Andhra Pradesh Unveils Rs 2.94 Lakh Crore Budget for FY25, Aims to Revitalise
Key Highlights:
On November 11, 2024, Andhra Pradesh’s Finance Minister, Payyavula Keshav, presented the state’s budget for the fiscal year 2024-25, totaling Rs 2,94,427.25 crore. The budget is designed to address fiscal challenges and revitalize the economy, especially after the stress caused by the previous administration.
Budget Breakdown:
- Revenue Expenditure: Rs 2,35,916.99 crore
- Capital Expenditure: Rs 32,712.84 crore
- Revenue Deficit: Rs 34,743.38 crore (2.12% of GSDP)
- Fiscal Deficit: Rs 68,742.65 crore (4.19% of GSDP)
The state faces higher-than-normal deficits, indicating the need for recovery. Nonetheless, Keshav emphasized that the budget would “restart the financial wheels of the state,” boosting economic growth in the long run.
Key Allocations and Sectors:
- Panchayat Raj and Rural Development:
- Rs 16,739 crore
The budget dedicates significant funds to rural development, under the supervision of Deputy Chief Minister Pawan Kalyan.
- Rs 16,739 crore
- Education:
- Rs 29,909 crore
A substantial portion of the budget is focused on improving school education, infrastructure, and quality.
- Rs 29,909 crore
- Healthcare and Family Welfare:
- Rs 18,421 crore
Healthcare is a priority, with increased funding to address public health issues and improve facilities.
- Rs 18,421 crore
Minister’s Address:
Keshav addressed the financial challenges faced by the state, citing the fiscal stress under the previous YSRCP administration. According to the Finance Minister, the budget was crafted with a focus on fiscal health, aiming to provide a roadmap for economic recovery and growth.
Economic Revival Strategy:
The budget targets economic stagnation by focusing on infrastructure, social welfare, and education. It prioritizes sectors like rural development, healthcare, and education, ensuring long-term growth and laying the foundation for recovery.
Our Take:
The Rs 2.94 lakh crore budget signals Andhra Pradesh’s determination to revive its economy. With substantial investments in key sectors such as education, healthcare, and rural development, the state aims for both immediate recovery and long-term growth. However, the fiscal and revenue deficits remain concerns, requiring strategic management for financial stability.
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