Andhra Pradesh State Budget 2026-27 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Andhra Pradesh FY 2026-27
Andhra Pradesh State Budget 2026-27 Budget at a Glance
Total Receipts
Rs 2.34 lakh crore
+18.9%
Total Expenditure
Rs 3.1 lakh crore
+11.7%
Fiscal Deficit
3.8%
Rs 75,868 crore
Capital Expenditure
Rs 53,915 crore
+62.7%
Tax Revenue
Rs 1.9 lakh crore
+57.2%
Interest Payments
Rs 37,281 crore
12% of expenditure
Andhra Pradesh Revenue Receipts 2026-27
Own tax revenue vs non-tax revenue breakdown
Andhra Pradesh Expenditure Breakdown 2026-27
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Andhra Pradesh 2026-27
The fiscal deficit for Andhra Pradesh in 2026-27 is 3.8% of GSDP (Rs 75,868 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Andhra Pradesh's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 37,281 crore consume 12.0% of total expenditure.
Andhra Pradesh State Budget 2026-27 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2.34 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.34 lakh crore | 100.0% |
| a. Own Tax Revenue | Rs 1.9 lakh crore | 81.2% |
| b. Non-Tax Revenue | Rs 11,474 crore | 4.9% |
| B. Total Expenditure | Rs 3.1 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.56 lakh crore | 82.6% |
| 2. Capital Expenditure | Rs 53,915 crore | 17.4% |
| of which: Interest Payments | Rs 37,281 crore | 12.0% |
| C. Fiscal Deficit | Rs 75,868 crore | 3.8% of GSDP |
Source: Andhra Pradesh State Budget Documents via PRS India. All figures in Indian Rupees.
Andhra Pradesh Department-wise Expenditure 2026-27
Top departments by allocation in Andhra Pradesh for 2026-27
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Welfare of SC, ST, OBC and Minorities | Rs 52,081 crore | Rs 774 crore | Rs 52,855 crore | 17.0% |
2. Education, Sports, Arts and Culture | Rs 33,044 crore | Rs 2,629 crore | Rs 35,673 crore | 11.5% |
3. Rural Development | Rs 15,242 crore | Rs 5,368 crore | Rs 20,610 crore | 6.6% |
4. Health and Family Welfare | Rs 16,517 crore | Rs 3,113 crore | Rs 19,630 crore | 6.3% |
5. Irrigation and Flood Control | Rs 734 crore | Rs 16,000 crore | Rs 16,734 crore | 5.4% |
6. Agriculture and Allied Activities | Rs 13,722 crore | Rs 711 crore | Rs 14,433 crore | 4.7% |
7. Energy | Rs 14,120 crore | Rs 0 | Rs 14,120 crore | 4.6% |
8. Urban Development | Rs 4,217 crore | Rs 8,324 crore | Rs 12,541 crore | 4.0% |
9. Social Welfare and Nutrition | Rs 9,054 crore | Rs 135 crore | Rs 9,189 crore | 3.0% |
10. Police (Home Department) | Rs 9,165 crore | Rs 0 | Rs 9,165 crore | 3.0% |
11. Transport | Rs 6,435 crore | Rs 2,399 crore | Rs 8,834 crore | 2.8% |
Andhra Pradesh Budget 2026-27 Analysis & Highlights
Key Highlights
- Gross budget of Rs 3,32,205 crore for 2026-27 (Rs 3,10,058 crore net of debt repayment), up 10.5% over the 2025-26 revised estimate of Rs 3,00,535 crore
- Capital outlay of Rs 48,698 crore, a 47% jump over the 2025-26 revised estimate of Rs 33,135 crore โ triple the Rs 16,141 crore actually spent in 2024-25
- Fiscal deficit budgeted at Rs 75,868 crore (3.8% of GSDP), down from 4.6% in the 2025-26 revised estimate but still above the 16th Finance Commission's 3% norm for 2026-31
- Revenue deficit nearly halves to Rs 22,003 crore (1.1% of GSDP) from Rs 41,118 crore (2.3% of GSDP) in the 2025-26 revised estimate
- Revenue receipts of Rs 2,34,140 crore assume 19% growth over the 2025-26 RE โ after the state missed its 2025-26 revenue target by 10% (Rs 1,96,904 crore collected vs Rs 2,17,977 crore budgeted)
- Welfare of SC, ST, OBC and minorities is the largest sector at Rs 52,855 crore (up 27%); the NTR Bharosa pension scheme alone accounts for Rs 27,719 crore
- Education allocated Rs 35,673 crore (up 7%) and health Rs 19,630 crore (up 10%) over the 2025-26 revised estimates
- Interest payments of Rs 37,281 crore will consume 16% of revenue receipts; pensions add Rs 23,713 crore (another 10%)
- Outstanding liabilities stood at 36% of GSDP in 2024-25 (up from 33% in 2021-22), excluding off-budget borrowings of Rs 1.28 lakh crore (9.7% of GSDP) as of March 2023
- Gross borrowings of Rs 97,315 crore planned, including Rs 76,182 crore of open-market loans and Rs 11,000 crore of 50-year interest-free central capex loans
- Rural development rises 43% to Rs 20,610 crore and urban development 47% to Rs 12,541 crore โ the two fastest-growing major sectors
- Rs 6,105 crore for the Polavaram project and Rs 6,000 crore for Amaravati capital city construction anchor the infrastructure push
- GSDP projected at Rs 19,75,073 crore for 2026-27, assuming 12% nominal growth, after the 2025-26 GSDP estimate was revised down 3% to Rs 17,62,357 crore
Compare Andhra Pradesh Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.78 lakh crore | Rs 3.1 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.97 lakh crore | Rs 2.34 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 33,135 crore | Rs 53,915 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 4.6% | 3.8% |
| Own Tax Revenue | โ | โ | โ | Rs 1.21 lakh crore | Rs 1.9 lakh crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Andhra Pradesh State Budget 2026-27
The Andhra Pradesh state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Andhra Pradesh Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Andhra Pradesh with other states
Side-by-side comparison of fiscal metrics across Indian states