Telangana Budget 2026-27: Allocation for irrigation department slashed by ₹740 crore

HYDERABAD

The Irrigation Department may find it difficult to match the expectations of the government and its objectives of completing the pending and ongoing projects on a priority basis in 2026-27 with the budget allocation to the sector getting pruned by ₹740 crore to ₹22,615 crore against ₹23,355 crore last year.

In his budget speech, Deputy Chief Minister M. Bhatti Vikramarka listed out many pending/ongoing projects such as Palamuru-Rangareddy, Kalwakurthy, Nettempadu, Bheema, Dindi, Devadula, Sita Rama, Chinna Kaleshwaram and Makthal-Narayanpet-Kodangal Lift Irrigation Schemes, Srisailam Left Bank Canal Project, Udayasamudram, Gouravelli Project and about another dozen LI and other schemes. He also announced taking up Pranahitha-Chevella project.

However, of the ₹22,615 crore allocation for 2026-27 only ₹12,836 crore (budget at a glance document) is meant for capital works and the rest for establishment needs. The establishment expenditure includes the salaries, operation and maintenance costs of irrigation projects and lift irrigation schemes such as energy bills for lifting water and others.

As per the sector-wise outlays given in the ‘pragati paddu’ document of the budget, the outlay for capital works is shown as ₹11,871 crore including the assistance under Accelerated Irrigation Benefit Programme-AIBP (₹1,121 crore), centrally sponsored schemes (₹228 crore) and Rural Infrastructure Development Fund-RIDF from NABARD (₹5.4 crore) expected from the Central Government. The outlay for capital works in 2025-26 was ₹11,800 crore.

The outlay includes ₹8,983 crore for major irrigation, ₹510 crore for medium irrigation and ₹2,080 crore for minor irrigation projects and the remaining for groundwater, flood control and drainage and command area development needs.

One of the few takeaways in the allocation for the irrigation sector for the coming fiscal is the government’s plans to take up de-siltation of major projects/reservoirs as their water holding/storage capacity has come down over the year due to accumulation of silt during the flood period. It has plans to desilt Kaddam, Lower Manair and Mid Manair projects on revenue generating model, while it would be taken up directly by the department in projects such as Sriramsagar, Jurala, Nagarjunasagar and Musi.

Similarly, another major economic sector agriculture has received ₹1,260 crore less - ₹23,179 crore for 2026-27 against ₹24,439 allocation made in 2025-26. The allocation for coming fiscal includes ₹18,000 crore for Rythu Bharosa, ₹3,500 crore for bonus to agricultural produce and ₹1,886 crore for crop insurance.

Info-box:

Year-wise Budgetary Allocation

for Irrigation Sector (₹in cr.)

Year Amount

2026-27 22,615

2025-26RE 23,355

2024-25* 23,492

2023-24* 29,766

2022-23* 19,349

2021-22* 15,771

2020-21* 11,358

2019-20* 10,521

2018-19* 9,507

* Accounts; RE Revised Estimates

(Budget allocations are in addition to spending from out of Corporation borrowings)