Telangana Irrigation Sector: On the Brink? Dip in allocations come as a shocker

The Telangana Budget 2026-27 has reduced irrigation allocation despite higher overall spending, raising concerns over project execution, funding gaps and delays, with experts warning that limited capital investment could impact agricultural productivity and completion of key projects

Hyderabad: The 2026-27 State Budget, presented with a total outlay of Rs 3.24 lakh crore, has allocated Rs 22,615 crore to the Irrigation and Command Area Development Department, reflecting a modest reduction of about Rs 740 crore (roughly three per cent) from Rs 23,355 crore in 2025-26.

This dip comes despite the overall budget rising by nearly Rs 20,000 crore and capital expenditure increasing by over 20 per cent, raising concerns about prioritisation amid competing demands like welfare and urban development.

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In this backdrop, the irrigation sector in Telangana, vital for the state’s agrarian economy, faces growing concerns over funding and execution of ongoing projects.

Allocations have stabilised in the Rs 23,000 crore range under the current administration, following an initial high post-transition. However, critics argue this moderation is inadequate given historical delays, siltation losses, and ambitious targets to expand irrigated area to over 127 lakh acres.

Nearly 55 per cent of the irrigation budget is consumed by non-capital heads such as loan repayments, power bills for lift operations, salaries and maintenance. This leaves only Rs 10,000 to Rs 12,000 crore annually for tangible works like canal construction, tunnels and ayacut development.

Reports suggest actual spending on irrigation works in the current year (2025-26) has been as low as around Rs 4,000 crore in some estimates, far below expectations and prompting concern within the department, which has sought at least a two-fold hike to complete pending schemes.

Key government priorities and initiatives in 2026-27

The budget emphasises a completion culture rather than new mega announcements, focusing on inherited projects amid fiscal constraints and competing welfare demands such as Rythu Bharosa.

Accelerating completion of major lift irrigation schemes such as the Palamuru-Rangareddy, Mahatma Gandhi Kalwakurthy, Nettempadu, Devadula (J Chokka Rao), Sitarama and others would need substantial allocations.

The Irrigation department may have limited funds even for the revival of the Dr B R Ambedkar Pranahita-Chevella project, which has been described as correcting past historic mistakes.

Desiltation works in key reservoirs such as Sriramsagar, Priyadarshini Jurala, Musi and Nagarjunasagar, as per national guidelines to restore storage capacity, also require funds on priority.

Similarly, there is a push for southern districts, with land acquisition prioritised for Kalwakurthy, Nettempadu, Bhima and Koilsagar, along with earlier commitments to operationalise Palamuru-Rangareddy in 20 to 30 months and complete several other projects by March 2027.

Despite substantial past investments, on-ground achievements lag, with many projects remaining midway, affecting crop productivity in northern and southern districts.

The dip in allocations, low spending on actual capital works and absence of bold new initiatives have drawn criticism from opposition parties, farmer groups and experts.

The government is prioritising welfare, debt management and other infrastructure, including Panchayat Raj and Rural Development at Rs 33,688 crore, potentially at the cost of irrigation.