Andhra Pradesh presents ₹3.32 lakh crore budget for 2026–27, prioritises education, welfare and fiscal reforms

The Andhra Pradesh government on Saturday (February 14, 2026) presented a comprehensive and forward-looking Budget for the financial year 2026–27, with a total outlay of ₹3,32,205 crore. Of this, revenue expenditure is estimated at ₹2,56,142 crore, while capital expenditure stands at ₹48,697 crore, reflecting a continued emphasis on asset creation and long-term development.

Andhra Pradesh Budget highlights: Finance Minister Keshav outlines ₹3.32 lakh crore outlay; ₹8.3 crore allocation for VB G RAM-G

The estimated revenue deficit is pegged at ₹22,002 crore, accounting for 1.11% of the Gross State Domestic Product (GSDP), while the fiscal deficit is projected at ₹75,868 crore, or 3.84 per cent of GSDP.

Presenting the Budget in the State Assembly, Finance Minister Payyavula Keshav said the allocations reflect the government’s commitment to inclusive growth, fiscal discipline, and sustainable development.

Emphasising the importance of investing in human capital, he announced that School Education has received the highest allocation of over ₹32,300 crore. This is followed by significant outlays for Backward Classes (BC) Welfare at ₹23,650.88 crore. Social Welfare and EWS Welfare departments have been allocated ₹11,118.84 crore and ₹10,699.33 crore, respectively. “The choices we make today will define the future we will see tomorrow,” the Minister said, underlining the government’s long-term vision.

Agriculture and irrigation continue to remain top priorities. The government has earmarked ₹9,906 crore for major irrigation projects to strengthen water security across the State, including ₹6,105 crore for the prestigious Polavaram Project.

Under farmer welfare initiatives, ₹6,600 crore has been allocated for the Annadata Sukhibhava scheme. Additionally, ₹1,927 crore has been set aside for the Centre-sponsored Rashtriya Krishi Vikas Yojana and ₹190 crore for the Pradhan Mantri Krishi Sinchayee Yojana. To shield farmers from market fluctuations, ₹500 crore has been allocated to the Price Stabilization Fund, ₹250 crore for crop insurance, and ₹260 crore for fisheries welfare initiatives.

On the welfare front, ₹8,365 crore has been earmarked for the VB G RAM -G scheme, while housing programmes in urban and rural areas will receive ₹5,451 crore. The Dr. NTR Vaidya Seva Trust has been allocated ₹4,000 crore to enhance health coverage for economically weaker sections. Another ₹4,000 crore has been earmarked for the Jal Jeevan Mission to ensure safe drinking water supply across the State.

In the health sector, ₹2,144 crore has been allocated for Reproductive and Child Health programmes, and ₹838 crore under the Ayushman Bharat Health Infrastructure Mission. Sanitation and livelihoods have also received focused attention, with ₹1,037 crore for the Swachh Bharat Mission and ₹955 crore for the National Rural Livelihood Mission.

Addressing concerns over debt, the Finance Minister said the previous regime had borrowed at interest rates as high as 12.3%. The present government has initiated debt restructuring measures, renegotiating loans worth ₹43,298 crore and securing annual savings of ₹327 crore. It now aims to renegotiate an additional ₹1.2 lakh crore in debt, potentially saving ₹1,658 crore annually.

The Minister also proposed the creation of an AP Wealth Fund with a seed corpus of ₹100 crore, inviting private equity participation to generate long-term wealth for the State.

Describing the Budget as visionary and intentional, he said it seeks to build a stronger, self-reliant, and future-ready Andhra Pradesh while maintaining fiscal responsibility and developmental ambit.

Published – February 14, 2026 02:14 pm IST