Budget faces flak over cuts in irrigation, SC/ST welfare and farm sector allocations

The Telangana Budget 2026-27 has drawn criticism from Opposition leaders and experts over reduced allocations to agriculture, irrigation and welfare sectors despite a higher outlay, raising concerns about rural income, employment and the government’s spending priorities

Hyderabad: The State Budget for 2026-27 has drawn criticism from Opposition leaders and policy analysts, who alleged that allocations to several key sectors have been reduced despite an increase in the overall outlay. The budget reflects a contraction in spending at the grassroots level, raising concerns over agriculture, irrigation and welfare programmes, they said.

Telangana, being largely agrarian, was expected to see higher allocations for agriculture and irrigation. However, budget figures show that irrigation allocation has been reduced from Rs 23,373 crore in 2025-26 to Rs 22,165 crore, while agriculture spending has come down from Rs 24,439 crore to Rs 23,179 crore. Despite allocations made, only around Rs 15,000 crore was released to the Irrigation department, sources said.

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Critics said the cuts come at a time when the Congress government is promising to complete major irrigation projects and improve farmers’ income by providing better assistance. The steepest reductions were seen in welfare allocations for Scheduled Castes and Scheduled Tribes. SC welfare allocation has dropped from Rs 40,234 crore to Rs 11,784 crore, while Tribal Welfare has been reduced from Rs 17,169 crore to Rs 7,937 crore. Opposition leaders said the cuts contradict the government’s claims of prioritising weaker sections.

Allocations for employment-linked sectors have also seen a decline. The Industries department allocation has been lowered from Rs 3,527 crore to Rs 3,490 crore, even as the government claims that investments are increasing and is also making efforts to monetise industrial lands through initiatives like HILT policy. Funding for the handloom sector has been cut from Rs 371 crore to Rs 258 crore, raising concern among the weavers community. Animal Husbandry allocation also fell from Rs 1,674 crore to Rs 1,529 crore.

Economists said reductions in agriculture, irrigation and welfare spending could affect rural income and employment if not compensated through effective schemes. They said decreased allocations to priority sectors, even as the total budget increased, raise doubts about spending priorities. However, the government maintained that the budget balances welfare commitments with fiscal discipline.