Union Budget undermines cooperative federalism: Telangana Minister Sridhar Babu
Feb 01, 2026
Hyderabad (Telangana) [India], February 1 : Telangana Minister Duddilla Sridhar Babu on Sunday criticised the Union Budget, stating that it ran contrary to the spirit of the Constitution and weakened the principles of cooperative federalism.
Referring to Article 1 of the Constitution, which defines India as a "Union of States", the Minister said national development was inseparable from the financial strength and autonomy of the States. However, he alleged that this constitutional principle had been ignored in the present Budget.
In a statement, Sridhar Babu expressed concern that Telangana, which contributes over 5 per cent to the national Gross Domestic Product (GDP), was not mentioned even once in the Budget speech. He described the omission as deeply disappointing and reflective of a discriminatory approach towards the State.
The Minister remarked that the Union Government's slogan of "Sabka Saath, Sabka Vikas" appeared inconsistent with its treatment of Telangana. While advocating inclusive development in principle, the Centre had displayed political bias in financial allocations, he alleged.
Stating that a Union Budget must be guided by economic rationale rather than political considerations, Sridhar Babu said progressive States such as Telangana had suffered serious injustice. "Although the State was expected to receive Rs 22,782 crore as Central grants in the current financial year, only about Rs 4,000 crore had been released even after ten months, he pointed out.'
The Constitution envisages an equitable distribution of resources between the Union and the States, the Minister said, adding that the present Budget weakened the framework of cooperative federalism.
He also expressed disappointment over the Centre's failure to allocate funds for key infrastructure projects sought by the State, including the Regional Ring Road, Metro Rail Phase-II, the Godavari-Musi river linkage, improved rail connectivity, new airports, and pending commitments under the State Reorganisation Act.
Questioning the exclusion of Telangana from initiatives such as high-speed rail corridors, the Minister urged BJP MPs from Telangana to clarify their position to the public.
He urged the Union Government to set aside partisan considerations and uphold the constitutional principles of equality, fairness, and federal balance.