Andhra Pradesh Finance Minister Payyavula Keshav will present his second State Budget for 2025-26 on February 28.
As per practice, a separate Budget for Agriculture and Allied Sectors will also be presented on the same day, according to the decision taken by the Business Advisory Committee (BSA) in its meeting on Monday, the first day of the Budget session.
The upcoming Budget assumes significance as it will be the first full-year Budget by the NDA Government after it assumed power in July 2024 after winning the mandate defeating the YSR Congress Party (YSRCP) which was in power during 2019-2024 with Y S Jagan Mohan Reddy as the Chief Minister.
The first in the State as well in the country, Andhra Pradesh witnessed two vote on account Budgets during FY2024-25. In February 2024, the then Jagan Reddy’s government had presented the first vote-on-account Budget of ₹2.86 lakh crore ahead of the elections scheduled to be held in May and obtained approval from the State Assembly for the sanction of ₹1.09 lakh crore for the first four months of the fiscal.
After assuming power in July 2024 the NDA government led by Chief Minister N Chandrababu Naidu decided again on a full Budget in view of “financial confusion created by YSRCP Govt in the State’‘ and set a record by presenting a second vote on account Budget.
Governor S Abdul Nazeer had in September promulgated an ordinance providing for a vote on account Budget for the State for four months from August 1 – November 30, 2024 with an outlay of ₹12, 9, 972 crore.
In November, Finance Minister Payyavula Keshav presented his first Budget for the year 2024-25 with an outlay of ₹2.94 lakh crore. 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 upcoming Budget for FY26 has generated a lot of interest in all stake-holders as Chief Minister Naidu will have a tough task ahead in balancing the need for the mega welfare schemes promised before the elections and requirement of funds for the infrastructure development in the State.