The Andhra Pradesh Budget for 2025-26 unveils a grand financial mosaic, blending fiscal prudence with ambitious economic, and welfare-driven aspirations. With an outlay of Rs 3,22,359 crore, this Budget is not merely a ledger of income and expenditure but an intricate roadmap towards holistic development, fostering inclusive growth while keeping macroeconomic stability intact.
The fiscal design balances economic expansion and deficit management, reflecting a pragmatic yet visionary governance approach. The revenue deficit of Rs 33,185 crore (1.82% of GSDP) and the fiscal deficit of Rs 79,926 crore (4.38% of GSDP) underscore a measured fiscal strategy, acknowledging structural constraints while sustaining a robust development trajectory. The projected 12.94% GSDP growth, with agriculture leading at 15.86%, services at 11.70%, and industry at 6.71%, signals resilience, positioning Andhra Pradesh as a key contributor to the national growth narrative.
Social welfare emerges as a pivotal axis, channelling economic dividends into tangible uplift measures. The unprecedented Rs 47,456 crore allocation for Backward Classes welfare underscores an unwavering commitment to socio-economic inclusion. Education, as a transformative force, secures Rs 31,805 crore, fortifying school infrastructure and fostering human capital. The meticulous social justice framework extends further, with Rs 20,281 crore earmarked for Scheduled Castes Welfare, Rs 8,159 crore for Scheduled Tribes welfare, and Rs 5,434 crore for minority welfare, ensuring equitable resource distribution. Gender parity remains a focal point, reflecting in the Rs 4,332 crore allocation for women and child welfare, reinforcing support mechanisms for vulnerable demographics.
These fiscal measures transcend mere allocations; they embody a paradigm shift towards empowerment-driven governance.
Agriculture, the economic backbone of the State, receives a formidable Rs 48,000 crore infusion, reaffirming its primacy in the State’s economic calculus. The Rs 6,300 crore Annadata Sukhibhava scheme fortifies financial resilience among farmers, while the Rs 13,487 crore allocation to agriculture and allied sectors bolsters productivity, technological adoption, and market linkages. Water resource management remains integral to agrarian sustainability with the Rs 11,314 crore investment in irrigation, and the Rs 2,800 crore outlay for the Jal Jeevan Mission, ensuring rural water security. This strategic framework mitigates climate vulnerabilities and strengthens agricultural sustainability, aligning with long-term food security imperatives.
Infrastructure development assumes a catalytic role, facilitating economic dynamism and industrial expansion. The Rs 6,000 crore allocation for Amaravati underpins a vision for urban agglomeration, fostering economic clusters and investment corridors. The Rs 6,705 crore investment on the Polavaram irrigation project amplifies agrarian resilience, while the ambitious Godavari-Banakacherla river linking initiative marks a futuristic water conservation approach. Transport infrastructure receives an Rs 8,785 crore boost, enhancing connectivity, trade facilitation, and logistics efficiency. These initiatives reflect a nuanced understanding of infrastructure as a growth enabler, with multiplier effects across sectors.
Sustainability assumes centrality in this fiscal roadmap, with a pioneering Rs 13,600 crore allocation to the energy sector, emphasising green hydrogen and renewable energy proliferation. This commitment aligns with global decarbonisation trends, positioning Andhra Pradesh as a frontrunner in the green economy. The
Rs 2,000 crore viability gap funding provision stimulates public-private partnership, mitigating financial constraints in critical sectors. Cultural heritage preservation seamlessly integrates into this framework, with Rs 10 crore earmarked for Telugu language promotion, symbolising a harmonious blend of tradition and digital modernisation.
Urbanisation is redefined through a forward-looking
Rs 2,000 crore investment in the Smart Cities Mission, underscoring digital infrastructure, sustainable mobility, and urban resilience. These fiscal interventions are not isolated policy measures but constitute an overarching vision for a technologically empowered, economically robust future. The commitment to Swarna Andhra
@2047 encapsulates a long term development trajectory, converging economic resilience, social equity, and infrastructural innovation into a cohesive governance model.
This Budget, therefore, transcends conventional fiscal paradigms. It is not a mere ledger of allocations but a strategic construct shaping Andhra Pradesh’s economic destiny. By harmonising fiscal discipline with transformative investments, it constructs a resilient economic edifice, ensuring prosperity that resonates beyond immediate financial cycles. In an era of global economic flux, this financial blueprint positions the State as an adaptive, forward-thinking entity, recalibrating development narratives with precision and foresight.
Andhra Pradesh’s Budget for 2025-26 is not just a financial exercise; it is an articulation of a grand vision, a meticulously crafted symphony of economic progress, social upliftment, and infrastructural ambition, redefining the contours of growth for generations to come.
Dr Arja Srikanth, Former Special Secretary, Government of Andhra Pradesh