Andhra Pradesh Budget 2026-27

On February 14, 2026, Finance Minister Sri Payyavula Keshav presented Andhra Pradesh Budget third time consecutively in the Legislative Assembly. This artice provides you a comprehensive budget analysis that helps in your competitive exams. We put all efforts to make this article accurate, simple and easy to understand. Read this article thoroughly and make notes

Total Budget Size: Rs. 3,32,205 crore (a 10.5% increase from RE 2025-26)

Quick Overview: Budget at a Glance

The Andhra Pradesh Budget 2026-27 represents a carefully balanced approach to development, with clear priorities:

Revenue vs Capital Split:

• Revenue Expenditure: Rs. 2,56,143 crore (77%)
• Capital Expenditure: Rs. 53,915 crore (16%)
• Loans and Advances: Rs. 5,218 crore (2%)
• Debt Repayment: Rs. 17,683 crore (5%)

Government’s Income

• Tax Revenue: 38 paise of every rupee
• Open Market Loans: 30 paise
• Share of Central Taxes: 19 paise
• Grants-in-aid: 10 paise
• Non-Tax Revenue: 3 paise

Government’s Expenditure

• Welfare: 17 paise per rupee
• Interest & Principal Repayment: 18 paise
• Education: 11 paise
• Finance Department: 8 paise
• Panchayat Raj & Rural Development: 7 paise
• Health, Medical & Family Welfare: 6 paise
• Water Resources: 6 paise
• Others: 27 paise

Fiscal Health

Fiscal health means how well a government manages its money, its income, spending, borrowing, and debt in a balanced way. A fiscally healthy government can pay its loans and interests on time, invest in development, avoid excessive borrowing etc,.

Deficit Reduction Trajectory:

Indicator	2024-25 (Actual)	2025-26 (RE)	2026-27 (BE)
Revenue Deficit	3.79% of GSDP	2.33%	1.11%
Fiscal Deficit	5.11% of GSDP	4.57%	3.84%
Primary Deficit	3.04% of GSDP	2.46%	1.95%

Key Achievement: Revenue deficit has been cut by two-thirds from 3.79% to 1.11% in just two years—a remarkable fiscal turnaround.

Debt Restructuring Success:

• Rs. 43,298 crore of high-cost loans renegotiated
• Savings: Rs. 327 crore per year
• Target: Another Rs. 1.2 lakh crore debt to be renegotiated
• Expected additional savings: Rs. 1,658 crore per year

Economic Growth

The state bounced back from an average growth rate of 10.3% during 2019-24 to 11.75% in 2024-25.

GSDP Growth Trajectory:

Year	GSDP (Rs. Crore)	Growth Rate
2022-23	13,07,976	15.58%
2023-24	14,23,900	8.86%
2024-25	15,91,226	11.75%
2025-26 (RE)	17,62,357	10.75%
2026-27 (BE)	19,75,073	12.07%

Investments in Andhra Pradesh

• 1.19 lakh new investment proposals worth Rs. 9.68 lakh crore approved since June 2024
• Employment potential: 5.41 lakh jobs
• Global Partnership Summit 2025: Rs. 13.25 lakh crore commitments, 610 MoUs
• Google AI Data Centre: $15 billion (Rs. 1.35 lakh crore) investment (India’s largest single FDI)

SwarnaAndhra @2047

The budget is firmly anchored in the SwarnaAndhra @2047 vision, a comprehensive roadmap to transform Andhra Pradesh into a wealthy, healthy, happy, and sustainable state by India’s centenary year.

