AP Unveils ₹3.32 Lakh Crore State Budget

Keshav described the Budget as an “intentional and visionary” roadmap to build a self-reliant, future-ready state under the Swarna Andhra 2047 Vision.

The finance minister said the government had steered AP from fiscal stress towards stability through discipline, reforms and investor confidence.

AP’s growth rebounded to 11.75 per cent in 2024–25 from an average 10.3 per cent during 2019–24, while the fiscal consolidation was on track, he said.

For 2026–27, revenue expenditure is estimated at ₹2,56,143 crore and capital expenditure ₹53,915 crore. The revenue deficit touched ₹22,002 crore (1.11 per cent of GSDP) and fiscal deficit ₹75,868 crore (3.84 per cent), marking a steady fall from the 5.11 per cent in 2024–25.

The state, Keshav said, inherited liabilities of ₹9.74 lakh crore but had begun renegotiating high-cost debt. Loans worth ₹43,298 crore have been swapped to lower interest rates, saving ₹327 crore annually, with further restructuring planned.

An AP Wealth Fund would be set up with a seed corpus of ₹100 crore to mobilise long-term capital.

A major highlight was a renewed thrust on Amaravati. Payyavula Keshav thanked Prime Minister Narendra Modi for supporting legislation to accord statutory status to Amaravati as the permanent capital.

Administrative sanction has been given for 97 works worth ₹57,868 crore under a self-sustaining financial model. The municipal administration and urban development department has been allocated ₹14,539 crore, with works gaining pace to realise “the people’s capital.”

Irrigation has been placed at the centre of the growth strategy with an allocation of ₹18,224 crore.

Major irrigation projects include Polavaram (over 60 per cent progress), BRR Vamsadhara Phase-II, AVR Handri-Neeva and Veligonda, besides the revival of 6,047 water user associations.

Agriculture and allied sectors get ₹13,598 crore, while ₹500 crore is earmarked for the price stabilisation fund.

The Rayalaseema global horticulture hub plan with a cash component of ₹30,000 crore aims to expand the horticulture area and generate nine lakh jobs. Under Annadata Sukhibhava–PM Kisan, ₹6,660 crore was released to 46.86 lakh farmers in 2025–26.

School Education gets ₹32,308 crore, including ₹1,500 crore for infrastructure overhaul; higher education ₹2,567 crore; and skill development ₹1,232 crore. Panchayat Raj and Rural Development would receive ₹22,942 crore, while health is allotted ₹19,306 crore under Project Sanjeevani reforms.

Welfare allocations include ₹20,644 crore (SC), ₹9,190 crore (ST), ₹51,021 crore (BC), ₹6,090 crore (minorities) and ₹4,582 crore (women, children and differently abled). Pensions worth over ₹58,000 crore were distributed in 19 months.

Keshav highlighted ₹9.68 lakh crore worth of investment proposals since June 2024 and a record ₹13.25 lakh crore in commitments at the Global Partnership Summit. A $15 billion Google AI-powered data centre in Visakhapatnam was cited as a landmark FDI.

Energy receives ₹13,934 crore, transport and roads ₹9,856 crore, home ₹9,165 crore and industries department₹3,161 crore.

Free power supply up to 200 units for handlooms and 500 units for power looms would begin from April 1, 2026, Keshav said.

Calling the Budget a balancing act between ambition and responsibility, the finance minister said it was designed not merely for announcements, but for measurable impact across Andhra Pradesh.