Andhra Pradesh's Finance Minister Payyavula Keshav unveiled a transformative budget of Rs 2,94,427.25 crore for the fiscal year 2024-25. This budget, which places an emphasis on welfare, rural development, education, and healthcare, is a part of the state's broader strategy to revitalize its economy and restore fiscal discipline. The budgetary plan prioritizes inclusive growth across sectors to ensure equitable wealth distribution and aims to address financial challenges while emphasizing public welfare and infrastructure.

Total Budget Overview and Deficits

The total budget allocation for Andhra Pradesh this year stands at Rs 2.94 lakh crore. The revenue expenditure is estimated at Rs 2,35,916.99 crore, while capital expenditure is pegged at Rs 32,712.84 crore. The revenue deficit has been estimated at Rs 34,743.38 crore, accounting for 2.12% of the state's GSDP. Meanwhile, the fiscal deficit is expected to reach Rs 68,742.65 crore, approximately 4.19% of the GSDP.

Sectoral Allocations

This budget dedicates significant resources to key public service sectors:

• Education: Rs 29,909 crore is allocated to strengthen school education, covering improvements in infrastructure and quality of learning.
• Healthcare: With a budget of Rs 18,421 crore, healthcare and family welfare programs are set to expand to meet growing demands in public health.
• Rural Development: Rs 16,739 crore has been allocated to Panchayat Raj and Rural Development. Deputy Chief Minister Pawan Kalyan will oversee the effective distribution and application of these resources.

Focus Areas and Inclusive Growth

The budget's primary goal is to ensure fiscal stability, enhance state wealth, and promote inclusive growth. The administration emphasizes welfare schemes, particularly for marginalized communities, including Scheduled Castes (SC), Scheduled Tribes (ST), and Backward Castes (BC), which form a substantial portion of the state's population. Welfare programs targeting these groups are part of a larger plan to uplift socio-economically disadvantaged communities.

Agriculture and Rural Development Initiatives

Recognizing the importance of agriculture to Andhra Pradesh’s economy, the budget has earmarked Rs 43,402 crore for agricultural development. This allocation will fund:

• Fertilizer supply through Primary Agriculture Societies, with Rs 40 crore set aside for subsidies.
• Promotion of agri-mechanization and soil testing, aimed at supporting farmers and increasing productivity.

Infrastructure Development

Investments in infrastructure are central to the state's economic revival strategy. Major allocations include:

• Roads and Buildings: Rs 9,554 crore to enhance the state’s connectivity and road infrastructure.
• Urban Development: Rs 11,490 crore to boost urban infrastructure, including improvements in sanitation, public amenities, and sustainable development of urban areas.

Welfare Allocations for Social Upliftment

• BC Welfare: A major allocation of Rs 39,007 crore to uplift the Backward Castes through targeted welfare programs.
• ST Welfare: Rs 7,557 crore dedicated to improving conditions and opportunities for Scheduled Tribes.
• Skill Development: Rs 1,215 crore for enhancing skill development programs to promote employment and build a skilled workforce in the state.

Fiscal Strategy and Financial Stability

Finance Minister Payyavula Keshav emphasized fiscal prudence and aims to gradually stabilize the state's financial health. In his address, he critiqued the fiscal approach of the previous administration led by the YSR Congress Party (YSRCP), highlighting the budget’s objective to recover from what he described as "financial mismanagement." Specific measures, such as fertilizer subsidies, seed supply provisions, and an agriculture advisory, reflect a long-term view of achieving both economic recovery and sustainable fiscal growth.

The Andhra Pradesh government’s strategic fiscal allocations for welfare, rural development, infrastructure, and skill development signal a comprehensive approach to building a more equitable and prosperous state. This year’s budget aims to ensure a balanced approach to growth, focusing on inclusive progress across sectors that impact all citizens.

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