The Andhra Pradesh state government, on Friday (February 28, 2025), presented the annual budget for the financial year 2025-26 with a total outlay of ₹3,22,359 crore. Of this, revenue expenditure is estimated at ₹2,51,162 crore, and capital expenditure at ₹40,635 crore.
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Talliki Vandanam, Annadata sukhibhava, the two promises made under Super Six, key electoral promises, found their way into the Budget. The government made a mention of Godavari-Banakacherla, an ambitious ‘intra-linking of rivers’ initiative. But, there was no specific mention of funds allocated to it. However, allocation of ₹6,705 crore for Polavaram irrigation project was made in the budget. The government for the first time announced ₹10 crore for Telugu language development and free power to schools. A viability gap funding (VGF) scheme for Capital expenditure was also announced in the budget.
Presenting the budget in Andhra Pradesh Assembly on Friday, Andhra Pradesh Finance Minister Payyavula Keshav said that the estimated revenue deficit is around Rs. 33,185 crore and the fiscal deficit is around ₹79,926 crore. The revenue deficit will be around 1.82 per cent and fiscal deficit will be around 4.38 per cent of Gross State Domestic Product (GSDP).
The revised estimate for revenue expenditure for financial year (FY) 2024-25 is ₹2,24,342 crore, and for capital expenditure it is ₹24,072 crore. The revenue deficit for 2024-25 is around ₹48,311 croгe, whereas the fiscal deficit is around ₹73,362 crore. The revenue deficit is 3.01% and fiscal deficit is 4.57 per cent of GSDP, he said adding that the finance accounts finalized by the Accountant General of Andhra Pradesh show a revenue deficit of ₹38,682 crore, and a fiscal deficit of ₹62,719 crore, which was 2.72 per cent and 4.41 per cent of the GSDP respectively, for FY 2023-24, he said.
‘Growth back on track’
“Economic growth is back on track. As per the First Advance Estimates for 2024-25, (the) GSDP has grown at a rate of 12.94 per cent. All key sectors have registered a strong performance – agriculture and allied activities have grown at 15.86 per cent, industries at 6.71 per cent, and services at 11.70 per cent,” Mr. Keshav said.
To overcome the resource constraints, the government has planned innovatively to take up large capital expenditure projects. I am glad to announce the innovative Viability Cap Funding Scheme for Public Private Partnership (PPP) projects for up to 20 per cent of the project cost to any Department, beyond the existing budgetary allocation.” I propose to establish a corpus of ₹2,000 crore dedicated for the VGF scheme,” he said.
The Finance Minister said that the government was ready to start the Amaravati project on a grand scale. Our aim is not only to develop amaravati as a city but also as a growth engine leading the development of state, he said, adding, “However, our government, without providing directly from state resources, is restarting the capital city project.” ₹6,000 crore is shown as allocation for Amaravati project.
Mr. Keshav said ₹9,407 crore was allocated for Talliki Vandanam and ₹6,300 crore for Annadata sukhibhava. “ I am happy to announce the fulfilment of another manifesto promise of Houbling the financial relief during fishing ban period from₹10,000 to ₹20,000. I propose to allocate ₹13,487 crore for the Agriculture & Allied sectors for 2025-26,” he said amidst applause.
Referring to Water Resources, he said that ₹11,314 crore was allocated. For a sustainable agriculture and drought free state, ₹29,655 crore was allocated. As much as ₹2,800 crore is earmarked for Jal Jeevan Mission.
Similarly, capital expenditure for the government means expenditure on irrigation, roads, dams, etc. which gives returns in future. This is the goal of capital expenditure, Mr. Keshav said, adding, “Our capital expenditure is not meant to build palaces worth hundreds of crores or print pictures on survey stones with ₹650 crore.”
The Minister was making an oblique reference to Rushikonda palace at Visakhapatnam constructed during the YSR Congress Party (YSRCP) regime.
“This is actually personal expenditure, disguised as capital expenditure by the previous regime. This is the difference between the policies of the previous regime and the current regime in spending every rupee” he added.
Mr. Keshav, referring to Swarna Andhra @ 2047, said that 10 guiding principles of wealthy, healthy and Happy Andhra, was driving the government. The target of Swarna Andhra @ 2047 is ambitious, but possible. The progressive transformation taking place in Andhra Pradesh since last year gives us all the reasons to be optimistic and move forward with confidence and pride.
Published – February 28, 2025 11:56 am IST
