AP Budget 2026–27: ₹3.32 lakh crore plan focuses on Amaravati, welfare & fiscal reforms

Amaravati: Andhra Pradesh Finance Minister Payyavula Keshav on Saturday presented the 2026–27 Annual Budget in the Assembly with a total outlay of ₹3,32,205 crore.

He describing the budget as a comprehensive roadmap to restore fiscal stability, accelerate development and strengthen welfare delivery across the state.

Stating that the Budget goes beyond numbers, the Minister said the coalition government has initiated structural corrections to repair the state’s finances, reduce debt burden and revive economic momentum.

Focus on financial correction

Keshav said the Budget, for the first time, detailed the financial position inherited from the previous government, including pending bills, high-interest borrowings and stalled centrally sponsored schemes.

According to the Minister, the objective was to present a transparent picture of the state’s fiscal challenges while outlining corrective measures undertaken over the past months.

Major relief on interest payments

Highlighting debt restructuring efforts, the Finance Minister said the government successfully negotiated with financial institutions to reduce interest rates on loans contracted at higher rates.

Interest rates of 12.3 per cent were brought down to 9 per cent, covering loans worth ₹43,298 crore. This move is expected to save ₹327 crore annually.

He added that negotiations are underway to lower interest rates on an additional ₹1.20 lakh crore of loans. If finalised, the state could save around ₹1,658 crore every year.

Clearing dues, boosting capital works

The Minister said ₹24,811 crore worth of pending bills left unpaid by the previous administration have been cleared.

To revive economic activity, the government has spent ₹37,030 crore on irrigation and road infrastructure since assuming office.

In addition, ₹3,797 crore of Finance Commission grants were transferred to panchayats and municipalities to strengthen local governance.

The government also revived 85 centrally sponsored schemes by allocating ₹18,701 crore, enabling the state to unlock further central assistance.

AP wealth fund with ₹100 crore corpus

In a move aimed at long-term wealth creation, the government proposed setting up an AP Wealth Fund with an initial corpus of ₹100 crore.

The fund will invest in projects across the country, with private investors invited as partners. The Minister said the initiative is designed to generate sustained revenue for the state and is modelled on sovereign wealth fund practices adopted internationally.

Economic reforms to drive investment

Emphasising reforms, Keshav said the government introduced a “Speed of Doing Business” mechanism and launched a digital trade platform to improve ease of business.

Under the SASKI initiative, ₹6,544 crore has already been utilised, with another ₹1,438 crore expected to be spent by the end of the financial year.

He also cited the successful conduct of the Partnership Summit, the establishment of AP Logistics, and the formulation of 26 industrial policies to promote industrial growth.

Concluding his address, the Finance Minister said the 2026–27 Budget represents a calibrated strategy to rebuild Andhra Pradesh’s economy, restore fiscal discipline and lay the foundation for sustainable development.

🔹 Total Budget: ₹3,32,205 crore

🔹 Revenue Expenditure: ₹2,56,143 crore

🔹 Capital Expenditure: ₹53,915 crore

🔹 Revenue Deficit: ₹22,002 crore

🔹 Fiscal Deficit: ₹75,868 crore

Key Allocations:

• ₹6,000 crore for Amaravati capital construction

• ₹13,934 crore for Power sector

• ₹13,546 crore for Roads, Ports & Airports

• ₹3,161 crore for Industries

• ₹5,451 crore for Housing

• ₹4,000 crore for NTR Vaidya Seva

• ₹4,000 crore for Jal Jeevan Mission

• ₹1,037 crore for Swachh Bharat Mission

• ₹28,000 crore for Visakha Economic Region (covering 10 districts)

• Amaravati Economic Region with 9 districts

• ₹30,000 crore for Rayalaseema Global Horticulture Hub

🔹 Special Cyber Crime Police Station in every district

🔹 School Education – ₹32,308 crore

🔹 Panchayati Raj – ₹22,942 crore

🔹 Agriculture & Allied Sectors – ₹13,598 crore

🔹 Annadata Sukhibhava – ₹6,660 crore

🔹 Polavaram Project – ₹6,105 crore

🔹 Home Department – ₹9,165 crore

🔹 Municipal Administration – ₹14,539 crore

🔹 Water Resources – ₹18,224 crore

🔹 Hostels & Gurukuls – ₹300 crore

🔹 Scholarships for Students – ₹3,836 crore

🔹 Mid-Day Meal Scheme – ₹2,161 crore

🔹 NTR Bharosa – ₹27,719 crore