AP Budget 2026 27 Highlights: The Andhra Pradesh government has unveiled an ambitious budget of over Rs 3.32 lakh crore for the financial year 2026-27, marking a Rs 10,000 crore increase from the previous year.
Finance Minister Payyavula Keshav on Saturday, 14 February, presented the state budget for 2026–27 in the Assembly, proposing a total expenditure of ₹3,32,205 crore and outlining a calibrated fiscal consolidation path with higher capital spending, debt rationalisation and economic revival.
Quick highlights (in 60 seconds)
- Total proposed expenditure (BE 2026–27): ₹3,32,205 crore.
- Revenue expenditure: ₹2,56,143 crore; Capital expenditure: ₹53,915 crore.
- Revenue deficit: ~₹22,002 crore (~1.11% of GSDP); Fiscal deficit: ~₹75,868 crore (~3.84% of GSDP).
- Big infra-growth buckets include Energy ₹13,934 cr, Logistics & Connectivity ₹13,546 cr, Amaravati ₹6,000 cr.
- Key welfare allocations shown include NTR Bharosa ₹27,719 cr and Deepam 2.0 ₹2,320 cr.
- Education-led “human capital” headline: Thalliki Vandanam ₹9,668 cr (as shown in the Budget-at-a-Glance brief).
Key Financial Indicators
Revenue expenditure accounts for ₹2,56,143 crore while capital expenditure is ₹53,915 crore. This represents a massive leap in infrastructure investment. Capital outlay is pegged at ₹53,915.38 crore in 2026–27, compared to ₹39,497.56 crore in the 2025–26 Revised Estimates — an increase of ₹14,417.82 crore.
Fiscal Health Improvements
The budget demonstrates improved fiscal management. The revenue deficit is projected to fall sharply from ₹41,118.36 crore (RE 2025–26) to ₹22,002.50 crore in 2026–27. Similarly, the fiscal deficit is estimated to decline from ₹80,567.47 crore (RE) to ₹75,868.09 crore.
Major Infrastructure Projects
Amaravati Capital Development
The capital project of Amaravati got a significant financial allocation by the Andhra Pradesh government as ₹6000 crores were allocated to the same. This marks a renewed commitment to developing the state capital with world-class infrastructure.
Polavaram Project Funding
The Polavaram project was allocated ₹6105 crore in accordance with the financial demands. This critical irrigation project continues to receive priority funding to ensure timely completion.
Water Resources and Irrigation
Budget allocations for 2026-27 include ₹18,224 crore for the Water Resources Department. Major irrigation projects have been allotted a total of ₹9,906 crore.
Transportation Infrastructure
Roads, ports, and airports have been given ₹13,546 crore. This significant allocation aims to improve connectivity and logistics across the state.
Game-Changing Regional Development Initiatives
Rayalaseema Global Horticulture Hub
One of the most ambitious projects in the budget, a massive project outlay of ₹30,000 crore to transform Rayalaseema into a national and international hub for horticulture. The plan includes export promotion, food processing units, and the establishment of cold chain infrastructure.
The Rayalaseema Integrated Development Plan includes expansion of horticulture area from 8.41 lakh hectares to 14.41 lakh hectares by 2030 and assured water through irrigation and micro-irrigation projects, and improvement of road connectivity to enable access to global markets.
It will generate nearly nine lakh direct employment opportunities across farm and non-farm sectors.
Three Economic Regions Strategy
The government has decided to develop Visakhapatnam, Amaravati, and Tirupati as major economic growth centres. Visakhapatnam, Amaravati, and Tirupati will be developed as Special Economic Regions with a focus on industry, IT, and services.
The government has also announced ₹28,000 crore for the Visakhapatnam Economic Region.
AP Wealth Fund Initiative
A dedicated Wealth Fund will be established with an initial corpus of ₹100 crore to strengthen the State’s financial resources. The state proposes to invest in projects across the country through this fund and has invited private investors to partner in the initiative.
