Telangana Proposes Rs 30,000 Crore Grants in Anticipation of Union Budget 2025

As the nation gears up for the Union Budget 2025, all eyes are on Union Finance Minister Nirmala Sitharaman, who is set to present the budget on Saturday. The Telangana government has placed significant expectations on the upcoming budget, hoping for crucial financial allocations to support key projects and initiatives aimed at the state’s development.

The Telangana government has already submitted detailed proposals to the central government, requesting funding for multiple high-priority schemes. Among these are projects vital to the state’s infrastructure, water management, and urban expansion. The government has made its case to the center, highlighting that adequate funding is necessary to meet the state’s development goals.

Top Priorities for Telangana in Union Budget 2025

1. Key Infrastructure Projects: Telangana has formally requested funds for various initiatives, including the Hyderabad Regional Ring Road (RRR), the Musi River Revitalization Project, and the expansion of the metro network. The state has highlighted the need for financial support to help these projects achieve timely completion and contribute to the region's growth.

2. Andhra Pradesh Bifurcation Act Commitments: The state government is also seeking funds to fulfill the promises made under the Andhra Pradesh Bifurcation Act, particularly for the development of Telangana's infrastructure and urban centers.

3. Musi River Revival: For the Musi River revival, Telangana has proposed a budgetary requirement of Rs 14,000 crore. The government intends to request this funding in phases to ensure that the project’s progress remains steady and sustainable.

4. Water Supply and Management: Another crucial request concerns the diversion of Godavari waters. The Telangana government aims to address Greater Hyderabad's growing drinking water demands and ensure the continuous flow of clean water in the Musi River, thereby improving the health of city residents.

5. Road Connectivity Improvements: Telangana has also sought central funding for the construction of radial roads linking Hyderabad city to the Hyderabad Regional Ring Road, improving connectivity and easing traffic congestion.

6. Metro Rail Expansion: With an emphasis on addressing Hyderabad’s traffic challenges, the state has requested the extension of the metro rail system from Shamshabad Airport, aiming to connect all major areas of the city.

7. Increased Grants from the Center: The Telangana government is advocating for an increase in the grants it receives from the central government. While the state had been allocated Rs 13,179 crore in 2022-23, it only received Rs 9,730 crore in 2023-24. This shortfall has hampered the funding of various important schemes.

8. Recent Shortfalls in Grants: Over the past year, Telangana saw a significant reduction in grants, with a 76 per cent cut, which led to the allocation of only Rs 21,636 crore in the 2024-25 state budget. However, only Rs 4,771 crore has been received in the first nine months, with the expectation that an additional Rs 5,000 crore may not materialize in the coming months.

9. Request for Nearly Rs. 30,000 Crore: Given the previous shortfalls, the Telangana government is requesting nearly Rs 30,000 crore in grants for the upcoming year to ensure the completion of ongoing and upcoming projects without delays.

10. Risk of Funding Gaps: If the expected funds are not allocated by the central government, the Telangana government may face difficulties in funding several ambitious projects, potentially leading to delays or disruptions in their execution.

As Union Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025, Telangana’s hopes for much-needed financial support remain high. The state's development plans hinge on the funding from the center.