Amaravati: Andhra Pradesh Finance Minister Payyavula Keshav on Friday presented a comprehensive Budget of Rs 3,22,359 crore for the financial year 2025-26, marking a 9.48% increase from the previous year’s outlay of Rs 2,94,427 crore.
The budget estimates include Rs 2,51,162 crore for revenue expenditure and Rs 40,635 crore for capital expenditure. The projected revenue deficit stands at Rs 33,185 crore, while the fiscal deficit is estimated at Rs 79,926 crore, accounting for 1.82% and 4.38% of GSDP, respectively.
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This is the second full-fledged budget presented by the TDP-led NDA government, which came to power in June 2024. Previously, in November 2024, Keshav had presented a Rs 2.94 lakh crore interim budget for the financial year 2024-25.
Sector-Wise Budget Allocations for 2025-26
1. Agriculture and Allied Sectors
- A separate agriculture budget of Rs 48,000 crore was presented by Agriculture Minister K. Atchannaidu.
- Allocation for agriculture and allied sectors: Rs 13,487 crore (up from Rs 11,855 crore in 2024-25).
- Annadata Sukhibhava Scheme (support for farmers): Rs 6,300 crore.
2. Education and Skill Development
- School education: Rs 31,805 crore (up from Rs 29,909 crore in the previous year).
- Higher education: Rs 2,506 crore.
- Skill development: Rs 1,228 crore.
- Thalli Ki Vandanam Scheme (Rs 15,000 annual aid per school-going child, credited to mother’s account): Rs 9,403 crore.
3. Welfare Initiatives
- NTR Bharosa Pension Scheme: Rs 27,518 crore.
- Scheduled Castes (SC) Welfare: Rs 20,281 crore (up from Rs 18,497 crore in 2024-25).
- Scheduled Tribes (ST) Welfare: Rs 8,159 crore (up from Rs 7,557 crore in the previous budget).
- Backward Classes (BC) Welfare: Rs 47,456 crore (up from Rs 39,007 crore in 2024-25).
- Minorities Welfare: Rs 5,434 crore (up from Rs 4,376 crore).
- Women & Child Welfare: Rs 4,332 crore (slight increase from Rs 4,285 crore).
4. Health and Infrastructure
- Health sector: Rs 19,264 crore.
- Panchayat Raj & Rural Development: Rs 18,847 crore.
- Municipal Administration & Urban Development: Rs 13,862 crore.
- Housing: Rs 6,318 crore.
- Roads & Buildings: Rs 8,785 crore.
5. Major Projects and Missions
- Water Resources Development: Rs 18,019 crore.
- Jal Jeevan Mission (clean water supply): Rs 2,800 crore.
- Polavaram Irrigation Project: Rs 6,705 crore.
- Industry & Commerce: Rs 3,156 crore.
- Energy Sector: Rs 13,600 crore.
6. Other Notable Allocations
- Tourism, Youth Affairs & Culture: Rs 469 crore.
- Welfare of differently-abled persons: Increased allocation (amount not specified).
Focus on Welfare & Infrastructure Development
The government emphasized social welfare, agriculture, and infrastructure in the budget, aiming to fulfill election promises and support economic growth. The finance minister stated that the budget is designed to accelerate progress while maintaining fiscal discipline.
The increase in allocations for education, agriculture, and social welfare schemes reflects the state’s focus on inclusive development. Major irrigation and infrastructure projects, such as Polavaram, have received substantial allocations, signaling the government’s commitment to completing key projects.
Fiscal Deficit and Economic Outlook
With a fiscal deficit of Rs 79,926 crore (4.38% of GSDP), the government is expected to focus on revenue generation through economic reforms and investments. The state’s fiscal roadmap includes enhancing revenue collections and leveraging central assistance for key schemes.