10 Guiding Principles (Padi Sutralu):

1. Zero Poverty (P4 – Public, Private, People, Partnership)
2. Population Management & Human Resource Development
3. Skilling & Employment
4. Water Security
5. Farmer – Agri Tech
6. Global-Best Logistics
7. Cost Optimization – Energy & Fuel
8. Product Perfection
9. Swachh Andhra
10. Deep Tech – All Walks of Life

Vision 2047 Targets:

Parameter	Current	Target 2047
Population	5.3 Crore	5.8 Crore
Life Expectancy	70.6 years	85 years
Urban Population	36%	60%
Literacy Rate	72%	100%
Female Labour Force Participation	45.8%	>80%
Unemployment Rate	4.1%	<2%
GSDP (nominal)	Rs. 17.6 lakh cr	Rs. 308 lakh cr
GSDP per capita	Rs. 3.28 lakh	Rs. 54.6 lakh
GSDP Growth Rate	10.75%	11.97%

Super Six Schemes

The government’s flagship Super Six schemes are providing direct benefits to crores of people despite significant financial constraints.

1. NTR Bharosa

The state provides pensions ranging from Rs. 4,000 to Rs. 15,000 through Direct Benefit Transfer—making Andhra Pradesh the only state with such comprehensive pension coverage.

• Allocation for NTR Bharosa scheme 2026-27: Rs. 27,719 crore
• Over Rs. 58,000 crore distributed in 19 months since June 2024.

2. Talliki Vandanam

Every mother receives Rs. 15,000 per child annually to support their education, recognizing that when you empower a mother, you transform a family.

• Allocation 2026-27: Rs. 9,668 crore
• Beneficiaries: 67.27 lakh students (2025-26)

3. Annadata Sukhibhava

The government provides Rs. 20,000 per annum to farmer families, which includes Rs. 6,000 from PM-Kisan and Rs. 14,000 from the state government.

• Allocation 2026-27: Rs. 6,600 crore
• Beneficiaries: 46.86 lakh farmer families (2025-26)

Additional Support for Farmers:

• Free electricity up to specified limits
• Price Stabilization Fund: Rs. 500 crore
• Support for onion farmers, mango farmers, cocoa, and tobacco cultivators

4. Deepam 2.0

Three free LPG cylinders per year to women beneficiaries, with money credited directly into their accounts.

• Allocation 2026-27: Rs. 2,601 crore
• Beneficiaries: 1.08 crore women (2025-26)

5. Stree Shakti scheme

Launched on August 15, 2025, this scheme has transformed women’s mobility and participation in public life.

• Allocation 2026-27: Rs. 1,420 crore
• Nearly 40 crore women passengers benefited as of January 2026
• Free bus travel extended to differently-abled men as well

6. Youth Support & Employment

The government has created 30,607 government jobs across different categories and filled 15,941 teacher posts through Mega DSC-2025.

• Skill Development Budget: Rs. 1,232 crore
• 83 Government ITIs with 167 industry partnerships
• 98% placement/apprenticeship rate for Government ITI students
• One Family–One Entrepreneur initiative for SHG women

Department-wise Major Allocations

Budget allocation for Education: ₹36,107 crore

Education receives the highest priority, with comprehensive allocations across all levels:

• School Education: Rs. 32,308 crore
• Higher Education: Rs. 2,567 crore
• Skill Development & Training: Rs. 1,232 crore

Budget allocation for Water Resources: ₹18,224 crore

Water security is at the center of the growth strategy, with climate variability demanding resilience through storage and efficient distribution.

Major Projects:

• Polavaram: Rs. 6,105 crore
• Other Major Irrigation: Rs. 9,906 crore
  • B.R.R. Vamsadhara Phase-II
  • AVR Handri-Neeva (45 TMC Krishna water lifted for first time)
  • Poola Subbaiah Veligonda
  • Polavaram–Nallamala Sagar link
• HNSS Project: Completed in 100 days, delivering water to farmers

Budget allocation for Agriculture & Allied Services: ₹ 13,598 crore

Key Initiatives:

Digital Agriculture:

• APAIMS 2.0 (AP Agriculture Information Management System)
• Real-time crop analytics, pest surveillance
• Climate intelligence and scheme monitoring
• Every farmer, crop, and acre digitally recorded

Rastriya Krishi Vikas Yojana: Rs. 1,927 crore

Natural Farming: Target 12.5 lakh acres

Soil Health: 6 lakh soil samples collection and analysis

Cooperatives Revival:

