Balancing the budget

Vijayawada: All eyes are on the NDA alliance government as the budget session commences on Monday. The key question remains: How will the government balance development and welfare schemes?

According to sources, the total expenditure is expected to be in the range of Rs 3.15 lakh crore to Rs 3.25 lakh crore. In his first interim budget presented in November 2024, after the alliance government came to power, Finance Minister Payyavula Keshav had set an outlay of Rs 2.94 lakh crore for 2024-25.

The full-fledged budget for 2025-26 is scheduled to be tabled on Friday. The budget session is likely to last up to 20 days.

Chief Minister N Chandrababu Naidu has stated that the state inherited a debt of Rs 9.74 lakh crore, which has posed significant financial challenges, surpassing even the losses incurred due to state bifurcation. The government has been striving to restore the battered economy and put it back on track.

Despite being in office for eight months, the NDA government has yet to implement several key welfare schemes promised under the 'Super Six' programme. These include free travel for women in state-run RTC buses, a direct benefit transfer of Rs 20,000 to each farmer under the ‘Annadata Sukhibhava’ scheme, Rs 15,000 assistance for women under the ‘Thalliki Vandanam’ scheme (aimed at supporting mothers sending children to school), and an unemployment allowance of Rs 3,000 for jobless youth.

The Opposition YSR Congress Party (YSRCP) is preparing to raise these issues during the Governor’s address on Monday, when Governor S Abdul Nazeer will address both Houses of the legislature. The YSRCP has also announced its intention to boycott the entire session.

Meanwhile, the government has successfully secured a loan of Rs 15,000 crore from multilateral agencies for the development of Amaravati. However, it still needs to explore additional avenues for wealth creation and revenue generation, especially as tenders for construction projects worth over Rs 42,000 crore have already been issued. Recent floods and subsequent damage to crops and property have further exacerbated the state’s financial woes.

As per the Budget 2025-26 estimates, Andhra Pradesh is expected to receive approximately Rs 38,000 crore from the central government as part of its share in centrally sponsored projects. The state government, in turn, must allocate its share for the implementation of these schemes, which could amount to Rs 25,000 crore, depending on the nature of the projects.

With pressing financial constraints and pending welfare commitments, the upcoming budget session will be crucial in determining the fiscal strategy of the NDA government in Andhra Pradesh.