The Andhra Pradesh government has unveiled its Budget 2026–27 with a clear and decisive shift toward infrastructure-led economic expansion, backed by fiscal prudence and long-term development planning. With total receipts and expenditure both pegged at ₹3.32 trillion, the Budget reflects a calibrated approach balancing aggressive capital investment with sustainable financial management.
Record-High Public Capital Expenditure
The centrepiece of the Budget is a historic ₹53,915 crore allocation toward public capital expenditure, marking one of the highest infrastructure outlays in the state’s history. The government has positioned infrastructure as a multiplier for private investment, employment generation, and productivity enhancement, moving beyond consumption-driven growth to asset creation.
Major allocations underline this intent:
- ₹13,934 crore for the energy sector, reinforcing Andhra Pradesh’s ambition to become a clean energy powerhouse.
- ₹13,546 crore for connectivity and logistics, spanning roads, ports, and airports to enhance trade flows and industrial efficiency.
- ₹6,000 crore for Amaravati, accelerating development of the capital city as a modern administrative and economic hub.
Additionally, significant funding has been earmarked for industrial corridors, MSMEs, and digital infrastructure, including initiatives such as Quantum Valley, aimed at attracting deep-tech industries and global investments.
Strong Fiscal Management
Even with the expanded capital outlay, the state has maintained fiscal discipline. The revenue deficit has been contained at 1.11% of GSDP, while the fiscal deficit stands at 3.84% and the primary deficit at 1.95%.
The state’s Gross State Domestic Product (GSDP) is projected to reach ₹19.75 trillion in FY27, positioning Andhra Pradesh among the faster growing regional economies. The fiscal indicators signal improving financial stability, which could further strengthen investor confidence.
Investment in Human Capital
The Budget underscores people centric growth alongside infrastructure development.
- ₹35,000 crore has been allocated to education, covering school and higher education reforms.
- Over ₹19,000 crore has been earmarked for healthcare, supporting hospital infrastructure, medical services, and public health initiatives.
Enhanced funding for scholarships, mid-day meals, and skill development programmes aims to build an industry ready workforce aligned with emerging sectors such as renewable energy, digital services, and advanced manufacturing.
Agriculture and Rural Resilience
Recognising agriculture’s central role in inclusive growth, the government has allocated over ₹9,900 crore for major irrigation projects (excluding Polavaram) and ₹6,105 crore for the Polavaram Project itself. Farmer income support schemes, crop insurance, and price stabilisation mechanisms remain integral to strengthening rural incomes and climate resilience.
Swarna Andhra @2047 Vision
The Budget aligns with the state’s long-term Swarna Andhra @2047 vision, which seeks to transform Andhra Pradesh into a high-income, globally competitive economy. By integrating infrastructure creation, human capital development, clean energy expansion, and fiscal responsibility, the 2026–27 Budget outlines a structured pathway toward sustainable and inclusive growth.
Overall, the fiscal blueprint signals a confident pivot toward investment-led development anchored in financial discipline and long-term strategic clarity.
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