Union Coal Minister G Kishan Reddy, addressing a press conference in Delhi on Sunday, provided detailed insights into the fiscal benefits and development initiatives for Telangana under the Union Budget for the 2026-2027 financial year. He emphasized that the budget is strategically designed as a long-term, growth-oriented blueprint aligned with the ambitious Viksit Bharat 2047 vision.
Substantial Increase in Tax Devolution for Telangana
Minister Reddy highlighted a significant boost in financial allocations for Telangana, noting that the devolution of taxes to the state for the upcoming fiscal year is projected at ₹33,180.78 crore. This marks a robust increase of 13.5% from the current financial year's allocation of ₹29,280 crore, underscoring the central government's commitment to enhancing state resources for developmental projects.
Enhanced Support for MSMEs and Pharmaceutical Education
In his address, Reddy outlined key sector-specific benefits. He revealed that close to 38 lakh Micro, Small, and Medium Enterprises (MSMEs) in Telangana are set to gain from the newly announced ₹10,000 crore SME Growth Fund. This includes 18 lakh Udyam-registered MSMEs and an additional 20 lakh Udyam-assisted enterprises from the state, aimed at fostering future champions in the business landscape.
Furthermore, the minister pointed to advancements in pharmaceutical education, mentioning that apart from the establishment of three new National Institutes of Pharmaceutical Education and Research (NIPER), one of the seven existing NIPERs located in Hyderabad will receive substantial investments. This move is expected to bolster research and innovation in the pharmaceutical sector within the region.
Boost for Street Vendors and Municipal Infrastructure
Reddy also shed light on social welfare and urban development initiatives. Under the PM SVANidhi scheme, which provides affordable working capital loans to street vendors, Telangana has emerged among the top five states with 7.75 lakh sanctioned applications. The scheme witnessed a nearly 60% increase in budget allocation compared to the revised estimate nationwide, reflecting enhanced support for informal sector entrepreneurs.
For urban centers like Hyderabad, the minister announced a central incentive of ₹100 crore to encourage the issuance of municipal bonds valued at more than ₹1,000 crore. This initiative aims to facilitate higher-value bond issuances, thereby strengthening municipal finances and enabling improved infrastructure development in the city.
Budget's Broader Economic Vision
While detailing these state-specific benefits, Reddy reiterated that the Union Budget 2026-27 is crafted to drive sustainable economic growth across India. He described it as a comprehensive plan that balances immediate fiscal support with long-term strategic investments, positioning Telangana as a key beneficiary in areas ranging from education and small business promotion to urban governance.
The minister's remarks come amidst broader discussions on the budget's impact, including changes in income tax slabs and cost implications for various goods and services, though he focused primarily on the positive outcomes for Telangana's economy and its capital, Hyderabad.
