On 28 February 2025, the Andhra Pradesh government revealed its budget for the fiscal year 2025-26, setting a historic milestone with an allocation of Rs 3.22 lakh crore. This ambitious financial plan, presented by Finance Minister Payyavula Keshav, reflects a strategic focus on balancing welfare programs with economic growth initiatives. In this article, we explore the key highlights and priorities of Andhra Pradesh’s roadmap for the upcoming fiscal year.
Andhra Pradesh Financials
The budget for 2025-26 is structured around a total outlay of Rs 3,22,359 crore, with revenue expenditure estimated at Rs 2,51,162 crore and capital expenditure at Rs 40,635 crore.
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 the Gross State Domestic Product (GSDP), respectively.
This fiscal framework reflects the government’s efforts to balance welfare commitments with developmental priorities amidst fiscal constraints.
Sectoral Allocations
Agriculture and Allied Sectors
The budget allocates Rs 48,341 crore to the agriculture sector, emphasizing sustainable practices and farmer support through initiatives like the Annadata Sukhibhava scheme, which receives Rs 6,300 crore. This allocation underscores the sector’s importance to the state’s economy and rural livelihoods.
Education
The education sector receives significant funding, with Rs 34,311 crore allocated for overall educational development. Specifically, Rs 31,806 crore is earmarked for school education, reflecting the government’s commitment to improving educational infrastructure and outcomes.
Healthcare
The healthcare sector is allocated Rs 19,264 crore, focusing on strengthening primary healthcare facilities and enhancing tertiary care services. This investment aims to improve health outcomes and reduce healthcare disparities across the state.
Welfare Initiatives
The budget prioritises social welfare, allocating substantial funds for key schemes:
– Thalliki Vandanam: Rs 9,407 crore, providing financial support to mothers of school-going children
-Annadata Sukhibhava: Rs 6,300 crore, supporting farmers through financial assistance
-Backward Classes Welfare: Rs 47,456 crore, addressing historical disadvantages through targeted interventions
-Scheduled Castes Welfare: Rs 20,281 crore, and
– Scheduled Tribes Welfare: Rs 8,159 crore, focusing on inclusive development
Developmental Initiatives
Infrastructure Development
The budget allocates Rs 8,785 crore for road development and Rs 18,847 crore for Panchayati Raj initiatives, emphasising rural infrastructure and local governance.
In addition to that, Rs 13,600 crore is allocated to the Energy Department, highlighting the government’s focus on power sector reforms and renewable energy.
Economic and Technological Advancements
A significant allocation of Rs 55,730 crore is made for economic and technological developments, including industrial corridors and MSME support. This investment aims to foster economic growth, enhance competitiveness, and create employment opportunities.
The Andhra Pradesh Budget for 2025-26 presents a comprehensive fiscal strategy that balances welfare imperatives with developmental priorities. The substantial allocations for agriculture, education, healthcare, and welfare schemes reflect the government’s commitment to inclusive growth and social equity.
As the state navigates fiscal constraints and developmental challenges, this budget establishes a framework for achieving the long-term vision of Swarna Andhra 2047, emphasizing economic resilience, social justice, and infrastructural innovation.
Also read: Visakhapatnam in 2047: A Glimpse into the Future.
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