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Andhra Pradesh Unveils Rs 3.32 Lakh Crore Budget With Wealth Fund Plan

The financial blueprint sets a development-plus-welfare course under tight deficit targets.

Overview

  • Finance minister Payyavula Keshav presented a 2026–27 outlay of about Rs 3.32 lakh crore, projecting a revenue deficit of Rs 22,002 crore (1.11% of GSDP) and a fiscal deficit of Rs 75,868 crore (3.84%), with GSDP estimated at Rs 19.75 lakh crore.
  • The government proposed an Andhra Pradesh Wealth Fund seeded with Rs 100 crore, described as a long-term wealth-creation vehicle with plans to invite private equity participation.
  • Social-sector spending features prominently, including Rs 32,308 crore for school education and Rs 19,306 crore for health, alongside major welfare and rural development allocations.
  • Regional development plans include proposals of nearly Rs 28,000 crore for the Visakhapatnam Economic Region, support for Amaravati’s build-out (about Rs 6,000 crore) and funding for the Polavaram project (about Rs 6,105 crore).
  • Keshav said interest rates were renegotiated on Rs 43,298 crore of high-cost loans, yielding annual savings of about Rs 327 crore, as industry group CII-AP welcomed the budget’s balance and the YSRCP accused the government of fudging figures and omitting mandatory comparisons.