Union Coal Minister G Kishan Reddy announced on Sunday that Telangana is set to receive a substantial increase in tax devolution for the upcoming fiscal year 2026-2027. The minister disclosed that the state will be allocated ₹33,180.78 crore, marking a significant rise of 13.5% from the current financial year's allocation of ₹29,280 crore. This announcement was made during a press conference held in Delhi, where Reddy elaborated on the broader implications of the Union Budget for the state.
Budget Focused on Long-Term Growth and Viksit Bharat Vision
G Kishan Reddy characterized the Union Budget as a forward-looking, growth-oriented blueprint aimed at achieving the Viksit Bharat 2047 vision. He emphasized that the budget is designed to foster sustainable development and economic resilience across the nation, with specific benefits tailored for states like Telangana. The minister highlighted that this increase in tax devolution reflects the central government's commitment to supporting regional growth and addressing local needs through enhanced financial resources.
Major Investments in Hyderabad's Pharmaceutical Education
In a key development for Hyderabad, Reddy revealed that one of the seven existing National Institutes of Pharmaceutical Education and Research (NIPERs) located in the city will receive significant investments. This move comes alongside the establishment of three new NIPERs nationwide, underscoring the government's focus on bolstering pharmaceutical education and research. The investment is expected to enhance Hyderabad's status as a hub for pharmaceutical innovation and contribute to the state's educational and economic landscape.
Boost for Street Vendors and MSMEs in Telangana
The minister also shed light on several initiatives benefiting Telangana's small businesses and entrepreneurs. Under the PM SVANidhi scheme, which provides affordable working capital loans to street vendors, Telangana ranks among the top five states with 7.75 lakh sanctioned applications. Additionally, the scheme saw a close to 60% increase in budget allocation compared to the revised estimate nationwide, indicating strong support for this sector.
Furthermore, Reddy announced that approximately 38 lakh Micro, Small, and Medium Enterprises (MSMEs) in Telangana will benefit from the newly introduced ₹10,000 crore SME Growth Fund. This includes 18 lakh Udyam-registered MSMEs and 20 lakh Udyam-assisted enterprises from the state. The fund aims to create future champions in the MSME sector by providing financial assistance and fostering growth opportunities.
Incentives for Municipal Bonds in Hyderabad
To encourage urban development and infrastructure projects, the central government has proposed an incentive of ₹100 crore for cities like Hyderabad that issue municipal bonds of higher value. Specifically, this incentive applies to single bond issuances exceeding ₹1,000 crore. This initiative is designed to promote local governance and enable cities to raise funds for critical infrastructure projects, thereby enhancing urban living standards and economic vitality.
Overall, G Kishan Reddy's announcements underscore a multifaceted approach to supporting Telangana's development through increased financial devolution, targeted investments in key sectors, and incentives for urban financing. These measures are poised to drive economic growth, improve public services, and strengthen the state's position in the national economy.
