Andhra Pradesh's 2026-27 Budget Earns Praise for Growth and Fiscal Prudence
In Vijayawada, the state budget for the fiscal year 2026-27 has been lauded as a growth-oriented blueprint by Lanka Dinakar, chairman of the 20-Point Programme and a noted fiscal affairs expert. Dinakar commended the finance minister for crafting a fiscally responsible budget that aligns with national priorities, emphasizing its role in advancing both state and national development agendas.
Budget Reflects Partnership in Viksit Bharat and Swarna Andhra Pradesh Vision
Speaking to the media at the secretariat on Saturday, Dinakar highlighted that this budget embodies the spirit of partnership in the Viksit Bharat initiative while steering Andhra Pradesh toward the realization of Swarna Andhra Pradesh. He stated, "This budget reflects the spirit of partnership in Viksit Bharat while steering the state towards the realisation of Swarna Andhra Pradesh." The budget provides a clear roadmap for critical areas such as irrigation expansion, industrial growth, and horticulture development across all regions, including Uttarandhra, Rayalaseema, and Coastal Andhra.
Key Allocations and Welfare Programs
The total outlay of Rs 3.32 lakh crore balances development and welfare equally. Dinakar detailed several significant allocations:
- Under the VBG–Ram G programme, Rs 8,365 crore will be mobilized for rural asset creation, with a 40% state share and 60% central share, focusing on durable infrastructure and employment generation in villages.
- Rs 9,668 crore is allocated under Talliki Vandanam to provide Rs 15,000 to mothers of students.
- Rs 6,600 crore for Annadata Sukhibhava offers Rs 20,000 support to farmers, including central assistance.
- Rs 27,708 crore is earmarked for pensions, ensuring continued social security.
- Free agricultural power supply will be maintained, supporting the farming community.
Fiscal Indicators Show Improvement
Capital expenditure stands at Rs 53,915 crore, constituting 17.5% of the total outlay, aimed at boosting infrastructure and employment. Revenue expenditure is pegged at Rs 2,56,143 crore. Fiscal indicators demonstrate improvement, with revenue and fiscal deficits declining as a percentage of Gross State Domestic Product (GSDP). Additionally, debt restructuring efforts have already saved Rs 300 crore annually, enhancing fiscal sustainability.
Strengthening Investor Confidence and Leadership
Dinakar asserted that the budget strengthens investor confidence and reflects the leadership of Chief Minister N Chandrababu Naidu in aligning state growth with the national Viksit Bharat vision. He emphasized that this fiscal plan not only addresses immediate needs but also sets a foundation for long-term economic resilience and prosperity in Andhra Pradesh.
