Telangana Industry Calls for Growth-Focused Budget Ahead of March 20 Announcement
With the Telangana state budget scheduled for March 20, industry leaders across the state have united to urge the government to present a growth-oriented financial plan for the 2026-27 fiscal year. Key demands include significantly higher capital spending, stronger support mechanisms for Micro, Small, and Medium Enterprises (MSMEs), and focused investments in critical infrastructure, power, and emerging economic sectors.
Industry Leaders Outline Specific Budget Expectations
FTCCI president R Ravi Kumar provided detailed analysis of current budget allocations and future needs. He noted that the 2025-26 budget of Rs 3.05 lakh crore was primarily concentrated on welfare programs, agriculture, and infrastructure development. For the upcoming fiscal year, despite anticipated resource constraints, industry expects a 5% to 7% increase in overall expenditure to fuel economic expansion.
Kumar highlighted a critical structural issue: "Currently, nearly 75% of the budget is consumed by revenue expenditure, leaving very limited room for capital creation that drives long-term growth." He specifically called for the government to increase capital expenditure by at least 2% year-on-year to improve infrastructure quality and sustain economic momentum.
Ambitious Economic Targets Require Strategic Investment
The industry's budget demands are directly tied to Telangana's ambitious economic goals. The state aims to become a $1 trillion economy by 2034 and further expand to $3 trillion by 2047. Kumar emphasized that achieving these targets will require a substantially stronger manufacturing base, along with specialized industrial corridors and industrial parks developed in Tier-II and Tier-III cities across the state.
On the crucial topic of industrial promotion, Kumar revealed significant gaps between budget allocations and actual disbursements. "Previous budgets allocated between Rs 2,000 crore and Rs 2,500 crore for various subsidies," he explained, "but actual releases were much lower, typically around Rs 500 crore." This discrepancy has resulted in pending subsidies now mounting to over Rs 5,750 crore. Industry now expects approximately Rs 3,500 crore to be properly earmarked and disbursed on time to support businesses, with particular emphasis on MSMEs.
Balancing Growth with Quality of Life Concerns
CII Telangana chairman Goutham Reddy Mereddy addressed broader development considerations. He stressed that the state's long-term growth ambitions depend on maintaining a careful balance between infrastructure development, quality of life, and affordability. "Rising traffic congestion and increasing cost of living could negatively impact Telangana's investment appeal if not properly addressed through strategic budget measures," Mereddy warned.
Reddy also called for renewed support to the startup ecosystem, including revival of a state-backed venture capital fund. He noted that Hyderabad is rapidly emerging as a significant startup hub alongside its already booming Information Technology and Global Capability Center ecosystems.
Additional Sector-Specific Recommendations
Industry representatives presented several additional budget priorities:
- Power Infrastructure: Higher allocations for power infrastructure development, subsidies to Distribution Companies (DISCOMs), and expanded renewable energy initiatives
- Employment-Intensive Sectors: Targeted funding for tourism, livestock, and fisheries sectors that generate substantial employment
- Skill Development: Enhanced programs for skill development and rural entrepreneurship, with particular focus on women's economic participation
The comprehensive industry recommendations come as the state government prepares its budget presentation, with business leaders emphasizing that strategic investments now will determine Telangana's economic trajectory for decades to come.