Welfare Schemes and Social Security
NTR Bharosa (Pensions)
NTR Bharosa has been allocated ₹27,719 crore. This massive allocation ensures pension benefits for millions of beneficiaries across the state.
Thalliki Vandanam (Education Support)
The prestigious Thalliki Vandanam project got nearly Rs 10,000 crore allocation. Thalliki Vandanam, introduced in 2025-26 under the Super Six programme, provides ₹15,000 per child annually and has benefited 67.27 lakh students.
Healthcare Initiatives
NTR Vaidya Seva has been provided ₹4,000 crore. The medical and health sector will receive over ₹19,000 crore.
Jal Jeevan Mission
Jal Jeevan Mission has also been allocated ₹4,000 crore. This ensures safe drinking water access for rural households across the state.
Other Key Welfare Programs
Deepam 2.0 has been allotted ₹2,601 crore.
Sthree Shakti has been given ₹1,420 crore.
Subsidy and free power for weaker sections has been allocated ₹600 crore.
Agriculture and Farmer Welfare
Comprehensive Agriculture Budget
Budget allocations for 2026-27 include ₹13,598 crore for the Agriculture and Allied Departments.
Annadata Sukhibhava Scheme
Annadata Sukhibhava has been allocated ₹6,600 crore. This flagship scheme directly supports farmers with input subsidies and financial assistance.
Price Stabilisation Fund
₹500 crore for the Price Stabilisation Fund. Although we initially allocated ₹300 crore to the Fund, we spent more than ₹1,200 crore within a single year to support farmers, including Totapuri mango growers, onion farmers, cocoa cultivators, and tobacco farmers.
Other Agriculture Schemes
Rashtriya Krishi Vikas Yojana has been given ₹1,927 crore.
Crop insurance has been allotted ₹250 crore.
Education and Skill Development
School Education
The government is going to spend heavily on government education, also considering that 32,000 + crore is allocated to the same. Budget allocations for 2026-27 include ₹32,308 crore for the School Education Department, with ₹1,500 crore earmarked for public school infrastructure.
Higher Education and Scholarships
Higher education will receive ₹2,566 crore.
Scholarships have been allocated ₹3,836 crore.
Samagra Shiksha has been allotted ₹2,946 crore.
Mid-Day Meal Scheme
Dokka Seethamma Mid Day Meal Scheme has provided ₹2,161 crore.
Skill Development
₹1,232 crore for the Skill Development and Training Department.
Economic Growth and Performance
He highlighted a remarkable economic turnaround with 11.75% growth in 2024-25 and major allocations for agriculture, education, and water resources. The state’s economy continues to expand at a robust pace, with GSDP projected to reach ₹19.75 trillion in 2026–27, underscoring Andhra Pradesh’s position as one of India’s faster-growing regional economies.
VB-G RAMG Scheme
An allocation of ₹8,365 crore has been earmarked under this scheme to provide targeted benefits to socially and economically disadvantaged sections.
Housing and Urban Development
Housing has received ₹5,451 crore.
Key Takeaways
This budget represents a fundamental shift in Andhra Pradesh’s economic strategy. The Finance Minister said the government’s twin priorities are restoring financial stability and accelerating growth through higher capital formation. The coming fiscal year, he asserted, will mark a transition “from repair to renewal” in Andhra Pradesh’s public finances.
The budget balances welfare commitments with aggressive infrastructure investment, positioning the state for sustainable long-term growth while ensuring no section of society is left behind.
FAQ
Q1) What is the total AP Budget 2026–27 size?
₹3,32,205 crore (proposed expenditure).
Q2) What are the deficit targets in AP Budget 2026–27?
Revenue deficit ~₹22,002 crore (~1.11% of GSDP) and fiscal deficit ~₹75,868 crore (~3.84% of GSDP).
Q3) How much is allocated for Amaravati in AP Budget 2026–27?
₹6,000 crore is shown under “Amaravati – The People’s Capital” in the official Budget brief.
