Andhra Pradesh unveils ₹3.2 lakh crore Budget.
The Andhra Pradesh government has unveiled its budget for the financial year 2025-26, allocating significant funds for key welfare and development initiatives. One of the major highlights is the allocation of ₹9,407 crore for the Thalliki Vandanam scheme, which aims to support mothers and newborns by providing financial assistance and healthcare benefits.
In addition to this, the government has proposed ₹19,264 crore for the Health, Medical & Family Welfare Department, emphasizing its commitment to strengthening the state’s healthcare infrastructure. The funds will be utilized to improve medical facilities, enhance public health programs, and ensure access to quality healthcare services for all citizens.
The budget also focuses on various welfare programs, infrastructure development, and social schemes aimed at benefiting the weaker sections of society. Sectors such as education, agriculture, and employment generation have received considerable attention, ensuring a balanced approach toward economic growth and social upliftment.
With this budget, the Andhra Pradesh government aims to drive inclusive development, enhance public welfare, and boost the overall economy of the state. Further details on sector-wise allocations and specific policy measures will be revealed as the budget is debated and implemented in the coming months.
This budget aims to drive inclusive development, strengthen public welfare programs, and boost the state’s economy. Of the total outlay, revenue expenditure is estimated at ₹2,51,162 crore, while capital expenditure stands at ₹40,635 crore.
Fiscal Indicators and Deficit Projections
Finance Minister Payyavula Keshav, while presenting the Budget in the State Assembly, outlined the fiscal projections for the coming year. The estimated revenue deficit is around ₹33,185 crore, which is 1.82% of the Gross State Domestic Product (GSDP). Meanwhile, the fiscal deficit is pegged at ₹79,926 crore, accounting for 4.38% of the GSDP. These figures highlight the government’s continued investment in welfare and development projects while maintaining a strategic financial roadmap.
Key Budgetary Allocations
The 2025-26 budget places a strong emphasis on welfare initiatives and sectoral growth. Some of the major allocations include:
- Backward Classes (BC) Welfare: ₹47,456 crore has been earmarked for the welfare of Backward Classes, reinforcing the government’s commitment to uplift marginalized communities.
- School Education: A substantial ₹31,805 crore has been allocated to school education, ensuring better infrastructure, quality teaching, and student welfare programs.
- Health, Medical, and Family Welfare: ₹19,264 crore has been designated for this sector, underlining the government’s priority in strengthening healthcare services across the state.
- Talliki Vandanam Welfare Scheme: ₹9,407 crore has been allocated for this scheme, which provides financial assistance to mothers and newborns, improving maternal and child health outcomes.
Key Welfare and Infrastructure Projects
The budget also prioritizes two of the most significant electoral promises under the Super Six agenda: Talliki Vandanam and Annadata Sukhibhava. These welfare schemes aim to support women and farmers, ensuring financial security and stability for vulnerable sections of society.
Intra-Linking of Rivers and Irrigation Projects
The ambitious Godavari-Banakacherla intra-linking of rivers project was mentioned in the budget speech, signaling the government’s intent to improve water resource management. However, there was no specific mention of the fund allocation for this initiative, leaving room for further discussions on its implementation.
Meanwhile, the budget has reflected the government’s commitment to the completion of Polavaram Project Phase 1, with a necessary allocation of ₹6,705 crore. This major irrigation project is expected to transform the state’s agricultural landscape and enhance water security for farmers.
Amaravati Capital Development
A notable highlight of the budget is the renewed focus on the Amaravati Capital Project. Finance Minister Payyavula Keshav announced that the government is prepared to launch the Amaravati project on a grand scale, with ₹6,000 crore allocated for its development. However, this announcement sparked a debate in the Assembly. Tadikonda MLA Tenali Sravan Kumar pointed out that Amaravati is a self-sustained project and, therefore, does not require separate funding in the state budget. This divergence of views reflects ongoing political discussions surrounding the capital city’s future.
Comparisons with Previous Budgets and Future Outlook
Compared to previous years, the 2025-26 budget underscores the government’s continued focus on welfare-driven governance, infrastructure expansion, and fiscal responsibility. While significant allocations have been made for welfare and social schemes, economic experts emphasize the need for sustainable revenue generation to balance the rising fiscal deficit.
With key projects like Polavaram, Amaravati, and intra-river linking in focus, the state’s long-term development strategy is evident. However, certain ambiguities—such as the lack of specific allocations for the Godavari-Banakacherla project—may invite further scrutiny in the coming weeks.
Conclusion
The Andhra Pradesh 2025-26 budget is a blend of welfare-centric policies, capital investments, and strategic economic planning. With over ₹3.22 lakh crore in total outlay, the government has reinforced its commitment to social upliftment and infrastructure development. However, the high fiscal deficit remains a concern, requiring prudent financial management in the months ahead.
As the budget discussions continue in the Assembly, key stakeholders—including policymakers, economists, and the public—will closely analyze the allocations and their impact on the state’s growth trajectory. The successful execution of these proposals will determine Andhra Pradesh’s economic and social progress in the coming years.