The Telangana government has placed several requests before the Centre
Hyderabad:Telangana has pinned high hopes on the Union Budget 2026–27 to be presented in Parliament on Sunday, expecting major financial support and policy reliefs from the Centre to accelerate infrastructure, irrigation, education and health sector expansion.
Ahead of the Budget, the state government made repeated representations seeking higher allocations for key projects and relaxation of FRBM borrowing limits to enable additional resource mobilisation, particularly for social sectors.
At the pre-Budget meeting convened by Union finance minister Nirmala Sitharaman in Delhi on January 10, Deputy Chief Minister Mallu Bhatti Vikramarka had outlined Telangana’s priorities and submitted a detailed wishlist.
The state sought early approval for the Regional Ring Road (RRR) project covering both northern and southern segments, stating that land acquisition has already begun in anticipation due to its importance in unlocking regional development potential. It also urged immediate sanction for the long-pending second phase of the Hyderabad Metro Rail project.
The state requested that an Indian Institute of Management (IIM) be established in Hyderabad and that Kendriya Vidyalayas be sanctioned in the remaining nine districts and Jawahar Navodaya Vidyalayas in the remaining 16 districts. It also pressed for approval of airports at Peddapalli, Warangal, Adilabad and Kothagudem. Telangana sought clearance for a semiconductor project under the national mission, citing its strong ecosystem, and approval for Electronic Manufacturing Cluster–2 near Thatiparthy in Rangareddy district, where land has been identified.
Telangana urged that states’ fiscal deficit limits be raised to at least 4 per cent of GSDP, that 50-year interest-free loans be converted into grants and doubled, and that borrowing for education and health be kept outside FRBM limits.
It proposed that a 25 per cent reduction in Central spending on state and concurrent subjects could free over `2.21 lakh crore annually for direct transfers to states. The government also flagged the rising share of cesses and surcharges, now about 20 per cent of gross Central taxes, which reduces the divisible pool and lowers effective devolution to around 30 per cent despite a 41 per cent recommendation. It suggested crediting surcharge proceeds to a non-lapsable infrastructure fund or merging them with basic tax rates.
Telangana sought safeguards against revenue loss under GST rate reductions, full acceptance of Sixteenth Finance Commission fund transfer recommendations after losing earlier state- and sector-specific grants, and reconsideration of replacing MGNREGA with the new rural employment framework that raises state funding burden, warning it could weaken demand-based employment guarantees and strain state finances.
