Amaravati, February 28, 2025: The Andhra Pradesh government, led by Chief Minister Nara Chandrababu Naidu, unveiled an ambitious state budget of Rs 3.22 lakh crore for the financial year 2025-26, prioritizing education, healthcare, infrastructure, and social welfare schemes. The budget presentation was made by Finance Minister Payyavula Keshav in the Andhra Pradesh Assembly on Friday.
Key Budget Allocations and Highlights
The budget for FY 2025-26 consists of an estimated revenue expenditure of Rs 2.51 lakh crore, with a substantial capital expenditure set at Rs 40,635 crore. Minister Keshav outlined the financial health, noting that the revenue deficit stands at approximately Rs 33,185 crore (1.82% of GSDP), while the fiscal deficit is projected at Rs 79,926 crore (4.38% of GSDP).Education: Launch of "Talliki Vandanam" Scheme
In line with the TDP-led NDA government's Super Six election manifesto promises, Minister Keshav proudly announced the "Talliki Vandanam" scheme, which aims to provide financial support of Rs 15,000 to students from classes I to XII studying in both government and private schools. For school education specifically, the government allocated Rs 31,805 crore, underscoring a clear emphasis on educational reform and inclusivity.Social Welfare Commitments
Social welfare remained high on the government's agenda, with the Backward Classes (BC) component receiving Rs 47,456 crore, signifying a robust commitment toward upliftment and inclusion. Additionally, Rs 20,281 crore was earmarked for Scheduled Castes (SC), while minority welfare received Rs 5,434 crore.Healthcare Transformation with New Insurance Scheme
Healthcare also gained significant attention, with the Health, Medical, and Family Welfare Department allocated Rs 19,264 crore. The Finance Minister revealed plans to introduce an insurance-based health coverage scheme providing up to Rs 25 lakh per family, significantly enhancing medical accessibility and affordability across the state.Rural Development and Infrastructure Enhancements
Deputy Chief Minister Pawan Kalyan, holding the Panchayati Raj & Rural Development portfolio, received an allocation of Rs 18,847 crore, emphasizing rural infrastructure and empowerment. The Department of Municipal Administration & Urban Development secured Rs 13,862 crore, highlighting the success of Amaravati as a self-sustaining capital city. The city has managed to secure external funding independently through the World Bank, Asian Development Bank, and HUDCO, thus reducing financial dependence on the state.Energy Sector and Green Hydrogen Initiative
The Energy Department was allocated Rs 13,600 crore. According to Minister Keshav, the energy sector in Andhra Pradesh is undergoing a transformative revival, aiming to position the state as a future green hydrogen hub, aligning with global sustainability goals.Infrastructure and Security
Additional significant budgetary allocations include:- Transport, Roads, and Buildings: Rs 8,785 crore
- Home Department: Rs 8,570 crore
Overcoming Previous Financial Challenges
Highlighting the challenges faced due to past fiscal mismanagement, Minister Keshav stated, "We are presenting this budget against the backdrop of the financial destruction caused by the previous regime." He referred explicitly to the erstwhile YSRCP government, alleging widespread fiscal chaos inherited by the present administration.Reiterating optimism and confidence, Minister Keshav added, "Under the visionary leadership of Chief Minister Nara Chandrababu Naidu, Andhra Pradesh is ushering in a new era of governance aimed at building a healthy, wealthy, and happy society. Our ambitious vision for SwarnaAndhra 2047 is both challenging and attainable."
Agriculture Sector Budget
Complementing the primary budget presentation, Agriculture Minister K Atchennaidu separately presented an Agriculture Budget amounting to Rs 48,341 crore for FY 2025-26, emphasizing agricultural growth, farmer welfare, and rural economic enhancement.The Andhra Pradesh government’s FY 2025-26 budget clearly demonstrates its strategic focus on comprehensive development, public welfare, and financial prudence, setting an ambitious roadmap for sustained growth and prosperity.
