The revenue deficit was estimated at Rs 22,002 crore, and the fiscal deficit was projected at Rs 75,868 crore, which amounts to 3.84 per cent of the Gross State Domestic Product (GSDP).
Photo: X/@PayyavulaMLA
Andhra Pradesh Finance Minister Payyavula Keshav on Saturday presented the Budget for 2026–27 with a total outlay of Rs 3,32,205 crore. The revenue expenditure was estimated at Rs 2,56,143 crore, while capital expenditure was pegged at Rs 53,915 crore.
The revenue deficit was estimated at Rs 22,002 crore, and the fiscal deficit was projected at Rs 75,868 crore, which amounts to 3.84 per cent of the Gross State Domestic Product (GSDP).
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Chief Minister N. Chandrababu Naidu described it as the best possible Budget under the prevailing circumstances, stating that the state was still recovering from the “destruction” caused by the previous YSR Congress Party government.
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He alleged that the YSRCP had left behind a legacy of low income and high expenditure, adding that it would take time to stabilise the economy. He expressed confidence that the state would regain a strong financial position in the next two to three years, enabling the presentation of a better Budget.
In his Budget speech, Keshav also targeted the YSRCP, saying, “From a financial standpoint, we are yet to come out of the woods. Things are not all that rosy. I still struggle while sorting the financial mess left behind by the previous regime.”
He claimed that the previous government left liabilities of Rs 9.74 lakh crore. “We are forced to borrow to repay your borrowings. However, every rupee we borrow today goes into productive expenditure,” he said, attacking the Opposition.
The Finance Minister added that the present government had renegotiated loans worth Rs 43,298 crore, resulting in annual savings of Rs 327 crore. He also proposed the creation of an AP Wealth Fund with a seed corpus of Rs 100 crore, inviting private equity investors to contribute and invest in opportunities across the country to generate wealth for the state.
However, the YSRCP dismissed the Budget as a “bundle of lies”, alleging that it concealed more than it revealed and lacked substance. Former Finance Minister Buggana Rajendranath claimed that the Budget format itself had been altered to hide facts and failed to provide mandatory data for the past ten years.
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