Andhra Pradesh Budget Prioritises Agriculture, Water Management; Funds Allocated For Capital Amravati, Telugu Language

The Andhra Pradesh government, on Friday (28 February), presented its annual budget for the financial year 2025-26, with a total outlay of Rs 3,22,359 crore as reported by The Hindu.

The budget has placed a significant emphasis on welfare schemes, infrastructure development, and agricultural sustainability, aligning with key electoral promises made by the government.

Welfare Initiatives Take Center Stage

Two major welfare programs, Talliki Vandanam and Annadata Sukhibhava, which are part of the Super Six electoral promises, have received substantial allocations.

The government has earmarked Rs 9,407 crore for Talliki Vandanam, a scheme aimed at empowering women and supporting mothers, while Rs 6,300 crore has been allocated for Annadata Sukhibhava, which is intended to provide financial assistance to farmers.

Additionally, the budget includes Rs 10 crore for Telugu language development, reinforcing efforts to preserve and promote the regional language.

In a first, the state government has also announced free power for schools, ensuring uninterrupted electricity supply to educational institutions.

Major Infrastructure and Irrigation Projects

One of the most ambitious projects highlighted in the budget is the Godavari-Banakacherla intra-linking of rivers initiative. 

While the government mentioned the project as a key development priority, no specific fund allocation details were provided. 

The government has also reaffirmed its commitment to the Amaravati capital project, with Rs 6,000 crore allocated for its development. The Finance Minister stated that the state is prepared to restart the project on a large scale, signaling renewed momentum for the long-pending capital city development.

For water resource management, a total of Rs 11,314 crore has been allocated, emphasising the state’s focus on improving irrigation systems and water conservation measures.

Boost for Public-Private Partnership (PPP) Projects

To encourage private sector participation in infrastructure development, the government has introduced the Viability Gap Funding (VGF) Scheme. Under this initiative, the state will provide funding support of up to 20 per cent of the total project cost for PPP projects across various departments. 

A dedicated corpus of Rs 2,000 crore has been proposed to facilitate the smooth implementation of this scheme.

Strong Economic Growth Reflected in GSDP Estimates

Finance Minister Payyavula Keshav highlighted the state’s strong economic recovery, stating that Andhra Pradesh’s Gross State Domestic Product (GSDP) has grown at an impressive rate of 12.94 per cent as per the First \Advance Estimates for 2024-25. 

The agriculture and allied sector has witnessed robust growth at 15.86 per cent, while the industrial sector grew at 6.71 per cent, and the services sector recorded an 11.70 per cent increase.

Support for Agriculture and Jal Jeevan Mission

To promote sustainable agricultural practices and combat drought, the government has allocated Rs 29,655 crore for the agriculture sector. Of this, Rs 13,487 crore has been set aside specifically for agriculture and allied activities.

In line with the Jal Jeevan Mission, which aims to provide safe drinking water to rural households, the budget earmarks Rs 2,800 crore for its implementation.