Andhra Pradesh has announced a detailed budget for the 2026-27 fiscal year, which is over ₹3.32 lakh crore, with Finance Minister Payyavula Keshav stating that the budget will strike a balance between social welfare schemes and infrastructure development. While tabling the budget in the state assembly on Saturday, Keshav said that the estimated revenue expenditure would be ₹2.56 lakh crore, along with a capital expenditure of nearly ₹54,000 crore.
As per the estimates, the state will have a revenue deficit of around ₹22,000 crore, which is about 1.11 per cent of the Gross State Domestic Product (GSDP), while the fiscal deficit is estimated to be nearly ₹76,000 crore, or 3.84 per cent of the GSDP.
The budgetary provisions reflect major outlays in the social sectors, with the BC component getting ₹51,021 crore and the School Education sector getting ₹32,308 crore. In addition, the Health, Medical & Family Welfare Department was allocated ₹19,306 crore. What is noteworthy, however, is that the Panchayati Raj & Rural Development Department, administered by Deputy Chief Minister Pawan Kalyan, got a major allocation of close to ₹23,000 crore.
In a sharp critique of the preceding administration, Keshav argued that two years is insufficient to fully rebuild the state following the "catastrophic" impacts of the irrational bifurcation in 2014 and what he termed the "misrule" between 2019 and 2024. He stated that the former deprived the state of a vibrant capital and growth engines, while the latter compounded these issues through policy paralysis and financial recklessness. Ultimately, Keshav described the budget not merely as a set of figures, but as a roadmap designed to fulfill the aspirations of the state's five crore citizens.
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