The Finance Minister of Andhra Pradesh, Payyavula Keshav, is set to unveil his second State Budget for the fiscal year 2025-26 on February 28.
Following customary practices, a distinct Budget dedicated to Agriculture and Allied Sectors will also be introduced on the same day, as determined by discussions within the Business Advisory Committee (BSA) during its meeting on the first day of the Budget session.
This upcoming Budget holds particular importance as it represents the first full-year financial plan put forth by the NDA Government, which took office in July 2024 after winning the elections and unseating the YSR Congress Party (YSRCP), which had governed from 2019 to 2024 under Chief Minister Y. S. Jagan Mohan Reddy.
Notably, Andhra Pradesh became the first state in India to go through two vote-on-account Budgets during the fiscal year 2024-25. In February 2024, Jagan Reddy’s administration presented a vote-on-account Budget amounting to ₹2.86 lakh crore in anticipation of the elections scheduled for May, subsequently receiving approval from the State Assembly for ₹1.09 lakh crore for the initial four months of the fiscal period.
Upon assuming office in July 2024, the NDA government, led by Chief Minister N. Chandrababu Naidu, opted to formulate a full Budget, citing the “financial confusion” caused by the previous YSRCP government. This resulted in the unprecedented decision to present a second vote-on-account Budget.
In September, Governor S. Abdul Nazeer issued an ordinance that allowed for a vote-on-account Budget for four months, covering the period from August 1 to November 30, 2024, with an outlay of ₹12,997 crore.
In November, Finance Minister Payyavula Keshav introduced his first Budget for the fiscal year 2024-25, which featured a total outlay of ₹2.94 lakh crore. The projected fiscal deficit was around 4.19 percent of the Gross State Domestic Product (GSDP), while the revenue deficit was expected to stand at 2.12 percent of the GSDP. Notably, the allocation for agriculture and allied sectors was ₹11,855 crore.
The forthcoming Budget for FY26 has garnered significant interest among all stakeholders as Chief Minister Naidu faces the challenging task of balancing the demands for extensive welfare schemes promised during the election campaign with the need for funding infrastructure development in the state.
