Andhra Pradesh Cabinet will meet on Friday morning to approve the Budget proposals for the year 2025-26 to be presented by Finance Minister Payyavula Kesav in the State Assembly later in the day.
According to the sources, the Government is likely to peg the total expenditure in the range of ₹3.05 lakh crore and ₹3.20 lakh crore.
This will be the second Budget for Kesav as he presented his first Budget for the year 2024-25 with an outlay of ₹2.94 lakh crore in November last year after two interim budgets after NDA Government assumed power in July 2024. The fiscal deficit was projected at around 4.19 per cent of the Gross State Domestic Product (GSDP). While the revenue deficit was to be at 2.12 per cent of the GSDP, the allocation for agriculture and allied sectors was ₹11,855 crore.
The Budget to be presented tomorrow, will also give the revised estimates for the Budget of FY25 which are expected to be higher than the ₹2.94 lakh crore projected initially.
REVENUE
The data on the revenue growth for the State Government during the last one year from January 2024 to January 2025 available with the Finance Department has become a cause of concern ahead of the Budget as it showed only 1.2 per cent in State’s own tax revenue.
As per the data, the own tax revenue of Andhra Pradesh at ₹68,807 crore increased 1.2 per cent in January 2025 as against ₹67,993 crore the same period last year.
It remains to be seen how the upcoming Budget will take a view on the data and measures to be taken to improve own-tax and non-tax revenues