HYDERABAD: Deputy Chief Minister Mallu Bhatti Vikramarka, who also holds the Finance portfolio, said the Union Budget has once again failed to address the critical challenges faced by Telangana. He argued that the increased cesses, while reducing customs duties on certain goods, would shrink the divisible pool of taxes, negatively impacting states’ revenue share.
He pointed out that the rise in Centrally Sponsored Scheme (CSS) allocations, while notable, moves away from the principles of fiscal federalism, undermining state autonomy. Vikramarka emphasised that despite repeated calls for greater autonomy, the Centre’s fiscal decisions continue to disregard state priorities.
He also took aim at the government’s allocation to Bihar, claiming that the state, despite its surplus revenue, was receiving substantial funding, while Telangana remained neglected. Bhatti noted that irrigation projects, which are critical to the state’s agricultural economy, were completely ignored in the Budget. “The Budget’s focus on rural prosperity and agricultural growth rings hollow when it ignores the state’s pioneering efforts in water management,” he said.
Despite Telangana’s capacity for effective resource utilisation, Vikramarka criticised the absence of support for AI Centres of Excellence in the state. Additionally, he noted the omission of the rural employment guarantee scheme and criticised the Centre for failing to address the needs of the poor, youth, farmers and women.
‘Budget biased against TG’
IT & Industries Minister D Sridhar Babu accused the Centre of systemic exclusion of Telangana. He pointed out that the state contributes 5% to the national GDP but does not receive funding proportionate to its economic strength. Despite remitting `26,000 crore in taxes to the Centre, Telangana has been denied its rightful share, Sridhar said. He argued that while election-bound states like Bihar, Delhi and Gujarat received generous allocations, Telangana was sidelined.
He also highlighted the state’s unmet demands, including funding for the expansion of the Hyderabad Metro, Musi river redevelopment and irrigation projects. The demand for better railway connectivity was completely brushed aside, he said, adding that the demand for a Tribal University was rejected.
‘Vikas only for poll-bound states’
Irrigation and Civil Supplies Minister N Uttam Kumar Reddy also condemned the Budget for being “anti-farmer and anti-poor”, alleging that the BJP government used it as a political tool to benefit election-bound states. He also pointed out the failure to grant national status to the Palamuru-Ranga Reddy Lift Irrigation Project and slammed the Centre for failing to allocate funds for Telangana’s PDS and welfare schemes.
He expressed frustration over the BJP’s approach, which he believes undermines the spirit of federalism by rewarding select states for political reasons. “Prime Minister Narendra Modi speaks of ‘Sabka Saath, Sabka Vikas’, but this Budget exposes his real strategy — vikas (development) only for election-bound states,” the minister quipped.
‘Injustice to TG’
TPCC chief B Mahesh Kumar Goud echoed similar sentiments, labelling the Union Budget as more reflective of Bihar’s priorities than those of the nation. He accused the NDA government of using Union funds to influence the upcoming elections in the northern state. He criticised Finance Minister Nirmala Sitharaman’s Budget speech, claiming it ignored Telangana’s contribution to the national economy.