Andhra Pradesh is poised to unveil its budget for the 2026-27 fiscal year, marking a transition from a phase of economic revival to one of growth. The upcoming budget, set to be presented by Finance Minister Payyavula Keshav, will outline the state's financial strategy, emphasizing development, welfare, and support for farmers and women. The budget session commenced on February 11, 2026, with the Governor's address and is scheduled to conclude on March 7, 2026. This period is critical for the state to articulate its economic roadmap and allocate resources for its ambitious "Swarna Andhra 2047" vision.

Financial Outlook and Priorities
The Andhra Pradesh state budget for the 2026-27 financial year is anticipated to be substantial, with estimates ranging from ₹3.45 lakh crore to ₹3.50 lakh crore. Key areas of focus are expected to include:

Development: Allocations will likely support infrastructure and economic growth initiatives.
Welfare Schemes: Continued emphasis on social safety nets and programs for vulnerable populations.
Farmer Support: Measures aimed at aiding the agricultural sector, which is a cornerstone of the state's economy.
Women's Empowerment: Programs designed to enhance the well-being and economic participation of women.
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"The State is moving from a phase of “revival” to one of “ascendance” under the vision of Swarna Andhra 2047." - Governor S. Abdul Nazeer (February 11, 2026)
Budgetary Process and Timelines
The budget preparation has been an extensive undertaking, involving numerous pre-budget meetings where Finance Minister Payyavula Keshav has engaged with various department heads.