• 2,021 PACS digitized, 2,017 operating as e-PACS
• 53.2 lakh members served
• Rs. 7,600 crore agricultural credit extended

Budget allocation for Panchayat Raj & Rural Development: ₹ 22,942 crore

• Jal Jeevan Mission: Revival and Acceleration
  • Extended timeline to 2028
  • Surface water-based multi-village schemes
  • 55 litres per capita per day assured

• Rural Connectivity: 4,000+ km rural roads completed or nearing completion
• SASCI (Special Assistance): Rs. 2,123 crore
• Training Achievement: AP secured first rank nationally by training 3.44 lakh elected representatives and functionaries

Budget allocation for Health ₹ 19,306 crore

Dr. NTR Vaidya Seva Trust: Rs. 4,000 crore

• Health insurance up to Rs. 25 lakh per family

Project Sanjeevani:

• Preventive healthcare focus
• Citizen health screening pilot in Kuppam
• 63,867 individuals screened with 41 diagnostic tests
• 6,300+ high-risk cases identified and linked to care

Infrastructure:

• ESI Hospitals: 100-bed facilities at Vizianagaram, Guntur, Nellore
• 30-bed hospitals at Kurnool, Sri City, Atchutapuram, Srikakulam
• Tirupati ESI Hospital upgraded from 50 to 100 beds

Budget allocation for Amaravati capital: ₹ 6,000 crore

The Municipal Administration and Urban Development has been allocated ₹ 14,539 crore in the 2026-27 budget. Within this allocation, ₹ 6,000 crore was given to Amaravati capital development.

• Funding Model: Self-sustaining model with funds tied up from financial institutions
• Union Government Support: Process initiated for statutory status as permanent capital through Parliament legislation

Budget allocation for Industry & Infrastructure: ₹ 38,779 crore

• Industries & Commerce: Rs. 3,161 crore
• Infrastructure & Investments: Rs. 1,283 crore
• IT, Electronics & Communications: Rs. 536 crore
• Energy: Rs. 13,934 crore
• Transport, Roads & Buildings: Rs. 9,856 crore

Key Developments:

City Economic Regions:

1. Visakhapatnam Economic Region (VER): Rs. 28,000 crore proposals
   • Covers 10 districts from Srikakulam to Konaseema
   • 7 growth drivers, 41 high-impact projects
   • Manufacturing, services, infrastructure, urbanization
2. Amaravati Economic Region: covering 9 districts
3. Tirupati Region

Rayalaseema Global Horticulture Hub: Rs. 30,000 crore proposals

• Horticulture area expansion: from 8.41 lakh ha to 14.41 lakh ha by 2030
• 200+ clusters across 303 mandals in 10 districts
• 9 lakh direct employment opportunities
• Product perfection with global best practices

Landmark Investments:

• Google AI Data Centre (Visakhapatnam): $15 billion
• Integrated Steel Plant (Anakapalli)
• Bulk Drug Park (Nakkapalli)
• Semi-conductor facility (Orvakal)
• 175 MSME Parks (one per constituency)
• 500 CBG Plants
• Green Aluminium Project (Kakinada)

Free Power to Weavers: Rs. 200 units for handlooms, Rs. 500 units for powerlooms (from April 1, 2026)

Budget allocation for Social Welfare: ₹ 91,445 crore

• SC Component: Rs. 20,644 crore
• ST Component: Rs. 9,190 crore
• BC Component: Rs. 51,021 crore
• EWS Welfare: Rs. 10,699 crore
• Minority Welfare: Rs. 6,090 crore
• PMJVK: Rs. 300 crore
• Women & Child Welfare: Rs. 4,582 crore

Budget allocation for Housing: ₹ 6,357 crore

• Achievement: 3 lakh houses completed since June 2024
• Target: 6 lakh houses in 2026-27

Additional Financial Assistance:

• Rs. 50,000 for SC/BC families
• Rs. 75,000 for ST families
• Rs. 1,00,000 for PVTG families

Urban Housing (under MAUD): 25 lakh house pattas/houses for EWS under PMAY(U) – NTR NAGARS

