AP Budget Projects Strong Revenue Growth, Higher Welfare Outlay

Vijayawada: AP’s Annual Financial Statement for 2026–27 presents an ambitious fiscal roadmap, projecting robust revenue growth, calibrated borrowings and sustained emphasis on welfare, education, health and infrastructure.

The state’s total revenue receipts for 2026–27 are estimated at Rs.2,34,140.13 crore, a significant rise from the revised estimate of Rs.1,96,903.52 crore in 2025–26, reflecting improved tax buoyancy and stronger central support.

The Budget projects a balancing act — expanding the government’s welfare commitments while ably managing borrowings and debt servicing pressures.

With tax revenues projected to grow substantially and central grants remaining steady, AP appears poised to maintain its developmental momentum, on condition that fiscal discipline is sustained.

Total Public Account receipts are estimated at Rs.3,00,936.76 crore for 2026–27. The opening cash balance for 2026–27 is projected at Rs.1,65,838.65 crore, reflecting structured treasury management.

Tax revenues showed a sharp upswing under which the state’s total tax revenue is pegged at Rs.1,90,207.93 crore in 2026–27, up from Rs.1,54,766.35 crore (revised estimate 2025–26). State GST (SGST) is projected at Rs.45,078.22 crore.

State excise is expected to contribute Rs.30,066.66 crore. Sales tax and trade-related taxes are estimated at Rs.24,125.67 crore.

The stamps and registration fees are projected to surge to Rs.18,701.35 crore. Corporation tax share stands at Rs.18,893.64 crore. Income tax share (other than corporation tax) is estimated at Rs.22,904.77 crore.

The continued expansion in GST collections and property transactions signals economic recovery and increased compliance.

Central grants remain strong. Grants-in-aid from the Centre are estimated at Rs.32,458.21 crore, indicating sustained fiscal transfers to support state schemes and centrally sponsored programmes.

Non-tax revenue is estimated at Rs.11,473.98 crore, lower than the revised estimate for 2025–26, reflecting realistic projections in dividends, interest receipts and departmental recoveries.

Public Debt: The state proposes total borrowings of Rs.97,315.41 crore in 2026–27, compared to `1,02,881.72 crore (revised estimate 2025–26). Internal debt is estimated at Rs.78,182 crore. Loans from the central government are projected at Rs.19,133.41 crore. Interest payments alone are expected to touch Rs.37,280.54 crore, underlining the growing debt servicing burden.

Expenditure on general services is estimated at Rs.79,460.70 crore. Pension liabilities remain substantial at Rs.23,712.64 crore, while administrative services and police together account for a sizable share.

Under social services, education, sports, art and culture are allocated Rs.32,962.02 crore, with general education alone receiving Rs.31,929.08 crore — signalling continued focus on school infrastructure and academic reforms.

The health sector sees an allocation of Rs.16,564.31 crore, including Rs.12,618.92 crore for medical and public health and Rs.3,945.39 crore for family welfare.

A major highlight is the allocation of Rs.52,075.50 crore for the welfare of Scheduled Castes, Scheduled Tribes, Backward Classes and minorities — underscoring the state’s continued welfare orientation.

Housing is allocated Rs.5,579.58 crore, while urban development receives Rs.4,749.36 crore, reflecting sustained investments in urban infrastructure. Outlay under social security and welfare stands at Rs.3,254.19 crore, while nutrition schemes are provided Rs.5,434.17 crore.