Union Budget 2026: What’s Good And Bad For AP and Telangana?

The central government presented the union budget for 2026 and let us have a look at the kind of all applications that have been made for the Telugu states of Andhra Pradesh and Telangana. Let us have a look at the good and bad that happened to the two Telugu states here.

For Andhra Pradesh, the positives come mainly from infrastructure and industrial focus. The budget’s push for national industrial corridors and port led development is expected to support the state’s long coastline and logistics potential.

Improved rail and road connectivity under central schemes may help link major cities and industrial zones. The focus on manufacturing, clean energy, tourism and semiconductor related ecosystems could attract private investment and generate employment, especially in emerging regions of the state.

However, on the downside, Andhra Pradesh did not receive clear and dedicated allocations for long pending commitments such as the development of Amaravati as the capital. Funding expectations for major irrigation and infrastructure projects also fell short, raising concerns about slower execution and financial stress on the state government.

Telangana gains from the budget’s continued emphasis on technology, innovation and manufacturing. Hyderabad is likely to benefit indirectly from support to startups, electronics, artificial intelligence and semiconductor industries. National infrastructure programs could also strengthen regional connectivity and urban growth.

At the same time, Telangana leaders have expressed disappointment over the absence of direct budgetary support for major projects like metro expansion, regional ring road and river rejuvenation works. Overall, while both states gain from broader national priorities, state specific expectations remain partly unmet.