Union budget reflects continued neglect of Telangana, says Harish Rao
Former Finance Minister T Harish Rao criticised the Union Budget 2026–27, alleging continued neglect of Telangana by the Centre. He said the budget ignored key projects such as the Regional Ring Road, Hyderabad Metro expansion, and irrigation schemes, while failing to establish new institutions in the State.
Hyderabad: Former Finance Minister T Harish Rao said the Union Budget 2026–27 had once again reflected the continued neglect of Telangana by the Centre.
“Years are passing and budgets are changing, but there is no change in the Centre’s discriminatory approach towards Telangana in funds allocation,” he said.
Despite Telangana playing a crucial role in the country’s economic growth, the budget failed to deliver justice to the State. Even after 12 years of Telangana’s formation, the Centre miserably failed to implement the assurances given under the Andhra Pradesh Reorganisation Act, he said in a statement on Sunday.
There were no allocations for key projects like the Regional Ring Road, Hyderabad Metro Rail expansion, railway projects, or irrigation schemes. Apart from these, there was no mention of institutions such as IIM, Navodaya schools, or Kendriya Vidyalayas for Telangana.
Not even a single new project had received financial support, he pointed out.The former Minister said despite the State electing eight BJP MPs and eight Congress MPs, Telangana had not received even one new central project.
“Both national parties have completely failed to raise Telangana’s voice in Parliament. Even with two Union Ministers from Telangana, failure to secure funds in the budget is a matter of shame,” Harish Rao said, pointing out that though Chief Minister A Revanth Reddy had visited New Delhi more than 60 times, the outcome for Telangana in the budget was zero. These visits remained politically-oriented with no tangible benefit to the State, he alleged.
“As Revanth Reddy mortgaged Telangana’s interests for his personal political gains, there is no priority for the State in the Union Budget,” Harish Rao said.
Overall, the Union Budget presented by the Finance Minister was anti-Telangana, anti-farmer, and anti-people. The budget failed to accord adequate importance to agriculture, health, and education, he said. The increase in Securities Transaction Tax (STT) on Futures and Options was a move that would damage market confidence. By steadily reducing the tax share due to States, the spirit of fiscal federalism has been seriously weakened, he maintained.
While the Centre speaks about cooperative federalism, discrimination against States in practice was undemocratic. There was no real tax relief for the middle class, inflation was ignored, and employment generation remains limited to paperwork, he said, adding that this was a budget with no clear vision for the country’s future. The stock market closing with losses after the budget reflects widespread disappointment, the former Minister added.
Even in such adverse conditions, Telangana’s progress was possible only because of the strong financial governance during K Chandrasekhar Rao’s ten-year rule. The 16th Finance Commission clearly acknowledged Telangana’s achievements.
By 2023–24, Telangana’s own tax revenue reached nearly 80 percent, the highest in the country. Telangana emerged as one of the States with the least dependence on central funds, he pointed out.
Historic farmer-centric schemes such as Rythu Bandhu were implemented only in Telangana. Mission Kakatiya launched by the KCR government became a national role model and was now being adopted as Amrit Sarovar across the country, he said, adding that the Union Budget’s announcement on the development of “500 reservoirs and Amrit Sarovars” itself reflected this success.
