AP Finance Minister Payyavula Keshav presenting the Budget for 2026-27 in the Assembly at Amaravati on Saturday
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Andhra Pradesh Finance Minister Payyavula Keshav presented the State Budget for 2026-27 at Amaravati on Saturday, proposing a total outlay of Rs 3.32 lakh crore. The budget estimates a revenue expenditure of Rs 2.56 lakh crore and a capital expenditure of Rs 53,915 crore.
The fiscal deficit has been projected at Rs 75,868 crore, which is approximately 3.84 per cent of the Gross State Domestic Product (GSDP), and a revenue deficit estimated at Rs 22,002 crore, or 1.11 per cent of GSDP.
“In the very first year of our governance, the economy bounced back from an average growth rate of 10.3 per cent in 2019-24 to an impressive 11.75 per cent in 2024-25. Then came 2025-26, which has been characterised by headwinds of geo-political uncertainties,” he said.
He said that the final accounts for 2024-25, showed a revenue deficit of Rs. 60,285 crore, and a fiscal deficit of Rs. 81,362 crore. These figures represented 3.79 per cent and 5.11 per cent of the GSDP, respectively.
The Revised Estimates for 2025-26 project the total revenue expenditure at Rs 2.38 lakh crore and capital expenditure at Rs 39,498 crore. The revenue deficit is estimated to be around Rs. 41,118 crore, or 2.33 per cent of the GSDP, with the fiscal deficit at approximately Rs. 80,567 crore, or 4.57 per cent of the GSDP.
On the Polavaram project, he said the government cleared pending bills aggregating to Rs 5,000 crore. He said the diaphragm wall had reached 91 per cent completion, with the overall project progress having crossed 60 per cent.
Published on February 14, 2026