AP Budget Focuses on Education, Welfare and Rural Growth

Vijayawada: The Andhra Pradesh Budget for 2026–27 has placed strong emphasis on school education, backward class welfare, rural development and healthcare, reflecting the government’s continued thrust on inclusive growth and social sector expansion.

Finance minister Payyavula Keshav presented a Rs.3,32,205 crore Budget in the state Assembly on Saturday.

A detailed look at the department-wise allocations reveals that school education has emerged as the single largest beneficiary, with an allocation of Rs.32,308.32 crore. The government has underlined its commitment to strengthening foundational learning, infrastructure upgradation and digital initiatives in government schools.

The Backward Classes Welfare Department received Rs.23,650.88 crore, signalling sustained support for these communities through scholarships, hostels, financial assistance and skill development schemes.

A substantial Rs.22,941.54 crore has been earmarked for Panchayat Raj and Rural Development, aimed at boosting rural infrastructure, sanitation, road connectivity and livelihood opportunities in villages across the state.

The Health department has been allocated Rs.19,306.04 crore, reflecting the government’s focus on strengthening public healthcare delivery, hospitals and family welfare services.

The water resources department has been allotted Rs.18,223.67 crore, underlining the importance of irrigation projects and water management to support agriculture and ensure drinking water supply.

Urban expansion has also received attention, with Rs.14,538.68 crore earmarked for municipal administration and urban development, intended to improve civic infrastructure in towns and cities.

The power sector has been allocated Rs.13,934.25 crore to ensure an uninterrupted electricity supply and strengthen transmission and distribution networks.

Agriculture continues to remain a priority sector, with Rs.11,745.21 crore allocated for farming and allied activities. The social welfare department has been granted Rs.11,118.84 crore, while EWS Welfare has received Rs.10,699.33 crore to support economically weaker sections.

Regarding revenue composition, the budget outlines a diversified revenue structure of every rupee earned by the state under which 38 per cent comes from tax revenue, 3 per cent is generated through non-tax revenue, 30 per cent is raised through open market borrowings, 19 per cent comes as the state’s share in central taxes and 10 per cent is received through grants-in-aid from the Centre.

On the expenditure side, welfare programmes account for 17 per cent of every rupee spent, underlining the government’s pro-poor orientation. Education receives 11 per cent of total expenditure, while finance-related commitments take up 8 per cent. Panchayat Raj and rural development account for 7 per cent, followed by health and family welfare at 6 per cent and water resources at 6 per cent.

Municipal administration and urban development claim 4 per cent, the power sector 4 per cent, and agriculture and allied sectors another 4 per cent.

Interest payments and debt repayments consume a significant 18 per cent of total expenditure, highlighting the fiscal pressure posed by past borrowings. The remaining 15 per cent covers departments such as home, roads and buildings, and industries.

The 2026–27 Budget thus reflects a calibrated balancing act — prioritising education, welfare and rural infrastructure while managing debt obligations and sustaining developmental momentum across sectors.