Andhra Pradesh Finance Minister Payyavula Keshav presented the state’s annual budget for 2025-26 in the legislative assembly with a total outlay of ₹3.22 lakh crore. This marks the first full-fledged budget of the N. Chandrababu Naidu-led Telugu Desam Party (TDP) government since it came to power in June 2024. In the previous financial year, the state had presented only a vote-on-account budget.
The budget focuses heavily on welfare schemes, agriculture, education, health, and infrastructure while addressing financial challenges inherited from the previous government.
Budget Highlights: Revenue and Expenditure
- Total Budget Outlay: ₹3.22 lakh crore
- Revenue Expenditure: ₹2.51 lakh crore
- Capital Expenditure: ₹40,635 crore
- Revenue Deficit: ₹33,185 crore (1.82% of the Gross State Domestic Product – GSDP)
- Fiscal Deficit: ₹79,926 crore (4.38% of the GSDP)
Sector-Wise Allocations
| Sector | Budget Allocation |
|---|---|
| Agriculture | ₹48,000 crore |
| BC Welfare | ₹47,456 crore |
| School Education | ₹31,805 crore |
| Health & Family Welfare | ₹19,264 crore |
| Panchayat Raj & Rural Development | ₹18,847 crore |
Key Welfare Schemes Announced
The budget has allocated funds for only two out of the six “Super Six” promises made by the TDP-led alliance before the elections:
1. Thalliki Vandanam (Modified Amma Vodi Scheme)
- Budget Allocation: ₹9,407 crore
- Objective: Financial assistance to mothers for their children’s education
- Details:
- ₹15,000 per child (no limit on the number of school-going children)
- Direct bank transfer to mothers’ accounts
- Implementation from May 2025
2. Annadata Sukhibhava (Modified YSR Rythu Bharosa)
- Objective: Financial support for farmers before each agricultural season
- Details:
- ₹20,000 per year per farmer
- ₹14,000 from the state government in three installments
- ₹6,000 from the Central government’s PM-Kisan scheme
However, the budget did not include allocations for:
- Free bus travel for women in RTC buses
- Unemployment allowance of ₹3,000 per month for jobless youth
Other Welfare Initiatives Implemented Since June 2024
Finance Minister Payyavula Keshav highlighted that several “Super Six” promises have already been fulfilled:
- NTR Bharosa Pensions: Increased from ₹3,000 to ₹4,000 per month
- Reopening of 204 Anna Canteens: Providing subsidized meals for the poor
- Deepam 2.0 Scheme: Three free LPG cylinders per year
- Higher Honorariums: Increased financial aid for Archakas (temple priests), Imams, and Muazzins
- Recruitment of 16,347 Teachers: Process initiated through district selection committees
Major Infrastructure and Development Projects
1. Amaravati Capital City Development
- Budget Allocation: ₹6,000 crore
- Objective: Develop Amaravati as the “People’s Capital”
2. Polavaram Irrigation Project
- Budget Allocation: ₹6,705 crore
- Progress:
- 73% of the project completed
- ₹12,157 crore secured from the Central government for Phase 1
- Scheduled for completion by 2027
New Initiatives in the Budget
1. Increased Financial Relief for Fishermen
- Relief Amount Doubled: From ₹10,000 to ₹20,000 during the fishing ban period
2. Health Insurance Scheme
- Coverage: ₹25 lakh per family
- Implementation: From the next financial year
3. Free Electricity for Government Schools
- To reduce financial burden on schools and improve educational infrastructure
4. Packaged Fine Rice for Mid-Day Meal Scheme
- Beneficiaries: Government schools and social welfare hostels
- Implementation: Starting from the next academic year
5. Relaunch of “Adarana” Scheme
- Objective: Support artisans, craftsmen, and traditional workers
- Details:
- Provide modern toolkits and gadgets to improve productivity and income
6. Viability Gap Funding (VGF) for Public-Private Partnership Projects
- Funding Assistance: Up to 20% of project cost
- Budget Allocation: ₹2,000 crore
7. Financial Independence for Municipalities
- From April 1, 2025, municipalities will be delinked from the state government’s payment system
- Objective: Restore local self-governance and improve efficiency
Government’s Justification for Budget Decisions
Finance Minister Payyavula Keshav emphasized that the previous YSRCP government had created financial mismanagement in several departments, making it challenging to restructure the economy. He described the budget planning process as highly complex due to the existing fiscal deficit and liabilities.
The Andhra Pradesh Budget 2025-26 prioritizes welfare schemes, agriculture, education, and infrastructure, while also tackling financial challenges from the previous administration. Though the government has allocated funds for Thalliki Vandanam and Annadata Sukhibhava, other “Super Six” welfare promises like free bus travel for women and unemployment allowance remain unaddressed.
The budget also focuses on reviving Amaravati as the state capital, completing the Polavaram project, and providing new benefits to farmers, artisans, and fishermen. With new initiatives in healthcare, education, and local governance, the government aims to strengthen the state’s economy while addressing past financial setbacks.
