The Union Budget for 2025-26 has made significant provisions for the development priorities of the Andhra Pradesh Government, particularly by allocating substantial funds for the long-awaited Polavaram Multipurpose Irrigation Project, the Visakhapatnam Steel Plant, and the Vizag Port.
For the upcoming fiscal year, an allocation of ₹5,936 crore has been designated for the Polavaram project, along with an additional balance grant of ₹12,157 crore approved after the Centre accepted the revised project cost estimates submitted by the State Government.
The revival of the Visakhapatnam Steel Plant is a critical issue for the ruling NDA Government, especially given the local community’s protests against proposals for disinvestment. Finance Minister Nirmala Sitharaman has allocated ₹3,295 crore for this project, while the Vizag Port is set to receive ₹730 crore.
The emphasis on developing Visakhapatnam aligns with the NDA government’s aim to establish the city as the financial and fintech hub of Andhra Pradesh, in conjunction with industrial and logistical growth, while the new capital is planned for Amaravati as previously determined by the government led by Y.S. Jagan Mohan Reddy.
Other noteworthy allocations for the state include ₹162 crore for healthcare, ₹186 crore for Zero Budget Natural Farming, ₹375 crore for skill development initiatives, ₹240 crore for infrastructure related to roads and buildings, and ₹242 crore for irrigation projects outside of Polavaram.
Investments in skills and infrastructure are crucial for Andhra Pradesh, particularly as the state emphasizes skill development based on a skill census and aims to improve its severely deteriorated road conditions.
Looking back to the allocations from the Union Budget for 2024-25 presented in July of the previous year, the NDA Government, led by N. Chandrababu Naidu, is actively advancing the development projects promised during the last election. A total of approximately ₹50,475 crore was allocated for the state for FY 2024-25, which also included ₹15,000 crore for the ongoing construction of Amaravati.
Although Chief Minister N. Chandrababu Naidu refrained from commenting on specific allocations, he expressed approval for the budget, stating it mirrored Prime Minister Narendra Modi’s vision for a developed India (Vikasit Bharat).
Conversely, the opposition party YSR Congress Party (YSRCP) criticized the NDA coalition, comprising the TDP and Jana Sena, for allegedly failing to secure essential financial support from the Centre. They contended that the budget primarily focused on previously announced schemes, with limited new assistance for the state’s development.
