Where is Telangana in ‘Viksit Bharat’?

A Union Budget is more than an annual statement of accounts. It is a political document that reflects a government’s priorities, its commitment to federal principles, and its vision of equitable national development. Expectations, therefore, are naturally high each year that the Union Budget will treat India’s States with fairness and balance.

The Union Budget for 2026–27, presented by Finance Minister Nirmala Sitharaman with an outlay of ₹53.47 lakh crore, once again falls short of that expectation, especially regarding Telangana.

Despite the repeated invocation of the slogan “Viksit Bharat”, the Budget reveals a troubling gap between rhetoric and reality. In practice, political considerations appear to have outweighed the constitutional promise of cooperative federalism. Telangana, a State that has consistently contributed to national economic growth, finds itself marginalised yet again in allocations, approvals, and long-pending commitments.

The Union government is constitutionally obligated to rise above partisan considerations while allocating resources for State development. Yet, from the time of its formation, Telangana has faced a pattern of neglect that cannot be dismissed as coincidence. The 2026–27 Budget reinforces this perception. It is hardly surprising, therefore, that criticism has grown sharper, with the Union Finance Minister being accused of prioritising political calculations of the NDA over a balanced national growth strategy.

Repeated representations made by the Telangana government appear to have had little impact. Chief Minister A. Revanth Reddy and his Cabinet colleagues have met the Prime Minister and senior Union Ministers on several occasions, submitting detailed proposals for critical infrastructure and urban development projects. None have found reflection in the Budget.

The State sought Central assistance for the 350-kilometre Regional Ring Road (₹34,367.62 crore), radial roads around Hyderabad (₹45,000 crore), Metro Rail expansion (₹44,028 crore), the Godavari–Musi river linkage (₹6,000 crore), the Musi riverfront development project (₹17,212.69 crore), and a greenfield highway connecting Bandar port to Hyderabad through a dry port corridor (₹17,000 crore). All these proposals were effectively ignored. Even the long-pending demand for new airports within the State failed to merit attention.

Incidentally, the absence of allocations extends beyond physical infrastructure. Telangana’s strengths in biotechnology, pharmaceuticals, and emerging semiconductor ecosystems were overlooked, even as similar sectors received policy and financial support elsewhere. Tourism, heritage conservation, and cultural promotion areas where Telangana has both historical depth and economic potential found no place in the Budget. Equally striking was the absence of any focus on rare earth mineral exploration, despite the presence of coal mining operations in Singareni and the region’s geological potential.

Equally serious is the continued silence on statutory commitments arising from the Andhra Pradesh Reorganisation Act. Promised institutions such as the Bayyaram steel plant, Navodaya Vidyalayas, and an Indian Institute of Management (IIM) have remained unaddressed for years together. Announcements of high-speed rail corridors linking Hyderabad with Pune, Bengaluru, and Chennai were made, but Telangana’s long-standing demands for new railway lines have once again been sidelined.

This neglect is especially stark when viewed against the State’s contribution to the national economy. The State accounts for 5.01 per cent of India’s Gross Domestic Product. On that basis, it should have received approximately ₹3.76 lakh crore from the Centre over recent years. Instead, in the last five years, it received only ₹1.84 lakh crore amounting to just 2.45 per cent resulting in an estimated shortfall of ₹1.92 lakh crore.

Telangana is among the leading contributors to direct taxes and GST collections. Over the past five years, the State contributed ₹4.32 lakh crore to the Union exchequer, representing nearly 3.87 per cent of national collections. Yet data placed before Parliament by the Union Minister of State for Finance shows that between 2018–19 and 2023–24, Telangana contributed ₹4,35,920 crore but received only ₹3,76,175 crore in return at a recovery rate of 86.29 per cent, implying a deduction of 13.71 per cent.

Even in the current financial year, while the State was projected to receive ₹22,782 crore from the Centre, barely ₹4,000 crore had been released in the first 10 months. Such delays strain State finances and undermine development planning.

Ironically, this fiscal neglect comes at a time when the Telangana government is aggressively pursuing long-term economic growth under its “Telangana Rising 2047” vision, aiming to build a $3 trillion State economy. Global investment summits in Hyderabad, along with sustained engagement at the World Economic Forum in Davos in 2024, 2025 and 2026, have brought substantial investment commitments. However, these efforts are proceeding with minimal support from the Union government.

The perception that Telangana is being penalised for political reasons has only strengthened. Statements made earlier by the Prime Minister questioning the very formation of the State continue to resonate. When Budget after Budget excludes Telangana from meaningful allocations, the charge of political bias appears increasingly difficult to refute.

This concern extends beyond one State. The broader pattern of allocating resources based largely on population metrics disproportionately favours northern States, while southern States many of which have successfully implemented population control and contributed disproportionately to economic growth, are left disadvantaged. Such an approach risks eroding the spirit of federalism that underpins India’s constitutional framework.

It is also noteworthy that despite the BJP having eight MPs from Telangana and two Union Ministers from the State, there has been little visible advocacy for Telangana’s interests. The continued silence of State BJP leaders on successive Budget omissions has not gone unnoticed.

Beyond Telangana, the 2026–27 Budget has disappointed wider sections of society. Expectations of income-tax relief for the middle class were unmet. There were no substantive enhancements for SC, ST, and backward class welfare. Manufacturing growth has slowed significantly from UPA-era levels, productivity growth has halved, and the rupee’s depreciation to nearly 92 against the dollar remains unaddressed. Employment-generation programmes such as MGNREGA received no meaningful reassurance.

The contradiction is stark. A government that proclaims “Viksit Bharat” cannot afford to sideline States that are engines of growth. Development cannot be selective, nor can national progress be built on regional exclusion.

If India is to truly become a developed nation, every State must be treated as an equal stakeholder. Persistent fiscal discrimination against Telangana not only undermines its growth prospects but also weakens the federal compact itself. It is imperative that political differences give way to constitutional responsibility.

Failing that, the promise of Viksit Bharat risks remaining a slogan rather than a shared national reality.