Fiscal reset underway as AP posts double-digit growth: Guv

Amaravati: Andhra Pradesh has begun to steady its finances after years of fiscal strain, Governor S Abdul Nazeer said on Wednesday, projecting cautious optimism as he addressed a joint sitting of the Legislature at the start of the budget session.

The State’s Gross State Domestic Product (GSDP) has risen to Rs 17.62 lakh crore in 2025-26 estimates, up from Rs 15.91 lakh crore last year, registering a nominal growth of 10.75 per cent. Per capita income has increased to Rs 2.95 lakh from Rs 2.66 lakh.

The Governor said the government moved to stabilise finances, reduce borrowing costs and prioritise reforms despite “substantial inherited liabilities.” Growth, he noted, was driven by agriculture and allied sectors at 7.83 per cent, industry at 9.73 per cent, and services at 12.94 per cent.

Framing the alliance government’s agenda under the banner of Swarna Andhra 2047, he said the administration had issued seven white papers and focused on governance reforms in its initial months. Welfare and development, he stressed, are being pursued together.

Flagship welfare schemes under the “Super Six” umbrella account for an annual outlay of about Rs 33,000 crore. Over 63 lakh beneficiaries receive NTR Bharosa pensions. More than 66 lakh students get aid under Thalliki Vandanam. Nearly 47 lakh farmers benefit from Annadata Sukhibhav, while 1.08 crore families receive free LPG cylinders under Deepam 2.0. The government has also filled 15,941 teacher posts and recruited 5,757 constables.

On health care, the Governor outlined a Universal Health Policy offering insurance cover up to Rs 2.5 lakh per person and cashless treatment up to Rs 25 lakh for 1.43 crore poor families.

Infrastructure remains central. The government aims to complete the Polavaram project by June 2027. Amaravati’s capital works have resumed, alongside plans for metro rail in Visakhapatnam and Vijayawada. The State is also pushing port-led development, MSME parks, and industrial corridors.

Highlighting emerging sectors, the Governor said Andhra Pradesh is positioning itself in IT, quantum computing, green hydrogen and electronics manufacturing. Investment proposals worth Rs 13.25 lakh crore were signed at a recent CII summit, with potential to generate over 16 lakh jobs. Despite financial pressures, he said, the government remains focused on “a healthy, wealthy and happy Andhra Pradesh.”