Budget allocation for Energy: ₹ 13,934 crore

Renewable Energy:

• 55 projects worth Rs. 2.88 lakh crore allotted since June 2024
• Capacity: 15.56 GW Solar + 4.86 GW Wind + 17.7 GW PSP
• Green Hydrogen: 1 MMTPA

Subsidies Provided:

• Agriculture power: Rs. 11,000+ crore to 22.5 lakh farmers
• Aqua tariff: Rs. 890 crore to 48,500+ consumers

Budget allocation for Police: ₹ 9,165 crore

The government is working to restore the dignity and pride of the police force, which was dented under the previous regime.

Modernization Initiatives:

1. 3,000 New Vehicles: Fleet upgrade underway
2. Cybercrime Infrastructure:
   • Dedicated police stations in every district
   • SMART Policing Labs
   • AI-enabled policing projects
   • CCTV and drone deployment
3. New AP Police Academy: 94 acres sanctioned, Rs. 15 crore allocated for construction
4. 4 New India Reserve APSP Battalions:
   • Srikakulam, Rajahmundry, Prakasam, Chittoor
5. 5,757 Stipendiary Cadet Trainee Constables: Inducted with stipend increased from Rs. 4,500 to Rs. 12,000
6. Group Personal Accident Insurance: Revived from Rs. 20 lakh to Rs. 45 lakh coverage
7. EAGLE Wing: Special unit with drones to tackle ganja menace
8. Shakti App: 7-minute response for women’s safety

Judiciary: Rs. 349 crore for court buildings and quarters; 100 new courts sanctioned

Budget allocation for Labour & Employment: ₹ 735 crore

ESI Healthcare Expansion:

• 100-bed hospitals: Vizianagaram, Guntur, Nellore
• 30-bed hospitals: Kurnool, Sri City, Atchutapuram, Srikakulam

Budget allocation for Tourism: ₹ 439 crore

AP Tourism Policy 2024-29:

• Industry status granted
• Capital subsidies, SGST reimbursements
• Rs. 20,088 crore attracted through 117 MoUs
• 1,22,637 jobs potential

Government of India Tourism Grant: Rs. 428 crore (highest since bifurcation)

• 8 major destinations: Suryalanka, Akhanda Godavari, Gandikota, Simhachalam, Borra Caves, Ahobilam, Nagarjuna Sagar

Child Budget: ₹ 24,686 crore

A specialized child-centric budget ensures that every child in AP grows up protected, educated, and empowered.

Structure:

• Part A (100% child-targeted): Rs. 16,168 crore (65.5%)
• Part B (30-99% child-targeted): Rs. 8,517 crore (34.5%)

Major Components:

• Education: Rs. 10,000+ crore
• Nutrition: Rs. 5,000+ crore
• Child Protection: Rs. 220+ crore
• Scholarships: Rs. 2,500+ crore

Union Budget 2026-27: Opportunities for AP

The Union Budget offers numerous opportunities that AP is well-positioned to capture:

1. Purvodaya Scheme: East Coast Industrial Corridor development, e-buses
2. Rayalaseema Global Horticulture Hub: Taking shape with central support
3. Challenge Mode Projects: AP preparing to compete for:
   • Chemical Park
   • Mega Textile Park
   • City Economic Regions
   • University Townships
4. New Initiatives:
   • Rare Earth Corridors
   • Data Centres
   • Regional Medical Hub
   • NIPER (Pharma Education & Research)
   • Seaplane Manufacturing
   • Container Manufacturing
   • Girls’ Hostels in every district

Financial Reforms & Innovations

AP Wealth Fund

A sovereign wealth fund with Rs. 100 crore seed corpus inspired by Norway and Abu Dhabi funds.

• Vision: Create a fund large enough to run the state, benefiting future generations.
• Strategy: Invite private equity investors to invest across the country and generate wealth for the state.

