The Telangana government will tread cautiously in planning its next budget after the 'disappointing' Union Budget presented on Sunday. A senior Finance official said, "Except for railway corridor, nothing specific has been announced for the State." Key projects like Regional Ring Road, Metro Phase-II, and Musi rejuvenation may miss Central funding. Telangana may rely on smart fiscal moves like swapping high-interest loans for low-interest ones. This swap allowed the State to raise ₹71,400 crore in 2025-26, above the initial ₹54,009 crore cap set by the Union Finance Ministry. However, plans to raise more loans are limited due to the 3% fiscal deficit cap. The Central Government has maintained its fiscal deficit limit at 4.5% for next year but refused States' requests to raise their limits. Finance officials said the government must cautiously explore ways to meet spending without breaking the Fiscal Responsibility and Budget Management (FRBM) Act's rules. The Union Budget offers little direct help for Telangana’s growth plans, making tight financial management the need of the hour.