Union Budget FY27: Telangana to get ₹33,180.78 Cr from central taxes, an increase of ₹3,281.01 Cr
The enhanced devolution comes even as the Centre announced key infrastructure proposals, including three high-speed railway corridors passing through Hyderabad
By Newsmeter Network
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New Delhi: Telangana’s share in central taxes has been raised to 2.174 per cent for 2026–27.
According to the Union Budget 2026–27, the state will receive Rs 33,180.78 crore, an increase of Rs 3,281.01 crore.
The enhanced devolution comes even as the Centre announced key infrastructure proposals, including three high-speed railway corridors passing through Hyderabad.
Higher share in Central Taxes
As per the Budget presented by Union Finance Minister Nirmala Sitharaman, Telangana’s share in the divisible pool of central taxes has been fixed at 2.174 per cent for 2026–27. This translates into total tax devolution of Rs 33,180.78 crore.
The break-up includes:
Corporation tax: Rs 11,808.15 crore
Central GST (CGST): Rs 9,074.92 crore
Customs duty: Rs 1,770.30 crore
Central excise duty: Rs 754.15 crore
Other taxes: Rs 32.98 crore
In the previous Budget, Telangana was allocated Rs 29,899.77 crore under central taxes.
Three High-Speed Rail Corridors via Hyderabad
Among the seven high-speed railway corridors proposed nationwide to promote faster inter-city travel, three corridors will connect Hyderabad, giving a major boost to the State’s transport infrastructure.
The proposed routes are:
Pune–Hyderabad
Hyderabad–Bengaluru
Hyderabad–Chennai
These corridors are expected to significantly improve regional connectivity and economic activity.
Telangana Chosen for SNA Sparsh Pilot
Telangana has been selected as one of six States for the pilot implementation of the ‘SNA Sparsh’ module, aimed at ensuring greater transparency in the transfer of funds under centrally sponsored schemes. The system will be rolled out nationwide after the pilot phase.
GST compensation details
Budget documents also clarified that Telangana received ₹6,949.49 crore during 2020–21 and 2021–22 under the ‘back-to-back loan’ mechanism introduced by the Centre to compensate States for revenue losses following the implementation of GST.
Allocations to Central Institutions in Telangana
Under the Pradhan Mantri Swasthya Suraksha Yojana, the Centre has allocated Rs 2,005 crore for AIIMS institutions across the country, including AIIMS Bibinagar in Telangana.
However, allocations for externally aided projects at IIT Hyderabad were limited, and no separate funds were earmarked for the proposed Tribal University in the State.
Increased funding for Singareni
The Centre has enhanced budgetary support to Singareni Collieries Company Limited, allocating Rs 2,500 crore in the current Budget.
Other key allocations include:
Atomic Minerals Directorate of Exploration and Research, Hyderabad: Rs 405.97 crore
Seven NIPER institutions (including Hyderabad): Rs 215 crore (reduced from revised estimates)
Centre for Development of Advanced Computing (C-DAC), including Hyderabad centres: Rs 280 crore
National Fisheries Development Board, Hyderabad: Rs 14.55 crore
Cuts and Omissions
Allocations for police education, training, and research, including the Hyderabad National Police Academy, were reduced to Rs 908.78 crore.
Notably, the National Institute of Rural Development and Panchayati Raj (NIRDPR), Hyderabad, which saw a steady decline in funding over the past three years, did not receive any allocation in the current Budget.
Support for Autonomous Research Institutions
The Centre has earmarked:
Rs 1,643.87 crore for 25 autonomous research institutions, including ARCI, Hyderabad
Rs 1,002.13 crore for institutions such as the National Institute of Animal Biotechnology
Rs 1,745.52 crore for heavy water plants, including the facility at Manuguru
Overall, while Telangana has gained from higher tax devolution and major rail connectivity proposals, concerns remain over reduced or nil allocations to several key institutions based in the State.
