Andhra Pradesh’s minister for finance, planning, commercial taxes & legislative affairs, Mr Payyavula Keshav presented the annual budget for the state for the year 2025-26 with a total outlay of Rs 322,359 crores.
At the outset the budget makes a concerted effort to fulfill the priority super 6 scheme promises made by Mr N Chandrababu Naidu leading up to the elections.
In addition, the budget also aligns itself towards achieving Swarna Andhra 2047.
‘This progressive budget is designed to change the course of the state and has allocated significant funds to key sectors and welfare programs. The proposed budget of Rs 322,359 crore will act as a bridge to achieve the ten guiding principles of the Swarna Andhra 2047 Vision’ said the chief minister on the budget.
Education
School education was one of the top beneficiaries in the budget. The finance minister allocated a hefty Rs. 31,805 crores for the School Education Department for 2025-26.
‘We strongly believe that educating children should not become a burden on parents. We also believe that no child should be deprived of education for any reason,’ said the FM.
Notably, Rs 9,407 crores has been allocated for the ‘Thalliki Vandanam’ scheme.
Supporting BC welfare
In line with this commitment, Rs 47,456 crore has been allocated for Backward Classes (BC) welfare in this budget. Additionally, Rs 1,000 crore has been assigned for the implementation of the Adarana-3 scheme, providing further support to BCs.
‘A historic decision has been made to grant an additional Rs 50,000 for housing construction for BC families’ noted the CM. Some of the other key allocations include Rs 20,218 crore for SC welfare, Rs 8,159 crore for ST welfare, and Rs 5,434 crore for minority welfare.
In regards to industry, infrastructure & Tourism there were some key allocations made in the energy sector.
Energy
With the CM strongly advocating for green energy and energy security the budget allocated a significant Rs. 13,600 crores to the Energy Department for 2025-26.
Industry body FAPPCI lauded the allocation made to the sector. ‘The allocation of Rs 13,600 crore to energy sector will lead in the transformative revival of the southern state’s energy sector which is aiming to emerge as a green hydrogen hub’ said Mr K. Mallikharjuna Rao, President, Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
Infrastructure
In regards to transport, roads and buildings the government allocated Rs 8785 crores for road development.
Speaking on the Mission Pothole Free Andhra to restore road conditions the FM said that it has made remarkable progress. ‘Out of the 20,059 km taken up for repair, work in 17,605 km is completed in just three months’ cited Mr Keshav.
Similarly, Rs. 13,862 crores were allocated to the Department of Municipal Administration & Urban Development for 2025-26.
Industry
Speaking on the industry and commerce sector the FM said that two industrial nodes Orvakal and Kopparthy have been approved by GoI for development with financial assistance. Four new nodes – Mulapeta, Donakonda, Chilamathur and Kuppam – have been designated for development under the Industrial Corridor Development Program.
The FM also highlighted some of the major investors that have committed to investing in the state. He allocated Rs 3,156 crores towards the industry sector.
Tourism, Sports and Culture
With the recently unveiled tourism policy the government is committed to drive growth in this sector and has allocated Rs 469 crores to this sector.
The Andhra Pradesh Tourism Forum Welcomed Rs 469 Crore Allocation to Strengthen Tourism Sector.
‘Andhra Pradesh Tourism Forum applauds the State government’s decision to allocate Rs 469 crore to the Youth Advancement, Tourism, and Culture Department in its 2025-26 budget. This allocation will undoubtedly boost tourism, create employment opportunities, and contribute to the state’s economic growth’ said Mr M V Pavan Kartheek, Secretary-Andhra Pradesh Tourism Forum.
Skill Development/Training
The FM informed that Skill Hubs have been established in 83 government ITIs to train unemployed youth and college dropouts to meet local industry demands. It is also proposed to establish 4 new ITIs exclusively for minorities under Pradhana Mantri Jan Vikas Karyakram.
The Skill Development and Training Department for 2025-26 was allocated Rs. 1,228 crores.
Agriculture
The government allocated a staggering Rs 48,341 crore to the agriculture sector. Rs 6,300 crore has been earmarked for the ‘Annadata Sukhibhava’ scheme.
‘No matter in what financial situation we are in, our farmers will receive Rs. 20,000 annually under the Annadata Sukhibhava scheme’ said the FM. Additionally, Rs 18,019 crore has been set aside for the critical water resources sector.
Panchayat Raj
Deputy chief minister Mr Pawan Kalyan’s ministry Panchayati Raj & Rural Development received an allocation of Rs.18,847 in the budget.
Healthcare
The Health, Medical & Family Welfare Department got a budgetary allocation of Rs. 19,264 crores for 2025-26. ‘Our government is planning to implement in the next financial year insurance-based health coverage of Rs.25 lakh per family’ informed the FM.
