The Andhra Pradesh government has unveiled a ₹3,32,205 crore budget for the financial year 2026–27, placing strong emphasis on welfare, infrastructure, agriculture, and regional economic expansion. Finance Minister Payyavula Keshav presented the budget in the Assembly, describing it as a roadmap for balanced development despite fiscal pressures.
Overall Financial Structure
The total outlay stands at ₹3,32,205 crore. Revenue expenditure accounts for ₹2,56,143 crore while capital expenditure is ₹53,915 crore. The revenue deficit is estimated at ₹22,002 crore and the fiscal deficit at ₹75,868 crore.
Capital and Infrastructure Development
₹6,000 crore has been allocated for the construction of Amaravati as the state capital. The Polavaram irrigation project has received ₹6,105 crore. Major irrigation projects have been allotted a total of ₹9,906 crore. Roads, ports, and airports have been given ₹13,546 crore. The power sector has been allocated ₹13,934 crore. Industries will receive ₹3,161 crore. Housing has been provided with ₹5,451 crore.
The government has also announced ₹28,000 crore for the Visakhapatnam Economic Region. Visakhapatnam, Amaravati, and Tirupati have been identified as key growth engines. Rayalaseema is being positioned as a Global Horticulture Hub with the expansion of the horticulture area to 14.41 lakh hectares by 2030.
Welfare and Social Security
Deputy Chief Minister Pawan Kalyan and Minister Nara Lokesh oversee major welfare-linked departments, and their sectors have received substantial allocations.
NTR Bharosa has been allocated ₹27,719 crore. Thalliki Vandanam has received ₹9,668 crore. Deepam 2.0 has been allotted ₹2,601 crore. Financial assistance to various communities stands at ₹2,320 crore. Sthree Shakti has been given ₹1,420 crore. Subsidy and free power for weaker sections has been allocated ₹600 crore. Welfare for auto drivers stands at ₹450 crore.
Health and Drinking Water
NTR Vaidya Seva has been provided ₹4,000 crore. Jal Jeevan Mission has also been allocated ₹4,000 crore. Swachh Bharat Mission will receive ₹1,037 crore.
Education and Youth Development
Scholarships have been allocated ₹3,836 crore. Samagra Shiksha has been allotted ₹2,946 crore. Higher education will receive ₹2,566 crore. Dokka Seethamma Mid Day Meal Scheme has provided ₹2,161 crore. Skill development has been allocated ₹1,232 crore. PM Schools for Rising India has received ₹707 crore. Youth and sports development has been allotted ₹438 crore.
Agriculture and Farmer Support
Annadata Sukhibhava has been allocated ₹6,600 crore. Rashtriya Krishi Vikas Yojana has been given ₹1,927 crore. Crop insurance has been allotted ₹250 crore. PM Krishi Sinchayee Yojana has received ₹190 crore. A price stabilisation fund of ₹500 crore has also been proposed.
The 2026–27 budget reflects a strategy that balances fiscal discipline with social welfare and infrastructure expansion. With targeted investments across sectors, the government aims to strengthen economic stability while pushing Andhra Pradesh toward sustained regional growth.
