The Andhra Pradesh government, led by the Telugu Desam Party and the National Democratic Alliance, presented its first full-fledged budget of ₹2.94 lakh crore for the 2024-25 fiscal year on Monday. This comes five months after the government assumed office.
Finance Minister Payyavula Kesav outlined the budget in the state legislative assembly, which includes ₹2,35,916 crore for revenue expenditure and ₹32,712 crore for capital expenditure, with ₹25,798 crore allocated for public debt and loans. The total outlay represents a 5.40% increase over the previous year’s budget of ₹2.79 lakh crore.
The budget also forecasts a revenue deficit of ₹34,743 crore and a fiscal deficit of ₹68,742 crore, which amounts to 4.19% of the Gross State Domestic Product (GSDP) and 2.12% for the revenue deficit.
In comparison, the YSR Congress government presented an interim budget of ₹2.86 lakh crore earlier in February, and the NDA government, led by Chief Minister N Chandrababu Naidu, used an ordinance in July to secure ₹1.29 lakh crore in expenditure approval for the period from August 1 to November 30.
Key allocations in the budget include ₹29,909 crore for school education, ₹16,739 crore for panchayat raj and rural development, ₹18,421 crore for health, ₹18,497 crore for SC welfare, and ₹39,007 crore for OBC welfare.
Kesav criticized the previous government for “mismanagement of state finances,” including the diversion of resources, depletion of revenues through improper policies, and unsustainable borrowing practices. He claimed that the previous government had taken loans at high-interest rates and violated central guidelines by diverting funds for Centrally Sponsored Schemes. He further stated that the state’s economy was on the brink of collapse and emphasized the need for the current generation to rebuild Andhra Pradesh.
The government also fulfilled key pre-election promises, including enhanced monthly pensions ranging from ₹4,000 to ₹15,000, three free gas cylinders annually, farmer investment support through the Annadatha Sukhibhava-PMKISAN scheme, free bus travel for women, and increased school assistance under the Thalliki Vandanam program.
For the upcoming fiscal year, the budget projects tax revenue of ₹1.60 lakh crore, up from ₹1.31 lakh crore in the revised estimate for 2023-24, and non-tax revenue is expected to reach ₹10,576 crore compared to ₹7,432 crore in the previous year. However, central grants and tax devolutions are estimated at ₹34,701 crore, a decrease from ₹46,834 crore in 2023-24. No new taxes have been introduced in this budget.
