VIJAYAWADA: The State government has presented the 2025-26 budget, prioritising healthcare, infrastructure, and welfare while addressing financial challenges from the previous administration. Finance Minister Payyavula Keshav tabled the Rs 3.22 lakh crore budget in the State Legislative Assembly, marking the NDA government’s first full-year financial plan under Chief Minister N Chandrababu Naidu.
The health sector received Rs 19,264.93 crore, accounting for 5.98% of the total budget. This represents a 4% increase from 2024-25 and a 29% rise from 2023-24, reinforcing the government’s focus on strengthening healthcare infrastructure. However, despite higher allocations, its share in the overall budget has slightly declined from 6.26% in 2024-25 to 5.98% in 2025-26, reflecting a faster growth in other sectors.
In a major healthcare reform, Health Minister Y Satya Kumar Yadav announced a Rs 25 lakh health insurance scheme for all residents, set to launch in the next financial year. Calling the budget a “responsible step towards rebuilding Andhra Pradesh,” he emphasised its focus on fiscal discipline and welfare.
“The 2025-26 budget is our roadmap to correcting past financial mismanagement and rebuilding the State. Our goal is a Healthy, Wealthy, and Happy Andhra Pradesh,” said Yadav.
The budget breakdown for Health, Medical, and Family Welfare includes Rs 16,558.97 crore for revenue and Rs 2,705.96 crore for capital expenditure. The State government also allocated Rs 251 crore for Upgradation of secondary health hospitals, Rs 233.45 crore for sub-centres of CHCs and PHCs, Rs 189.44 crore for 108 ambulances, Rs 170.52 crore for AYUSH, Rs 149.95 crore for PG seats in medical colleges, Rs 149.87 crore for PM Matru Vandana Yojana, Rs 128.49 crore for 104 services, and Rs 111.21 crore for diagnostic infrastructure in PHCs. Health Minister Yadav highlighted the government’s commitment to modernising medical infrastructure, enhancing emergency care, and ensuring quality healthcare access across urban and rural areas. “Today’s budget balances welfare and development. The increased capital allocation signals our commitment to transforming AP into Swarnandhra Pradesh by 2047,” he added.