Andhra Pradesh Bets Big: ₹3.32 Lakh Crore Budget Targets Welfare and Rural Growth

The Andhra Pradesh government on Saturday presented a ₹3.32 lakh crore budget for the financial year 2026-27 in the state assembly, with a strong emphasis on welfare measures and rural development to balance social commitments with long-term infrastructure growth.

Finance Minister Payyavula Keshav tabled the budget, outlining a total outlay of ₹3,32,205 crore. This includes an estimated revenue expenditure of ₹2.56 lakh crore and capital expenditure of nearly ₹54,000 crore (with some reports specifying ₹53,915 crore or ₹48,697 crore). The fiscal deficit is projected at approximately ₹75,868 crore (around 3.84% of GSDP), while the revenue deficit stands at about ₹22,002 crore (1.11% of GSDP). The presentation highlighted the government's vision to rebuild the state, support people's aspirations, and drive economic recovery following previous challenges.

Welfare sectors received substantial allocations, with the Backward Classes (BC) component earmarked for ₹51,021 crore in some breakdowns, alongside significant funding for school education at ₹32,308 crore and health, medical, and family welfare at ₹19,306 crore. Social welfare and economically weaker sections (EWS) also saw dedicated provisions, reflecting priorities in education, healthcare, and inclusive growth. Additional initiatives include support for schemes like Thalliki Vandanam and housing programs in rural and urban areas.

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Rural development emerged as a key focus, with the Panchayati Raj and Rural Development Department—overseen by Deputy Chief Minister Pawan Kalyan—receiving nearly ₹23,000 crore (₹22,942 crore in detailed figures). This funding supports rural infrastructure, including strengthening over 4,000 km of roads, water security through Jal Jeevan Mission (₹4,000 crore), Swachh Bharat Mission (₹1,037 crore), and employment-oriented programs like VB G-RAM G (₹8.3 crore or similar allocations in related schemes). Agriculture and allied sectors were allocated around ₹11,745 crore to ₹13,598 crore, underscoring efforts to boost farmer welfare and rural economies.

The budget also addresses broader development through allocations for water resources (₹18,224 crore), municipal administration and urban development (₹14,539 crore), and energy (₹13,934 crore). Chief Minister N. Chandrababu Naidu credited central government support for enabling these investments, positioning the budget as a roadmap for sustainable progress, skill development, and regional hubs like Amaravati and Tirupati.

Overall, the 2026-27 budget aims to foster inclusive growth by prioritizing welfare for vulnerable sections while investing in rural infrastructure and essential services, setting the stage for Andhra Pradesh's economic and social advancement in the coming year.

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