VIJAYWADA: Finance minister P Keshav on Saturday presented the annual budget for 2026-27 with an outlay of Rs 3,32,205 crore for 2026–27 to the assembly.
This is just Rs 10, 000 crore jump from the last year’s budget of Rs.2.22 lakh crore. The minister put the revenue expenditure at Rs 2,56,143 crore while capital expenditure has been estimated at Rs 53,915 crore.
The revenue deficit was projected at Rs 22,002 crore (1.11% of GSDP) and the fiscal deficit at Rs 75,868 crore (3.84% of GSDP), indicating a calibrated fiscal consolidation path.
Describing the budget as a roadmap of hope, shaped not merely by income and expenditure statements but by the aspirations of farmers, youth, women and vulnerable communities across Andhra Pradesh, finance minister said the budget reflected corrective efforts initiated in 2024 and the development trajectory aligned with the Swarna Andhra @2047 vision under the leadership of chief minister Nara Chandrababu Naidu.
Key Department Allocations 2026–27 (₹ crore)- Water Resources / Irrigation: 18,224
- Transport, Roads & Buildings: 9,856
- Panchayati Raj & Rural Development: 22,942
- Municipal Administration & Urban Development: 14,539
- Industries & Commerce: 3,161
- Minorities Welfare: 6,090
- Women, Children & Senior Citizens Welfare: 4,582
Keshav noted that 2024–25 showed a revenue deficit of Rs 60,285 crore and a fiscal deficit of Rs 81,362 crore, accounting for 3.79% and 5.11% of GSDP respectively. Under Revised Estimates for 2025–26, revenue expenditure stood at Rs 2,38,021 crore and capital expenditure at Rs 39,498 crore, with a revenue deficit of Rs 41,118 crore (2.33%) and fiscal deficit of Rs 80,567 crore (4.57%). He asserted that the state was steadily moving from fiscal stress toward stability.
The minister highlighted irrigation as central to growth, stating that Rs 18,224 crore had been proposed for the water resources department. Progress on Polavaram included clearance of Rs 5,000 crore in pending bills and 91% completion of the diaphragm wall, with overall project progress crossing 60%.
He proposed Rs 13,598 crore was proposed for agriculture and allied sectors. He said that they have released Rs 6,660 crore to 46.86 lakh farmer families in 2025–26 under Annadatha Sukhibhava–PM Kisan. The Price Stabilisation Fund would receive Rs 500 crore after over Rs 1,200 crore had been spent this year. Cooperative credit of Rs 7,600 crore was extended to 53.2 lakh members.
Education received a major thrust in the budget. The school education department was allocated Rs 32,308 crore, including Rs 1,500 crore for infrastructure overhaul. Higher education would receive Rs 2,567 crore and skill development Rs 1,232 crore. Panchayati Raj and rural development was allocated Rs 22,942 crore, with over 4,000 km of rural roads strengthened. The municipal administration and urban development department received Rs 14,539 crore, with capital city Amaravati works worth Rs 57,868 crore sanctioned. He said that they would facilitate Rs.4000 crore to Amaravati through UIDF.
The health and medical department was allocated Rs 19,306 crore after clearing Rs 6,486 crore in liabilities. Energy received Rs 13,934 crore, with Rs 11,000 crore released towards agriculture power subsidy benefiting 22.5 lakh farmers. Transport, roads and buildings was allocated Rs 9,856 crore, including 6,036 km of road works worth Rs 2,499 crore and induction of 750 e-buses. Civil supplies was allocated Rs 3,821 crore. Under Deepam 2.0, Rs 2,897 crore had been credited to 1.08 crore women for LPG cylinders. Paddy procurement payments of Rs 10,580 crore were transferred to 8.54 lakh farmers.
Keshav said the budget was designed to build a stronger and self-reliant Andhra Pradesh.Get the latest lifestyle updates on Times of India, along with
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