AMARAVATI (Feb 14, 2026) — Finance Minister Payyavula Keshav presented a ₹3.32 lakh crore budget for the 2026–27 fiscal year, emphasizing a dual focus on rural infrastructure and extensive welfare components. Describing it as a “roadmap of hope,” the budget aims to stabilize the state’s finances while addressing the aspirations of five crore citizens.
Macro-Fiscal Framework
The budget reflects a path of “calibrated fiscal consolidation,” shifting away from the financial stress of previous years.
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Total Outlay: ₹3,32,205 crore
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Revenue Expenditure: ₹2,56,143 crore
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Capital Expenditure: ₹53,915 crore (focused on asset creation)
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Revenue Deficit: ₹22,002 crore (1.11% of GSDP)
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Fiscal Deficit: ₹75,868 crore (3.84% of GSDP)
Sectoral Allocations & Welfare Highlights
The government has prioritized human capital and the rural economy through massive departmental outlays:
| Department / Component | Allocation (₹ Crore) | Key Initiatives |
| BC Welfare Component | ₹51,021 | Full tuition fee reimbursement & post-matric maintenance allowance. |
| School Education | ₹32,308 | ₹1,500 Cr for infrastructure; ₹9,668 Cr for Thalliki Vandanam. |
| Rural Development | ₹22,942 | Led by Dy CM Pawan Kalyan; includes ₹8,365 Cr for VB-G RAM G. |
| Health & Family Welfare | ₹19,306 | Focus on clearing legacy liabilities and strengthening primary care. |
| Agriculture & Allied | ₹13,598 | ₹6,600 Cr for Annadata Sukhibhava (₹20,000/family). |
| Water Resources | ₹18,224 | ₹6,105 Cr dedicated specifically to the Polavaram Project. |
Strategic Initiatives
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Wealth Fund: The Minister announced the creation of the AP Wealth Fund, modeled after global sovereign wealth funds (like Norway’s), to ensure long-term financial self-reliance.
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Rural Employment: The VB-G RAM G scheme (replacing MGNREGA) will provide 125 days of employment, up from the previous 100-day limit.
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Women’s Empowerment: ₹2,897 crore allocated for the Deepam 2.0 scheme, providing three free LPG cylinders annually to 1.08 crore women.
