Andhra Pradesh began its Assembly sessions with the presentation of both the Agriculture Budget and the Annual Budget for 2026–27, setting the tone for a year focused on growth, welfare, and long term stability. Agriculture Minister Atchannaidu presented the Agriculture Budget and reaffirmed the government’s commitment to make farming profitable and sustainable. He said agriculture must become a viable profession if the rural economy is to strengthen. A strong rural economy, he noted, is the foundation of a prosperous state.
The government aims to transform the farmer into a true stakeholder in growth. Under the “Rythanna Kosam” initiative, crop planning is being implemented at the Rythu Seva Kendra level. Focus areas include water security, demand-driven crops, agri technology, food processing, and assured government support. Modern tools such as artificial intelligence, drones, robotics, and Internet of Things are being introduced to improve productivity and reduce risk. Eleven crops have been identified as growth engines to achieve a targeted 15 percent annual growth in agriculture as part of the Swarna Andhra 2047 vision.
Farm families continue to receive financial support of ₹20,000 per year under Annadata Sukhibhava and PM Kisan. Soil health remains a priority with six lakh soil health cards distributed and 1,250 metric tonnes of micronutrients supplied free of cost. Mechanisation is expanding with equipment worth ₹136.62 crore offered at 50 percent subsidy. The state has proposed ₹139.65 crore for further farm mechanisation.
Finance Minister Payyavula Keshav presented a total budget of ₹3,32,205 crore for 2026–27. Revenue expenditure stands at ₹2,56,143 crore while capital expenditure is ₹53,915 crore. Revenue deficit is estimated at ₹22,002 crore and fiscal deficit at ₹75,868 crore.
Major allocations include ₹6,000 crore for Amaravati capital construction, ₹13,934 crore for the power sector, ₹13,546 crore for roads and ports, and ₹9,906 crore for major irrigation projects. ₹6,105 crore has been earmarked for the Polavaram project. Welfare schemes such as NTR Bharosa, Thalliki Vandanam, Deepam 2.0, and Annadata Sukhibhava received substantial funding.
The budget also emphasizes economic regions in Visakhapatnam, Amaravati, and Rayalaseema. Rayalaseema is being developed as a global horticulture hub with a planned investment of ₹30,000 crore. The government highlighted strong support from the Centre under Prime Minister Narendra Modi, especially in loan restructuring and infrastructure push.
In revenue terms, 38 percent of income comes from taxes, 30 percent from market borrowings, and 19 percent from the share in central taxes. On the expenditure side, welfare accounts for 17 percent, education 11 percent, and interest payments and loan repayments 18 percent.
The government maintains that this budget goes beyond numbers. It aims to balance welfare and development while steering Andhra Pradesh toward financial recovery and long term growth.
