Andhra Pradesh presents Rs 3.32 lakh crore Budget for 2026–27 with focus on growth and welfare

Hyderabad: Andhra Pradesh finance minister, Payyavula Keshav on Saturday in the state assembly has presented the state’s budget for the financial year 2026-27, with a total outlay of Rs. 3,32,205 crore, with revenue expenditure estimated at Rs. 2,56,143 crore, and capital expenditure at Rs. 53,915 crore. The estimated revenue deficit is around Rs. 22,002 crore and the fiscal deficit is around Rs. 75,868 crore. The revenue deficit will be around 1.11 % and fiscal deficit will be around 3.84 % of GSDP.

A significant share of the capital push is being channelled into future-facing sectors. The energy sector alone has been allocated Rs 13,934 crore, reinforcing Andhra Pradesh’s ambition to become a clean energy powerhouse. Connectivity and logistics - covering roads, ports and airports - will receive Rs 13,546 crore, strengthening supply chains and export competitiveness. The development of Amaravati has been backed with Rs 6,000 crore, alongside major funding for industrial promotion, MSMEs and digital infrastructure including the Quantum Valley initiative. Together, these investments are aimed at positioning the state as a hub for advanced manufacturing, deep-tech industries and global trade flows.

At the same time, the state’s economy continues to expand at a robust pace, with GSDP projected to reach Rs 19.75 lakh crore in 2026–27, underscoring Andhra Pradesh’s position as one of India’s faster-growing regional economies.

Nearly Rs 35,000 crore has been earmarked for school and general education, while the medical and health sector will receive over Rs 19,000 crore. Significant funding has also been provided for scholarships, mid-day meals, higher education and skill development programmes, creating a pipeline of industry-ready talent. The government’s approach links social investment directly with economic competitiveness, ensuring that Andhra Pradesh’s workforce is prepared for emerging sectors such as clean energy, digital services and advanced manufacturing.

Recognising the central role of agriculture in inclusive development, the 2026–27 Budget channelled large resources into irrigation, farmer income support and climate resilience. Over Rs 9,900 crore has been allocated for major irrigation projects outside Polavaram, while the Polavaram Project itself received Rs 6,105 crore. Large allocations have been made for NTR Bharosa and other social security schemes, housing programmes, healthcare missions and women-centric economic initiatives.

The finance minister said that the 2026–27 Budget aligns closely with the state’s long-term Swarna Andhra @2047 vision, which aims to transform Andhra Pradesh into a high-income, globally competitive economy by India’s centenary year of independence. “The strategy rests on infrastructure-led wealth creation, deep-tech adoption, world-class logistics, human capital excellence, sustainable agriculture and clean energy leadership. Each major spending decision in the Budget has been mapped to these long-term goals, signalling policy continuity and strategic clarity for investors and development partners,” he said.

Free Bus travel extended to men with disabilities under “Indra Dhanassu”

In the budget the Government of Andhra Pradesh has also announced that men with disabilities will soon be eligible for free bus travel under the newly launched “Indra Dhanassu” programme.

Government is already implementing a free bus scheme for women. Presenting the 2026–27 Budget in the Andhra Pradesh Legislative Assembly, Finance Minister Payyavula Keshav said the initiative has been introduced under the leadership of Chief Minister Chandrababu Naidu to strengthen welfare measures for persons with disabilities across the state.

Free bus travel for men with disabilities has been positioned as a key mobility reform aimed at enhancing access to employment, education, healthcare and public services. The move is expected to ease financial burdens on families and ensure greater social participation.

Under “Indra Dhanassu”, the government has also proposed, revival of key subsidy schemes, dedicated sports training programmes, housing support for persons with disabilities, establishment of a special degree college for persons with hearing impairment, construction of dedicated buildings for the differently abled.

The Finance Minister stated that necessary budgetary allocations have been made in the 2026–27 financial year to back these initiatives, describing the Budget as one that combines welfare with long-term development.