Major allocations in the budget include ₹47,456 crore for Backwards Class (BC) Welfare, followed by ₹31,805 crore for school education, ₹27,518 crore for NTR Bharosa pensions, ₹20,281 crore for Scheduled Caste (SC) welfare, ₹9,264 crore for medical and health departments, ₹18,847 crore for Panchayat Raj department, ₹18,019 crore for irrigation, and ₹13,487 crore for agriculture.
Published Feb 28, 2025 | 2:45 PM ⚊ Updated Feb 28, 2025 | 3:26 PM
Andhra Pradesh Finance Minister Payyavula Keshav (X)
Synopsis: The Andhra Pradesh government presented a ₹3,22,359 crore budget in the state Assembly for the financial year 2025-26. Presenting the budget, the finance minister also announced several new schemes for the people in the state. He spent most of his time praising Naidu for his visionary leadership and slamming the previous YSRCP government for the financial ruin that it brought upon the state.
Andhra Pradesh Finance Minister Payyavula Keshav on Friday, 28 February, presented a ₹3,22,359 crore budget in the state Assembly for the financial year 2025-26, with revenue expenditure estimated at ₹2,51,162 crore and capital expenditure at ₹40,635 crore.
The estimated revenue deficit will be around ₹33,185 crore, and the fiscal deficit will be about ₹79,926 crore. The revenue deficit will be around 1.82 percent, and the fiscal deficit will be around 4.38 percent of Gross State Domestic Product (GSDP).
Major allocations in the budget include ₹47,456 crore for Backwards Class (BC) Welfare, followed by ₹31,805 crore for school education, ₹27,518 crore for NTR Bharosa pensions, ₹20,281 crore for Scheduled Caste (SC) welfare, ₹9,264 crore for medical and health departments, ₹18,847 crore for Panchayat Raj department, ₹18,019 crore for irrigation, and ₹13,487 crore for agriculture.
Amaravati, Polavaram, and Banakacherla projects, which are very close to Chief Minister N Chandrababu Naidu’s heart, also found their names in the budget.
The Polavaram Project is expected to change the fortunes of the Rayalaseema region and North Coastal districts and make Andhra Pradesh a water-secure and drought-free state.
The government has secured ₹12,157 crore from the Union government to support the first phase of the project. The project has progressed 73 percent so far and is scheduled to be completed by 2027.
Then there’s Amaravati, Naidu’s dream project. The government said in the budget that financing for the project has been secured with lending from the World Bank, Asian Development Bank, and Housing and Urban Development Corporation Limited (HUDCO). With this, Amaravati has proven to be a self-financing capital city project without state budget assistance.
Keshav, while presenting the budget estimates in the Assembly, referred to the Banakacherla project. Terming the Banakacherla river linking project as a mega Polavaram, he said the state was exploring financing options for the “multi-billion rupee” project.
This project will transfer 200 thousand million cubic feet (TMC) of floodwater from the Godavari River to the Banakacherla head regulator through a link canal and fulfill water demand in the drought-prone Rayalaseema region and other water-shortage districts of Andhra Pradesh.
Presenting the budget, Keshav also announced several new schemes for the people in the state.
The finance minister spent most of his time praising Naidu for his visionary leadership and slamming the previous YSRCP government for the financial ruin that it brought upon the state.
He substantiated his argument that YSRCP was responsible for the state’s finances being in shambles with a report from NITI Aayog. He said: “The NITI Aayog also revealed in its report that Andhra Pradesh’s debt sustainability has reached zero. This means that ours was the only state which was no longer in a position to take on any more loans.”
Keshav dwelt at length on the financial destruction caused to the state by the previous YSRCP government. He said: “Presenting the year’s budget had turned out to be a highly complex task because the previous regime created financial chaos in every department. As a result, a great deal of effort was required to understand the scale of mismanagement of finances and set things right.”
He also lashed out at the erstwhile YSRCP government, saying: “For five years, the previous regime created an environment of fear and insecurity, where the common man could not live peacefully. The legacy of the past administration can only be described as neglect, destruction, and the ruin of future generations.”
He said that since 2019, the previous regime put a halt to everything. From a path of development, the state was put on the road to suffering. Democratic institutions were damaged. Industries were chased away. Youth were disoriented. The economy was destroyed. The focus of the previous government was on ‘regime revenge’ and ‘silencing of opposition’ rather than on the welfare of the people.”
He said that the NDA government understood the deeper meaning of the change brought about by the people in 2024. “People thought not just about their own lives but also about the future of their children and entrusted the responsibility to us.”
“Similar to the past, in 2024 also, the chief minister gave a direction for the state with his vision document Swarna Andhra @ 2047, which serves as a roadmap for the development of the state. The target is to consistently achieve a GSDP growth rate of over 15 percent, increase per capita income, eradicate poverty, and take the fruits of development to the most underprivileged sections,” he said.
He said that with the support of Prime Minister Narendra Modi, the state had put the Polavaram Irrigation Project and Amaravati Capital City Project back on track.
Under the Special Assistance to States for Capital Investments, the expenditure in 2023-24 was just ₹4,090 crore. “In 2024-25, the allocation to Andhra Pradesh has substantially increased to ₹7,200 crore. This is likely to increase further by 31 March 2025,” he said.
He said that economic growth is back on track.
“According to the First Advance Estimates for 2024-25, GSDP has grown at a rate of 12.94 percent. All key sectors have registered a strong performance — agriculture and allied activities have grown at 15.86 percent, industries at 6.71 percent, and services at 11.70 percent. The state has fulfilled the following important manifesto promises in a short span of time since June 2024, including the enhancement of NTR Bharosa Pensions to ₹4,000 per month, the opening of 204 Anna Canteens for the poor, the provision of free cylinders under the Deepam 2.0 scheme, and increased honorariums for Archakas, Imams, and Muazzins,” he said.
Keshav said the state has initiated the process for the recruitment of 16,347 teachers through DSCs.
He said: “The budget is not a mere allocation document, but it is a reflection of people’s hopes, aspirations, development, and welfare. The exercise is to balance these with the available resources. The previous regime had completely abandoned this principle, which destroyed the state’s economy. The budget for 2024-25 laid the corrective foundation for the state.”
(Edited by Muhammed Fazil.)
