Centre Denies Pending Fund Releases for Telangana’s Backward Regions, Says ₹2,700 Crore Fully Released
February 3, 2026
The Central Government has dismissed claims of pending funds for Telangana's backward region development. Union Minister of State for Finance, Pankaj Chaudhary, said all allocated funds have been released. MPs Chamala Kiran Kumar Reddy and Eatala Rajender raised questions on delays of ₹1,800 crore due over four years, including 2019-20, 2021-22, and 2023-24. The Minister clarified the government decided to release ₹2,700 crore in six instalments of ₹450 crore each under Section 94(2) of the Andhra Pradesh Reorganisation Act, 2014. He added the full amount had been disbursed. Section 94(2) mandates the Centre to support backward areas in Telangana and Andhra Pradesh with fiscal aids to build social and physical infrastructure. The released ₹2,700 crore, divided as ₹50 crore annually for each of the nine former districts in Telangana, targeted development in these backward zones. Despite repeated requests from successive Bharat Rashtra Samithi (BRS) and Congress-led state governments for more funds, the Centre refused any additional release. This update comes amid ongoing debates on the Centre's support for Telangana's regional growth needs.
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Tags:
Telangana
Centre
Ap Reorganisation Act
Backward Regions
Funds release
Pankaj Chaudhary
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