Budget Presentation: Finance Minister Payyavula Keshav is scheduled to present the state budget in the Assembly at 11:15 AM on February 14, 2026.
Agriculture Budget: Simultaneously, Minister Atchannaidu is expected to present the budget for agriculture and allied sectors.
Legislative Council Presentation: Reports suggest Minister Kollu Ravindra may present the financial budget in the Legislative Council, while Minister Narayana might present the agriculture budget.
Session Schedule: The Budget Session began on February 11, 2026, with the Governor's address. It is planned to continue until March 7, 2026, concluding with cultural events for legislators.
Holiday Interruptions: The Assembly schedule includes a recess for Mahasivaratri on February 15, 2026, and further breaks on February 16, February 21-22, February 28-March 1, and March 3, 2026.
Departmental Allocations and Key Figures
While specific allocations for 2026-27 are yet to be detailed, past budgets offer insights into the state's financial priorities. For instance, the FY25 budget (₹2.94 lakh crore) saw significant allotments:
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| Sector | Allotment (₹ crore) |
|---|---|
| Agriculture & Allied Sectors | 11,855 |
| School Education | 29,909 |
| Health and Family Welfare | 18,421 |
| SC Welfare | 18,497 |
| ST Welfare | 7,555 |
| BC Welfare | 39,007 |
| Minority Welfare | 4,376 |
| Women and Child Welfare | 4,285 |
| Industries & Commerce | 3,127 |
| Energy (Electricity) | 8,207 |
| Roadways & Buildings | 9,554 |
| Police Department | 8,495 |
| Forest & Environment | 687 |
| Panchayat Raj and Rural Development | 16,739 |
| Municipal & Urban Development | 11,490 |
| Housing | 4,012 |
| Water Resources & Irrigation | 16,705 |
Revenue Expenditure (FY25): ₹2,35,916.99 crore
Capital Expenditure (FY25): ₹32,712.84 crore
Estimated Revenue Deficit (FY25): ₹34,743.38 crore (2.12% of GSDP)
Estimated Fiscal Deficit (FY25): ₹68,742.65 crore (4.19% of GSDP)
The FY26 budget included ₹6,000 crore for the Amaravati project and ₹9,407 crore for the Talliki Vandanam welfare scheme.
Interplay with Union Budget
Andhra Pradesh's financial planning also intersects with the Union Budget. Chief Minister N Chandrababu Naidu has met with Union Finance Minister Nirmala Sitharaman to seek central financial support for state infrastructure projects. Discussions have covered development priorities and central assistance. The Union Budget for 2026-27 reportedly made direct allocations of ₹5,600 crore to Andhra Pradesh, with significant portions earmarked for the Polavaram (₹3,320 crore) and Amaravati (₹780 crore) projects.
Financial Governance and Accountability
Past fiscal reports highlight concerns regarding the state's financial health. For FY25, the estimated revenue deficit was ₹34,743.38 crore, and the fiscal deficit was around ₹68,742.65 crore. Reports from the Comptroller & Auditor General have previously pointed to financial management issues. The Finance Minister, in the context of the FY25 budget, had criticized prior fiscal policies, stating that "raising loans in blatant violation of the Fiscal Responsibility & Budget Management (FRBM) guidelines and other irresponsible policy measures pushed the finances to the brink of disaster."
Pre-Budget Consultations
The Finance Minister has actively engaged in pre-budget meetings with ministers from various departments to finalize allocations.
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Home Department: A meeting was held to assess the financial needs for law and order, including police infrastructure, modernization, and manpower. Officials emphasized the importance of a robust Home Department for public safety.
Other Departments: Meetings with ministers from five key departments have been completed, indicating a thorough evaluation of the state's financial situation and resource allocation plans.
The budget for 2026-27 is expected to provide a detailed framework for the state's economic activities and development trajectory.
Sources Used:
The Hindu: Reports from February 14, 2026, February 11, 2026, and November 11, 2024, provide updates on the budget presentation, session details, and past budget figures. (Links: https://www.thehindu.com/news/national/andhra-pradesh/andhra-pradesh-state-budget-live-updates-february-14-2026/article70631317.ece, https://www.thehindu.com/news/national/andhra-pradesh/finance-minister-to-present-state-budget-in-ap-assembly-on-february-14/article70620177.ece, https://www.thehindu.com/news/national/andhra-pradesh/andhra-pradesh-state-budget-live-updates-november-11-2024/article68854397.ece)
NTV Telugu: Provided details on the expected budget size and key focus areas. (Link: https://ntvtelugu.com/andhra-pradesh-news/amaravathi/andhra-pradesh-budget-2026-27-to-be-presented-tomorrow-by-finance-minister-payyavula-keshav-935398.html)
AP7AM: Confirmed the date and time of the budget presentation and the roles of different ministers. (Link: https://www.ap7am.com/tn/857191/payyavula-keshav-to-present-ap-budget-in-assembly-today)
The Hans India: Reported on the ongoing budget preparations and pre-budget meetings. (Link: https://www.thehansindia.com/andhra-pradesh/budget-preparations-for-2026-27-in-full-swing-in-andhra-pradesh-1045453)
The Hindu BusinessLine: Detailed the Chief Minister's meeting with the Union Finance Minister regarding state projects and central support. (Link: https://www.thehindubusinessline.com/news/national/ap-cm-naidu-meets-fm-sitaraman-ahead-of-state-budget-for-2026-27/article70614772.ece)
Deccan Chronicle & Moneycontrol: Provided comprehensive breakdowns of the FY25 budget outlay and allocations for various sectors. (Links: https://www.deccanchronicle.com/southern-states/andhra-pradesh/ap-finance-minister-keshav-presents-full-fledged-budget-in-assembly-1837179, https://www.moneycontrol.com/news/india/andhra-pradesh-budget-2024-25-fm-payyavula-keshav-presents-budget-with-rs-2-94-lakh-crore-crore-outlay-12862729.html)
The Hindu: Mentioned the specific allocation for the Amaravati project in the FY26 budget. (Link: https://www.thehindu.com/news/national/andhra-pradesh/andhra-pradesh-budget-2025-2026-live-updates-february-28-2025/article69273299.ece)
The Hindu: Reported on the pre-budget meeting concerning the Home Department's financial needs. (Link: https://www.thehindu.com/news/national/andhra-pradesh/pre-budget-meet-reviews-home-departments-needs-for-financial-year-202627/article70591492.ece)
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