Rs 3.32 lakh crore budget for AP

Highlights of the Budget:

1. Total Budget: Rs 3,32,205 crore
2. Revenue Expenditure: Rs 2,56,143 crore
3. Capital Expenditure: Rs 53,915 crore
4. Revenue Deficit: Rs 22,002 crore
5. Fiscal Deficit: Rs 75,868 crore

Major Allocations

1. Amaravati: Rs 6,000 crore
2. Power Sector: Rs 13,934 crore
3. Roads, Ports & Airports: Rs 13,546 crore
4. Industries: Rs 3,161 crore
5. School Education Rs 32,308 crore
6. Health and Medical Department: Rs 19,306 crore
7. Polavaram Project: Rs 6,105 crore
8. Price Stabilisation Fund: Rs 5,000 crore
9. Thalliki Vandanam Scheme: Rs 9,668 crore
10. Women and Child Welfare: Rs 4,581 crore
11. Dokka Seethamma Midday Meal Scheme: Rs 2,161 crore
12. Skill Development: Rs 1,232 crore
13. Agriculture Department: Rs 11,118 crore
14. EWS Welfare: Rs 10,669 crore
15. Sarvepalli Radhakrishnan Vidyarthi Mitra: Rs 654 crore
16. Youth and Sports: Rs 438 crore
17. Scholarships: Rs 3,836 crore
18. Samagra Shiksha: Rs 2,946 crore
19. School Education: Rs 32,308 crore
20. Health and Medical Department: Rs 19,306 crore
21. Mana Badi–Mana Bhavishyathu Scheme: Rs 1,500 crore
22. PM Schools for Rising India: Rs 707 crore

Andhra Pradesh Finance Minister Payyavula Keshav on Saturday presented the State Budget for the financial year 2026-27 in the Legislative Assembly, marking his third consecutive budget presentation. The Minister earlier introduced one Vote-on-Account budget and two full-fledged budgets before placing the latest financial statement before the House.

Beginning his speech, Keshav said a budget, in the government’s view, is not merely a statement of accounts but a policy instrument aimed at accelerating both development and welfare “like a twin-engine cart,” reflecting the administration’s commitment to balancing growth with social security.

The State proposed a total outlay of Rs 3,32,205 crore for 2026-27. Revenue expenditure has been estimated at Rs 2,56,143 crore, while capital expenditure stands at Rs 53,915 crore. The revenue deficit is projected at Rs 22,002 crore and the fiscal deficit at Rs 75,868 crore.

The government highlighted a significant increase in capital expenditure compared to the previous year. Capital spending has been raised from Rs 39,497.56 crore in the 2025-26 revised estimates to Rs 53,915.38 crore in the current budget, an increase of Rs 14,417.82 crore, aimed at asset creation and infrastructure expansion.

The budget continues to prioritise welfare programmes with substantial allocations across social sectors. Key provisions include Rs 27,719 crore for the NTR Bharosa pension scheme, Rs 2,601 crore for Deepam 2.0, Rs 9,668 crore for the Thalliki Vandanam education support programme, and Rs 4,581 crore for women and child welfare initiatives.

Financial assistance schemes for various communities received Rs 2,320 crore, while Rs 1,420 crore has been earmarked for Stree Shakti initiatives. Subsidies and free electricity support for weaker sections were allocated Rs 600 crore, and Rs 450 crore was set aside for welfare measures benefiting auto drivers.

In the education sector, allocations include Rs 3,836 crore for scholarships, Rs 2,946 crore for Samagra Shiksha, Rs 2,566 crore for higher education, Rs 1,500 crore under “Mana Badi–Mana Bhavishyat,” and Rs 1,232 crore for skill development programmes. The Dokka Seethamma mid-day meal scheme received Rs 2,161 crore.

Healthcare and housing also received significant funding, including Rs 4,000 crore for NTR Vaidya Seva and Rs 5,451 crore for housing programmes. Additional allocations include Rs 4,000 crore for Jal Jeevan Mission, Rs 1,037 crore for Swachh Bharat Mission, and Rs 838 crore under Ayushman Bharat.

According to the budget, 38% of State revenue will come from taxes, 3% from non-tax sources, 30% through market borrowings, 19% from the State’s share in central taxes, and 10% through grants-in-aid. On the expenditure side, welfare accounts for 17%, education 11%, rural development 7%, health and family welfare 6%, water resources 6%, and interest payments and loan servicing 18%.

The Finance Minister emphasised measures taken to stabilise the State’s finances. He said the government renegotiated high-interest loans inherited from the previous regime, reducing interest rates from as high as 12.3% to around 9%.  As part of long-term resource generation, the government proposed the creation of an AP Wealth Fund with a Rs 100 crore seed corpus. The fund will invite private investors and invest in projects across the country to generate sustainable revenue for the State exchequer.

