The Union Budget this year marks a decisive shift from the old template of tax-heavy announcements to a policy-driven roadmap aimed at Viksit Bharat 2047. In many ways, the Budget document reads like those of developed economies, where budgets are less about annual tax tinkering and more about long-term structural reforms, cost efficiency and future-ready public expenditure.
For Andhra Pradesh, the Budget offers a mix of direct allocations, indirect gains and opportunity-based schemes that require proactive engagement by the state government. Directly, allocations for the State in the 2026-27 Budget are estimated at around Rs 5,600 crore. A significant portion of this is linked to Polavaram, accounting for about Rs 3,320 crore. Amaravati features prominently, with around Rs 780 crore earmarked for integrated urban development, drinking water and storage improvements, and road and bridge reconstruction in the capital region.
The proposed rare earth minerals corridor, covering Andhra Pradesh along with Odisha, Tamil Nadu and Kerala, is particularly significant given the State’s mineral potential and coastline-linked logistics advantages. Similarly, the proposed high-speed rail connectivity between Hyderabad and Chennai will pass through Andhra Pradesh, offering long-term economic and mobility benefits.
In the education and research space, institutions such as SRM Amaravati University, VR Siddhartha College and IIIT Sri City have been selected for Central research grants under departments such as atomic energy, strengthening the State’s higher education and innovation ecosystem. Additionally, under the 16th Finance Commission framework, Andhra Pradesh stands to benefit from a 41 per cent devolution from the divisible pool, which itself is substantial.
The container manufacturing scheme, with an outlay of Rs 10,000 crore, is one such opportunity. With existing container depots and port-linked infrastructure, Andhra Pradesh can position itself as a beneficiary. Of particular relevance is the allocation of Rs 20,000 crore over five years for carbon capture, utilisation and storage technologies across the power, steel and cement sectors.
In sum, this is a development-oriented, policy-heavy Budget that offers Andhra Pradesh adequate fiscal support and significant strategic opportunities. The real test, however, lies not in the announcements but in execution. Timely utilisation of funds, project readiness and close coordination with the Centre will determine how effectively the State converts this budgetary support into tangible growth outcomes.
K Narasimha Murthy
Former Adviser (Financial) to Government of Andhra Pradesh, Banking and Financial Expert