Libraries are very essential in academic institutions to provide timely needy information to faculty, research scholars and student community to fulfill their academic needs. In this scenario, library resources and services can play an important role. To provide academic needs, building up library collection means, acquisition, selection, evaluation and preservation of resources according to user’s requirement. Collection Development policies for Books and Non-Book Materials shows that a large majority 70.59% (12) of respondents said their respective libraries has Collection Development policies for Books and Non-Book Materials, 29.41% (5) respondents said their respective library don’t have Collection Development policies for Books and Non-Book Materials. Collection development of SR & BGNR Government Arts & Science College, Khammam shows that the collection development of Books, Journals/Magazines has increased (2012-13: 1137 & 2013-14: 1283) by 12.84% for the year 2012-13 2013-14. The year 2013-14 to 2014-15 collection development shows a downward trend -41.699%. The year 2014-15 to 2015-16 collection development shows an upward trend -12.03%. The year 2015-16 to 2016-17 collection development shows upward trend 82.93%. Out of 5 years, only 2013-14 to 2014-15 shows downward trend remaining year’s shows upward trends it is a good sign. This research paper highlights that the importance and need of collection development in NAAC accredited government degree college libraries, CD is very essential to provide needy library resources and services to users of NAAC Accredited Govt. Degree College libraries, affiliated to the Kakathiya University of Telangana State. In the end, the establishment of digital libraries, create one network or consortium among the Government Degree College libraries to save any money in this financial crunch in Telangana State.