The Finance Minister said the budget reflects efforts to restore fiscal discipline while sustaining welfare commitments, positioning Andhra Pradesh on a path of growth, investment and inclusive development.

Rs 1876.23 crores for rural poverty alleviation schemes: Minister

The Andhra Pradesh government has allocated Rs 1,876.23 crore for the implementation of rural poverty alleviation programs in the 2026-27 financial year, according to MSME and Rural Poverty Alleviation Minister Kondapalli Srinivas. This represents an increase of Rs 143 crore compared to the previous fiscal year, reflecting the state government's strong commitment to empowering women in self-help groups (SHGs) and advancing rural livelihoods. 

The minister highlighted that Rs 464.99 crore has been earmarked for salaries and allowances of government staff working in rural poverty alleviation institutions  as well as the maintenance of SERP and DRDA (District Rural Development Agency) offices. Under the Deen Dayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), the budget provides Rs 818 crore, while Rs 72 crore is allocated for the Startup Village Enterprise Program, Rs 30 crore for the Mahila Kisan Sashaktikaran Programme (empowering women farmers) and Rs 15 crore for Rural Self-Employment Training Institutes. 

Minister Kondapalli Srinivas further announced that, based on actual central allocations under DAY-NRLM, Chief Minister Nara Chandrababu Naidu has directed efforts to scale up funding by up to an additional Rs 1,200 crore. As part of the Chief Minister's ambitious "One Family – One Entrepreneur" initiative, the government aims to train and nurture approximately 500,000 women as entrepreneurs while strengthening Farmer Producer Organizations (FPOs). 

AP budget progressive: PVN Madhav

Bharatiya Janata Party (BJP) State President P.V.N. Madhav on Sunday described the Andhra Pradesh Budget for the 2026-27 financial year as a “progressive and forward-looking” document and directed party spokespersons to effectively communicate its key aspects to the public. Addressing an audio conference with BJP state spokespersons and media panelists, Madhav provided guidance on the party’s future communication strategy and outlined the approach to be adopted while presenting the budget’s highlights to people across the state.

He said the budget, presented by Finance Minister Payyavula Keshav, lays down a clear roadmap for Andhra Pradesh’s development and has been structured around three core principles,  wealth creation, development, and welfare. Madhav emphasized that party representatives should explain how both the Union and State budgets complement each other in driving economic growth and public welfare initiatives.

Calling the budget ambitious, the BJP leader noted that the government had proposed an expenditure outlay of Rs 3.32 lakh crore, targeting an economic growth rate of 11.25 percent. He termed the scale of the budget unprecedented and said it reflected the government’s confidence in accelerating the state’s economic expansion. Madhav also highlighted fiscal discipline as a key feature, pointing out that the revenue deficit had been limited to 1.86 percent, which he described as evidence of responsible financial management by the state government.

The BJP leader urged party spokespersons and media representatives to actively engage with the public and ensure that the developmental and economic aspects of the budget are clearly conveyed, strengthening awareness about the government’s long-term growth agenda.

Bundle of lies: YSRCP

YSRCP leader B Rajendranath on Saturday termed Andhra Pradesh's budget for 2026-27 as a "bundle of lies". Addressing a press conference, the former finance minister alleged that tall claims and fudging of figures was blatant in the budget, claiming that its format has been changed to the extent of covering up "lies and not revealing" comparative financial discipline by providing the mandatory 10-year data.

The Andhra Pradesh government presented a budget of over Rs 3.32 lakh crore for 2026-27, and said that the state was financially "yet to come out of the woods," following the "mess" created by the previous YSRCP regime. "A bundle of lies (budget) which tries to hide more than what it reveals and lacks in sum and substance," Rajendranath said, adding that it speaks high on growth rate.

The corresponding rise in revenue is very low, which shows that the figures are "cooked up", he alleged. Citing Jal Jeevan Mission, he said the Centre has spent Rs 8,500 crore nationwide while the coalition government claims that it has spent Rs 10,000 crore. Further, he noted that the revenue figure of the previous year and the revised estimates leave a yawning gap, wondering how the government will fill it in the last quarter. Not a single poll promise has been fulfilled while the loan amount keeps mounting and has crossed Rs 3 lakh crore, which does not reflect in the budget in any form, he claimed.

"All sections of people feel cheated and they cannot find answers in the budget. Farmers, students, women, the unemployed and their problems were not addressed in the budget in any corner," he said. Comparing the TDP-led NDA government with their previous regime, Rajendranath asserted that the YSRCP government had done better despite the Covid pandemic.