momentum.

On the other hand, representatives from the Centre maintain that allocations are made based on national priorities, project readiness, and fiscal considerations. They emphasise that several ongoing schemes continue to benefit Telangana under centrally sponsored programmes.

The issue is likely to remain politically sensitive as discussions continue in the Assembly and public forums. Observers note that budget interpretation often varies across states, particularly when large-scale infrastructure demands are involved.

Further clarity is expected as detailed departmental fund releases and project approvals are reviewed in the coming months.