15 Feb 2026·Source: The Hindu

4 min

EconomySocial IssuesPolity & GovernanceNEWS

Andhra Pradesh Budget 2026-27: Focus on Education, Welfare, Infrastructure

Andhra Pradesh's budget emphasizes inclusive growth, welfare, and long-term asset creation with fiscal discipline.

The Andhra Pradesh government unveiled its Budget for 2026–27 with a total outlay of ₹3,32,205 crore, focusing on inclusive growth, welfare expansion, and long-term asset creation while maintaining fiscal discipline. Revenue expenditure is estimated at ₹2,56,142 crore, and capital expenditure at ₹48,697 crore. School education received the highest allocation of over ₹32,300 crore.

Backward Classes Welfare was allocated ₹23,650.88 crore, while Social Welfare and EWS Welfare departments were earmarked ₹11,118.84 crore and ₹10,699.33 crore respectively. ₹2,144 crore was allocated for Reproductive and Child Health programmes and ₹838 crore under the Ayushman Bharat Health Infrastructure Mission. ₹4,000 crore was allocated for the Jal Jeevan Mission.

The creation of an AP Wealth Fund with a seed corpus of ₹100 crore was proposed.

Key Facts

The Andhra Pradesh government unveiled its Budget for 2026–27 with a total outlay of ₹3,32,205 crore.

Revenue expenditure is estimated at ₹2,56,142 crore.

Capital expenditure is estimated at ₹48,697 crore.

School education received the highest allocation of over ₹32,300 crore.

UPSC Exam Angles

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Connects to syllabus topics on fiscal federalism, budget making, and social sector spending.

Potential question types: Statement-based MCQs, analytical questions on budget priorities, and critical evaluation of welfare schemes.

In Simple Words

The Andhra Pradesh government is planning how to spend its money for the year. A big chunk, over ₹32,300 crore, is going to schools. This means better facilities and resources for students.

India Angle

In India, many families struggle to afford quality education. This budget aims to make education more accessible and improve the quality of schooling, especially for those from poorer backgrounds.

For Instance

Think of it like your family deciding to spend more on your child's tuition or buying them new books. The government is doing the same for the state's children.

This affects everyone because better education leads to better job opportunities and a stronger economy. It helps create a brighter future for the state's children.

Investing in education is investing in the future.

Visual Insights

Andhra Pradesh Budget 2026-27: Key Figures

Key allocations and figures from the Andhra Pradesh Budget 2026-27.

Total Budget Outlay: ₹3,32,205 crore
Revenue Expenditure: ₹2,56,142 crore
Capital Expenditure: ₹48,697 crore
Allocation for School Education: ₹32,300 crore

More Information

Background

The Andhra Pradesh budget is framed within the broader context of Indian fiscal federalism. This system, defined by the Constitution of India, divides financial powers between the Union and the states. States have the autonomy to formulate their budgets, prioritizing sectors based on their specific needs and developmental goals. The Finance Commission plays a crucial role in recommending principles governing the distribution of tax revenues between the Union and the states, ensuring equitable resource allocation. Historically, state budgets have evolved from being mere statements of accounts to comprehensive policy documents reflecting socio-economic priorities. The emphasis has shifted towards outcome-based budgeting, focusing on the effectiveness of public spending. Key milestones include the introduction of planning commissions and the subsequent adoption of five-year plans, which guided resource allocation and development strategies. The concept of fiscal responsibility gained prominence in the late 20th century, leading to the enactment of fiscal responsibility legislation at both the Union and state levels. The legal and constitutional framework governing state budgets is primarily outlined in Part XII of the Constitution, dealing with finance, property, contracts, and suits. Article 266 deals with Consolidated Funds and Public Accounts of India and the states. Article 202 specifically mandates the presentation of an annual financial statement (budget) before the state legislature. These provisions ensure transparency and accountability in the management of public finances.

Latest Developments

Recent years have witnessed a greater emphasis on sustainable development goals (SDGs) in state budgets. States are increasingly aligning their budgetary allocations with the achievement of SDGs, particularly in areas such as education, health, and infrastructure. The NITI Aayog plays a crucial role in monitoring the progress of states in achieving SDGs and providing policy recommendations. The COVID-19 pandemic has significantly impacted state finances, leading to increased borrowing and fiscal deficits. States have had to prioritize healthcare spending and provide economic relief to vulnerable populations. This has necessitated a re-evaluation of budgetary priorities and a greater focus on fiscal consolidation in the medium term. The Goods and Services Tax (GST) regime has also influenced state finances, with states relying on GST compensation from the Union government to offset revenue shortfalls. Looking ahead, state budgets are expected to focus on promoting economic growth, enhancing social welfare, and investing in infrastructure development. There is a growing emphasis on leveraging technology to improve governance and service delivery. States are also exploring innovative financing mechanisms, such as public-private partnerships, to fund infrastructure projects. The creation of the AP Wealth Fund with a seed corpus of ₹100 crore, as proposed in the Andhra Pradesh Budget 2026-27, reflects this trend.

Frequently Asked Questions

1. What are the key financial figures from the Andhra Pradesh Budget 2026-27 that are important for the UPSC Prelims exam?

The Andhra Pradesh Budget 2026-27 has a total outlay of ₹3,32,205 crore. Revenue expenditure is estimated at ₹2,56,142 crore, while capital expenditure is ₹48,697 crore. School education received the highest allocation of over ₹32,300 crore. Remember these figures as direct questions about budget allocations are common in Prelims.

