Andhra Pradesh Presents ₹3.32 Lakh Crore Budget for FY 2026-27
Andhra Pradesh Finance Minister Payyavula Keshav presented a ₹3.32 lakh crore budget for the financial year 2026-27, prioritizing education, welfare, and fiscal reforms. While the overall outlay is confirmed, the headline's stated ₹8.3 crore allocation for 'VB G RAM-G' appears inconsistent with major state allocations for rural employment schemes.
Key Highlights
- AP Finance Minister Payyavula Keshav presented the 2026-27 budget.
- Budget outlay confirmed at ₹3,32,205 crore.
- Focus areas include education, welfare, and fiscal reforms.
- Headline's ₹8.3 crore for 'VB G RAM-G' appears inaccurate or misleading.
- State required to allocate significantly more for central VB-G RAM G scheme.
- Budget includes allocations for Amaravati, digital infrastructure, and various welfare schemes.
The Andhra Pradesh government, through its Finance Minister Payyavula Keshav, presented a substantial budget of ₹3,32,205 crore for the financial year 2026-27 in the State Assembly on Saturday, February 14, 2026. This comprehensive budget, as reported by multiple credible sources including The Hindu, Times of India, Mint, and Deccan Herald, aims to balance development and welfare priorities, focusing significantly on sectors like education, healthcare, agriculture, and infrastructure.
Key highlights of the budget include estimated revenue expenditure at ₹2,56,142 crore and capital expenditure at ₹48,697 crore. The budget projects a revenue deficit of ₹22,002 crore (1.11% of GSDP) and a fiscal deficit of ₹75,868 crore (3.84% of GSDP), indicating a commitment to fiscal consolidation. The Finance Minister emphasized that the budget is a roadmap of hope, reflecting corrective efforts initiated in 2024 and aligned with the 'Swarna Andhra @ 2047' vision under Chief Minister N. Chandrababu Naidu.
Specific allocations within the budget include substantial amounts for critical sectors. For instance, school education is earmarked to receive ₹32,308 crore, with additional provisions for improving hostel facilities. The Panchayati Raj and Rural Development Department has been allocated nearly ₹23,000 crore, while the Health, Medical & Family Welfare Department received ₹19,306 crore. Agriculture and allied departments are slated for ₹13,598 crore, including schemes like 'Annadata Sukhibhava–PM Kisan' which provides an enhanced benefit of ₹20,000 to farmer families. Water Resources Department also saw a significant allocation of ₹18,224 crore, with a focus on irrigation projects including the Polavaram project.
Additionally, the budget proposes ₹6,000 crore for the development of Amaravati, the capital city, and ₹638 crore for digital infrastructure and quantum valley projects. The energy sector is allocated ₹13,934 crore, and logistics and connectivity ₹13,546 crore. Industrial promotion and MSMEs will receive ₹3,161 crore. Welfare measures are a significant focus, with ₹51,021 crore for the BC component, ₹6,090 crore for Minorities Welfare, and ₹4,582 crore for Women, Children & Senior Citizens Welfare.
A notable point of verification concerns the allocation for 'VB G RAM-G' as highlighted in the original headline with ₹8.3 crore. While the term 'VB-G RAM G' refers to a major rural employment guarantee scheme at the central level, which replaced MGNREGA and received a substantial Union Budget allocation of over ₹95,000 crore for 2026-27, the ₹8.3 crore figure in the Andhra Pradesh budget is highly questionable. Other reports suggest that for Andhra Pradesh to receive its customary 10% share of the central scheme, the state would need to allocate at least ₹6,300 crore in its budget. Furthermore, The Hans India reported an allocation of 'Rs. 1,500 crore for the VB Ji Ram Ji Adjustment Fund' within the Andhra Pradesh budget, which sounds related but is a different figure and slightly different name. Given these discrepancies, the ₹8.3 crore figure for 'VB G RAM-G' as a primary allocation in the state budget appears to be either a significant typo, a reference to a very specific and minor sub-component of a larger scheme, or a misrepresentation of the actual allocation for rural employment. It is not reflective of the broader state commitment to the central VB-G RAM G scheme.
The budget session commenced on February 11, 2026, with the Governor's address, and the budget was formally presented on February 14. The government aims to improve the state's fiscal health, moving from a phase of "revival" to "ascendance" under the "Swarna Andhra 2047" vision.
Overall, the news about the Andhra Pradesh Budget 2026-27 is accurate regarding the total outlay and the Finance Minister, and it is well-corroborated by multiple credible Indian news sources. However, the specific allocation figure for 'VB G RAM-G' in the headline needs clarification and appears to be misleading compared to the actual scale of state contributions to rural employment schemes.
Frequently Asked Questions
What is the total outlay of the Andhra Pradesh Budget for 2026-27?
The total outlay for the Andhra Pradesh Budget for the financial year 2026-27 is ₹3,32,205 crore.
Who presented the Andhra Pradesh Budget for FY 2026-27?
Andhra Pradesh Finance Minister Payyavula Keshav presented the State Budget for the financial year 2026-27.
What are the key focus areas of the Andhra Pradesh Budget 2026-27?
The budget prioritizes education, welfare, fiscal reforms, agriculture, healthcare, and infrastructure development, aiming for overall growth and in line with the 'Swarna Andhra @ 2047' vision.
What is 'VB-G RAM G' and how much did Andhra Pradesh allocate for it?
'VB-G RAM G' is a central rural employment guarantee scheme that replaced MGNREGA. While the Union Budget allocated over ₹95,000 crore for it nationally, the ₹8.3 crore figure mentioned in The Hindu's headline for Andhra Pradesh's allocation seems inaccurate or refers to a very minor component, as the state's expected contribution to the central scheme would be significantly higher, potentially around ₹6,300 crore.
When was the Andhra Pradesh Budget for 2026-27 presented?
The Andhra Pradesh Budget for the financial year 2026-27 was presented on Saturday, February 14, 2026.