Andhra Pradesh Government Unveils Rs 3.22 Lakh Crore Budget for 2025-26 Fiscal Year

Andhra Pradesh Presents Comprehensive Budget for 2025-26

The Andhra Pradesh government, on February 28, 2025, presented its budget for the financial year 2025-26, proposing an outlay of Rs 3.22 lakh crore. Finance Minister Mr. Payyavula Keshav tabled the budget in the state Assembly, marking the first full-fledged financial plan by the newly formed coalition government. The budget aims to address economic stability, welfare initiatives, and infrastructure development, with a strong focus on social welfare and key sectors.

Key Financial Outlays and Projections

The budget outlines an estimated revenue expenditure of Rs 2.51 lakh crore and a capital expenditure exceeding Rs 40,000 crore, specifically reported as Rs 40,635 crore. The state projects a Gross State Domestic Product (GSDP) of Rs 18.3 lakh crore for 2025-26, indicating a 14% growth over the revised estimates of the previous fiscal year.

Despite the significant outlay, the budget forecasts a revenue deficit of approximately Rs 33,185 crore, which is 1.82% of the GSDP. The fiscal deficit is estimated at around Rs 79,926 crore, representing 4.38% of the GSDP. Total receipts, excluding borrowings, are estimated to be Rs 2,18,002 crore, a 24% increase compared to the revised estimate of 2024-25.

Emphasis on Welfare and Sectoral Allocations

A significant portion of the budget is dedicated to welfare schemes and critical sectors. The government has placed a strong emphasis on fulfilling its 'Super Six' election promises. Key allocations and policy highlights include:

• Talliki Vandanam scheme: Financial assistance of Rs 15,000 annually will be provided to every school-going child from Class 1 to Class 12, covering both government and private schools.
• Farmers' Aid: Annual financial support of Rs 20,000 per farmer will continue under the Annadata Sukhibhava scheme.
• Fishermen Welfare: Financial relief for fishermen during the annual fishing ban period has been doubled from Rs 10,000 to Rs 20,000.
• Social Welfare: Significant allocations include Rs 20,281 crore for Scheduled Castes (SC), Rs 8,159 crore for Scheduled Tribes (ST), Rs 47,456 crore for Backward Classes (BC), and Rs 5,434 crore for the welfare of minority communities.
• Education: The school education department received an allocation of Rs 31,805 crore.
• Health: The Health, Medical and Family Welfare Department has been allocated Rs 19,264 crore.
• Rural Development: The Panchayati Raj and Rural Development Department, overseen by Deputy Chief Minister Pawan Kalyan, received Rs 18,847 crore.
• Urban Development: The Municipal Administration and Urban Development Department was allocated Rs 13,862 crore.
• Entrepreneurship: An innovation hub is planned for Amaravati to mentor start-ups, with links to five zonal centers.

Finance Minister Keshav stated that the government is presenting the budget 'in the backdrop of the financial destruction caused by the previous regime,' highlighting the complex task of managing the state's finances.