Debt Swapping Success

High-cost loans being refinanced at lower rates:

• Completed: Rs. 43,298 crore (saving Rs. 327 crore/year)
• Target: Rs. 1.2 lakh crore (expected savings: Rs. 1,658 crore/year)
• Interest rates: Bringing down from 12.3% to below 9%

SASCI Performance

Special Assistance for Capital Investments:

• 2025-26: Rs. 6,544 crore availed
• Total: Rs. 7,982 crore (almost double of Rs. 4,090 crore in 2023-24)

Reimagining Public Finance Summit

First-of-its-kind summit held in Visakhapatnam (November 2025):

• Delegates from other states, international and national financial institutions
• Triggered establishment of AP Logistics Corporation
• Opened pathways for innovative financing in public sector

Speed of Doing Business

Since June 2024, the government has introduced 26 revamped policies making AP globally competitive:

1. AP Industrial Development Policy 4.0
2. AP MSME & Entrepreneur Development Policy 4.0
3. AP Integrated Clean Energy Policy
4. AP Innovation & Startup Policy 4.0
5. AP Tourism Policy 2024-29
6. AP Information Technology & GCC Policy 4.0
7. AP Quantum Computing Policy
8. AP Food Processing Policy 4.0
9. AP Neighbourhood Workspace Policy

Employees’ Welfare

Process Reforms:

• GPF and Pension: Paperless and seamless
• Promotions: Online through e-DPC module

Financial Benefits:

• DA/DR arrears: Rs. 1,100 crore released

APPSC Exam Preparation: Key Points to Remember

High Probability MCQs

Budget Figures:

• Total Budget: Rs. 3,32,205 crore
• Revenue Expenditure: Rs. 2,56,143 crore
• Capital Expenditure: Rs. 53,915 crore
• Revenue Deficit: 1.11% of GSDP
• Fiscal Deficit: 3.84% of GSDP
• GSDP 2026-27: Rs. 19,75,073 crore (12.07% growth)

Super Six Allocations:

• NTR Bharosa: Rs. 27,719 crore
• Talliki Vandanam: Rs. 9,668 crore (67.27 lakh students)
• Annadata Sukhibhava: Rs. 6,600 crore (46.86 lakh farmers)
• Deepam 2.0: Rs. 2,601 crore (1.08 crore women)
• Stree Shakti: Rs. 1,420 crore (40 crore passengers)

Department-wise Top 5:

1. School Education: Rs. 32,308 crore
2. BC Welfare: Rs. 23,651 crore (includes full component)
3. Panchayat Raj & Rural Development: Rs. 22,942 crore
4. Social Welfare: Rs. 20,644 crore (SC Component)
5. Health: Rs. 19,306 crore

Welfare Components:

• SC Component: Rs. 20,644 crore
• BC Component: Rs. 51,021 crore
• ST Component: Rs. 9,190 crore
• EWS Welfare: Rs. 10,699 crore
• Minority Welfare: Rs. 6,090 crore
• Child Budget: Rs. 24,686 crore

Infrastructure:

• Water Resources: Rs. 18,224 crore (Polavaram: Rs. 6,105 crore)
• Amaravati: Rs. 6,000 crore (97 works worth Rs. 57,868 crore sanctioned)
• Energy: Rs. 13,934 crore
• Transport & Roads: Rs. 9,856 crore
• Housing: Rs. 6,357 crore

Economic Initiatives:

• VER (Visakhapatnam Economic Region): Rs. 28,000 crore proposals
• Rayalaseema Horticulture Hub: Rs. 30,000 crore proposals
• Google AI Data Centre: $15 billion (Rs. 1.35 lakh crore)
• AP Wealth Fund: Rs. 100 crore seed corpus

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FAQs on Andhra Pradesh Budget 2026-27

Disclaimer: This article is prepared for educational purposes, specifically for APPSC aspirants. All figures and data are sourced from official Andhra Pradesh Budget documents 2026-27, including the Budget Speech, Budget in Brief, Outcome Budget, SC Component, ST Component, and Child Budget. While every effort has been made to ensure accuracy, aspirants should verify critical data from official government sources for examination purposes.

All the best for your APPSC journey! May you serve Andhra Pradesh with pride.

Reference: AP Official Website