Exam Tip

Focus on memorizing the total budget outlay and allocations to key sectors like education and welfare. These are frequently asked in prelims.

2. What is the significance of the Andhra Pradesh Wealth Fund, and what initial investment has been allocated to it?

The AP Wealth Fund is created to boost long-term asset creation. An initial seed corpus of ₹100 crore has been allocated. Such funds are important for long-term economic development and can be a good point to mention in Mains answers related to state finances.

Exam Tip

Note the purpose and initial investment of the AP Wealth Fund. It highlights the government's focus on long-term financial planning.

3. How does the Andhra Pradesh Budget 2026-27 reflect the principles of a welfare state?

The budget reflects a welfare state through significant allocations to Backward Classes Welfare (₹23,650.88 crore), Social Welfare and EWS Welfare (₹11,118.84 crore and ₹10,699.33 crore respectively), and Reproductive and Child Health programmes (₹2,144 crore). These allocations demonstrate a commitment to social justice and equitable development, core tenets of a welfare state.

Exam Tip

When writing about welfare state principles, use specific examples from the budget allocations to strengthen your argument.

4. What are the potential implications of the Andhra Pradesh Budget 2026-27 for the common citizen?

Increased investment in school education (₹32,300 crore) can lead to improved educational outcomes and future employment opportunities. Allocations to welfare programs for Backward Classes, Social Welfare, and EWS can improve living standards. Investment in Jal Jeevan Mission (₹4,000 crore) and health infrastructure will improve access to basic services.

Exam Tip

Consider how budget allocations translate into tangible benefits for different sections of society when answering interview questions.

5. What recent developments in state budgeting, particularly concerning SDGs, are reflected in the Andhra Pradesh Budget 2026-27?

The Andhra Pradesh Budget 2026-27 aligns with the increasing emphasis on Sustainable Development Goals (SDGs) by allocating significant funds to education, health (Reproductive and Child Health programmes and Ayushman Bharat Health Infrastructure Mission), and infrastructure (Jal Jeevan Mission). This reflects a broader trend of states integrating SDGs into their budgetary priorities.

Exam Tip

Understanding the link between state budgets and SDGs is crucial for Mains answers related to development and governance.

6. What is the overall focus of the Andhra Pradesh Budget 2026-27, and how does it aim to balance welfare with fiscal responsibility?

The budget focuses on inclusive growth, welfare expansion, and long-term asset creation while maintaining fiscal discipline. The government aims to achieve this balance through a combination of revenue expenditure (₹2,56,142 crore) and capital expenditure (₹48,697 crore), prioritizing essential social sectors while investing in infrastructure for future growth.

Exam Tip

In the interview, you can discuss the challenges of balancing welfare spending with fiscal prudence, and how the budget attempts to address them.

Practice Questions (MCQs)

1. Consider the following statements regarding the Andhra Pradesh Budget 2026-27: 1. The total outlay of the budget is ₹3,32,205 crore. 2. The highest allocation is for the School Education department, exceeding ₹32,300 crore. 3. An AP Wealth Fund with a seed corpus of ₹500 crore has been proposed. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: The Andhra Pradesh Budget 2026-27 has a total outlay of ₹3,32,205 crore. Statement 2 is CORRECT: School Education received the highest allocation of over ₹32,300 crore. Statement 3 is INCORRECT: The proposed AP Wealth Fund has a seed corpus of ₹100 crore, not ₹500 crore.

2. Which of the following departments received the highest allocation after School Education in the Andhra Pradesh Budget 2026-27?

A.Social Welfare and EWS Welfare
B.Backward Classes Welfare
C.Reproductive and Child Health
D.Jal Jeevan Mission

Show Answer

Answer: B

Backward Classes Welfare received an allocation of ₹23,650.88 crore, which is the highest after School Education's allocation of over ₹32,300 crore. Social Welfare and EWS Welfare received ₹11,118.84 crore and ₹10,699.33 crore respectively. Reproductive and Child Health received ₹2,144 crore, and the Jal Jeevan Mission received ₹4,000 crore.

3. Consider the following statements regarding the Jal Jeevan Mission: 1. It aims to provide safe and adequate drinking water to all rural households by 2024. 2. The Andhra Pradesh Budget 2026-27 allocated ₹4,000 crore for the Jal Jeevan Mission. 3. It is implemented by the Ministry of Rural Development. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

Statement 1 is CORRECT: The Jal Jeevan Mission aims to provide safe and adequate drinking water to all rural households by 2024. Statement 2 is CORRECT: The Andhra Pradesh Budget 2026-27 allocated ₹4,000 crore for the Jal Jeevan Mission. Statement 3 is INCORRECT: The Jal Jeevan Mission is implemented by the Department of Drinking Water and Sanitation under the Ministry of Jal Shakti, not the Ministry of Rural Development.

4. In the context of fiscal management, what does 'revenue expenditure' generally refer to in a state budget?

A.Expenditure on creation of physical assets like roads and buildings
B.Expenditure on investments in equity shares of companies
C.Expenditure on day-to-day running of government departments and services
D.Loans given by the state government to public sector undertakings

Show Answer

Answer: C

Revenue expenditure refers to the expenses incurred for the normal functioning of the government departments and various services. This includes salaries, pensions, subsidies, and interest payments. Capital expenditure, on the other hand, is used for creating assets like infrastructure.