Hyderabad: The dreams of Telangana and Andhra Pradesh of getting adequate funds and incentives in the Union Budget were shattered on Saturday as none of the major promises made in the AP Reorganisation Act found mention in the Budget.

The Union budget hasn’t given TS much to cheer.

The state government had expected funds for the Water Grid project, Mission Kakatiya, Pranahita Chevella project, textile clusters in Mahabubnagar and Sircilla and special tax incentives, but it was let down.

Though Union finance minister Arun Jaitley stated that the Centre would fulfil all promises made to TS and AP in the AP Reorganisation Act, 2014, the same was not reflected in the Budget.



The only solace for TS was allotment of the Rs 75 crore to the Horticulture University, Rs 1 crore to the Tribal University and Rs 55 crore to IIT-Hyderabad.

“Except for stating that more powers would be given to states in the utilisation of Central funds and that there would be more devolution of taxes to states, there is nothing to rejoice,” said S. Venugopala Chary, special representative of the TS government in New Delhi.

Mr Chary said though TS was eligible for special funds, it had not been addressed.

An unsatisfied CM held an emergency meeting with finance department officials to discuss what the state could gain and the issues that needed to be taken up with the Centre for “reconsideration”.