A.P. govt presents ₹3.2 lakh crore Budget for 2025-26

Andhra Pradesh state government presents ₹3,22,359 crore budget for 2025-26, focusing on key promises and development projects.

The Andhra Pradesh state government, on Friday (February 28, 2025), presented the annual budget for the financial year 2025-26 with a total outlay of ₹3,22,359 crore. Of this, revenue expenditure is estimated at ₹2,51,162 crore, and capital expenditure at ₹40,635 crore.

Click here for our Live Coverage of the Andhra Pradesh Budget presentation

Talliki Vandanam, Annadata sukhibhava,  the two  promises made under Super Six, key electoral promises, found their way into the Budget. The government made a mention of  Godavari-Banakacherla, an ambitious ‘intra-linking of rivers’ initiative. But, there was no specific mention of funds allocated to it. However, allocation of ₹6,705 crore for Polavaram irrigation project was made in the budget. The government for the first time announced ₹10 crore for Telugu language development and free power to schools. A viability gap funding (VGF) scheme for Capital expenditure was also announced in the budget.

Presenting the budget in Andhra Pradesh Assembly on Friday, Andhra Pradesh Finance Minister Payyavula Keshav said that the estimated revenue deficit is around Rs. 33,185 crore and the fiscal deficit is around ₹79,926 crore. The revenue deficit will be around 1.82 per cent  and fiscal deficit will be around 4.38 per cent of Gross State Domestic Product (GSDP).

The revised estimate for revenue expenditure for financial year (FY) 2024-25 is ₹2,24,342 crore, and for capital expenditure it is ₹24,072 crore. The revenue deficit for 2024-25 is around ₹48,311 croгe, whereas the fiscal deficit is around ₹73,362 crore. The revenue deficit is 3.01% and fiscal deficit is 4.57 per cent of GSDP, he said adding that the finance accounts finalized by the Accountant General of Andhra Pradesh show a revenue deficit of ₹38,682 crore, and a fiscal deficit of ₹62,719 crore, which was 2.72 per cent and 4.41 per cent of the GSDP respectively, for FY 2023-24, he said.

“Economic growth is back on track. As per the First Advance Estimates for 2024-25, (the) GSDP has grown at a rate of 12.94 per cent. All key sectors have registered a strong performance - agriculture and allied activities have grown at 15.86 per cent, industries at 6.71 per cent, and services at 11.70 per cent,” Mr. Keshav said.

To overcome the resource constraints, the government  has planned innovatively to take up large capital expenditure projects. I am glad to announce the innovative Viability Cap Funding Scheme for Public Private Partnership (PPP) projects for up to 20 per cent  of the project cost to any Department, beyond the existing budgetary allocation.” I propose to establish a corpus of ₹2,000 crore dedicated for the VGF scheme,” he said.