Telangana Budget 2026-27 Allocates Rs 1,000 Crore to Osmania University for Major Infrastructure Overhaul
In a significant development for higher education in Telangana, the state government has allocated Rs 1,000 crore to Osmania University in the 2026-27 budget, tabled on Friday. This fulfills the promise made by Chief Minister A Revanth Reddy seven months ago during his campus visit, where he announced a corpus fund for upgrading the university's infrastructure.
This marks the first time in its 109-year history that the prestigious institution has received such substantial funding. The allocation comes as part of the state's total budget outlay of Rs 3.24 lakh crore, with Rs 26,674 crore earmarked for the education sector.
Infrastructure Upgrade Plans Already in Motion
According to Vice-Chancellor Kumar M of Osmania University, the institution has identified 19 critical areas requiring infrastructure improvements, ranging from entry gates to academic and research blocks.
"Basic planning, designing, and identification of consultants is completed. Now, we will go for final drawings, designs and estimations and will call for tenders. The foundation of the first building will take place within three months," Kumar told The Times of India.
He explained that construction projects will be undertaken sequentially, with any remaining funds carried forward to the next financial year.
Women's University Receives Rs 400 Crore Boost
Another highlight of the education budget is the allocation of Rs 400 crore to Veeranari Chakali Ilamma Women's University, formerly known as Koti Women's College. Principal Loka Pavani expressed optimism about how this funding would advance the university's infrastructure development.
"Academically we are on par with other universities. We already have 40 undergraduate courses and over 20 postgraduate courses. This budget will take us forward in terms of infrastructure," Pavani stated.
The funds will be utilized for constructing an academic block, hostels, a vice-chancellor's lodge, a guest house, an auditorium, and other essential facilities.
Academics Voice Concerns Over Overall Education Allocation
While welcoming the specific allocations to these universities, education experts have raised serious concerns about what they describe as a "paltry" overall allocation for Telangana's education sector.
The 8.2% of the total budget earmarked for education represents only a marginal increase from the 7.6% allocated in 2025-26. This falls significantly short of both the 18% recommended by the Telangana Education Commission and the 15% promised in the government's election manifesto.
Laxminarayana, professor at University of Hyderabad and organizing secretary of the Telangana Save Education Committee, criticized the government's approach.
"This shows a lack of vision or policy of the state to strengthen government institutes and provide quality education to all children," he said, adding that the government appears focused on opening new institutions rather than strengthening existing ones.
Disappointment Among Other State Universities
The budget has left professors from other state universities feeling neglected. Kakatiya University, which recently completed 50 years, received no special funding for its golden jubilee year.
"We were expecting some special fund for the golden jubilee year, but nothing has been announced," lamented R Mallikarjuna Reddy, a professor at Kakatiya University.
Warning About Economic Implications
Education advocates warn that inadequate investment in education could undermine Telangana's economic ambitions. A Santosh Kumar, president of the Telangana Schools Technical Colleges Employees Association, emphasized the connection between education funding and economic development.
"When technology is changing at a rapid pace and old job roles are being destroyed, how is this budget enough to prepare our students to compete with others across the world?" Kumar questioned.
He further cautioned that without sufficient budget allocation to education, the state risks facing human resource shortages in coming years, potentially hindering its goal of becoming a USD 3 trillion economy by 2047.
The budget allocations have sparked a broader conversation about educational priorities in Telangana, balancing specific institutional support with systemic needs across the state's higher education landscape.
