Andhra Pradesh Unveils Rs 3.32 Lakh Crore Budget, CM Credits Centre’s Support For Development

Last Updated:February 14, 2026, 12:45 IST

Andhra Pradesh presented a Rs 3.32 lakh crore Budget for 2026-27, focusing on balancing welfare spending with infrastructure and development investments.

The Andhra Pradesh government on Saturday presented a Budget of Rs 3,32,205 crore for the financial year 2026-27, positioning it as a roadmap aimed at balancing welfare commitments with long-term economic growth and infrastructure development.

Finance Minister Payyavula Keshav tabled the Budget in the State Assembly, marking the third consecutive time he has presented the state’s financial statement, including one Vote-on-Account and two full-fledged budgets.

In the budget presented, the revenue expenditure has been estimated at Rs 2,56,143 crore, while capital expenditure is projected at Rs 53,915 crore. The revenue deficit is pegged at Rs 22,002 crore, and the fiscal deficit at Rs 75,868 crore.

According to news agency PTI, the budget seeks to balance welfare and development spending, with significant allocations across social and infrastructure sectors.

The government allocated Rs 32,308 crore for School Education and Rs 19,306 crore for the Health, Medical and Family Welfare Department.

Nearly Rs 23,000 crore has been earmarked for the Panchayati Raj and Rural Development Department, while Rs 51,021 crore has been proposed for the BC component.

In his Budget speech, Keshav said rebuilding Andhra Pradesh required sustained effort following challenges faced since its formation.

He stated that a short period was insufficient to rebuild a state affected first by the 2014 bifurcation and later by governance and financial difficulties between 2019 and 2024.

He described the Budget as “not just an account of figures, but as a roadmap aimed at fulfilling the dreams of five crore people."

AGRICULTURE AND IRRIGATION PRIORITY

The budget places strong emphasis on agriculture and water security.

Allocations include Rs 9,906 crore for major irrigation projects and Rs 6,105 crore for the Polavaram project.

The Annadata Sukhibhav scheme received Rs 6,600 crore.

Additional provisions include Rs 1,927 crore under the Rashtriya Krishi Vikas Yojana, Rs 500 crore for the Price Stabilisation Fund, Rs 260 crore for fisheries services, Rs 250 crore for crop insurance and Rs 190 crore under the PM Krishi Sinchai Yojana.

CHIEF MINISTER CREDITS CENTRE’S SUPPORT

In posts shared on X, the Chief Minister Chandrababu Naidu’s Office expressed gratitude to the Union government, stating, “While financial challenges remain, the government continues to move forward with strong resolve and responsible fiscal management."

The post added that “continued support from Hon’ble PM Sri Narendra Modi garu and Hon’ble Union Finance Minister Smt. Nirmala Sitharaman garu has been instrumental in advancing key projects such as Polavaram, Amaravati capital development, and the Rayalaseema Global Horticulture Project."

UNION BUDGET OPPORTUNITIES AND FUTURE PLANS

The Chief Minister’s Office also highlighted opportunities arising from the Union Budget, noting that under the Purvodaya initiative, Andhra Pradesh would leverage development prospects linked to the East Coast Industrial Corridor, tourism destinations and deployment of e-buses, while advancing the Rayalaseema Global Horticulture Hub.

He further said the state aims to maximise benefits from national initiatives such as Rare Earth Corridors, data centres, regional medical hubs, seaplane manufacturing, container manufacturing and the establishment of girls’ hostels in every district.

Referring to new competitive project models, the Chief Minister’s Office mentioned, “The Union Budget 2026–27 has opened new opportunities for Andhra Pradesh through PPP and Challenge mode projects, promoting efficiency, innovation and competitive execution in public sector development."

It added that the state is prepared to compete for projects, including chemical parks, mega textile parks, city economic regions and university townships, with the Visakhapatnam Economic Region plan already prepared.

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