AMARAVATI: The Andhra Pradesh government on Monday presented a budget of Rs 2.94 lakh crore for the 2024-25 fiscal year, with Finance Minister Payyavula Keshav asserting it was aimed at “restarting the financial wheels of the state.”
The budget allocated Rs 16,739 crore for Panchayat Raj and Rural Development, a portfolio held by Deputy CM Pawan Kalyan; Rs 29,909 crore for school education; and Rs 18,421 crore for healthcare and family welfare.
Presenting the NDA’s maiden budget in the Assembly, with a little over four months remaining in the fiscal year, Keshav reported an estimated revenue deficit of Rs 34,743 crore (2.12 per cent of the GSDP) and a fiscal deficit of ₹68,743 crore (4.19 per cent of the GSDP) for the year.
“The budget proposals I am presenting today were made with the state’s financial position in consideration and aim to revive it by creating wealth. This is intended to restart the financial wheels of the state,” said Keshav, addressing the Assembly’s second session under the new NDA government.
The state government presented a Rs 2.94 lakh crore budget for FY25, with revenue expenditure estimated at Rs 2.36 lakh crore and capital expenditure at Rs 32,713 crore. Emphasising the NDA government’s mission to eradicate poverty and extend welfare to marginalised groups, the finance minister allocated Rs 18,497 crore for the SC component, Rs 7,557 crore for the ST component, Rs 39,007 crore for the BC component, and Rs 4,376 crore for the minorities welfare component.
Allotting Rs 11,490 crore to the Department of Municipal Administration & Urban Development, Keshav stated the government’s commitment to “planned and sustainable urban development”. Keshav further noted that the “dream capital city of Amaravati” is progressing after being abandoned for five years.
For the Water Resources Department, he allocated Rs 16,705 crore, saying that the N Chandrababu Naidu-led government places a high priority on irrigation and is developing a comprehensive new Water Policy to bring water to “every possible field.”
Keshav also allocated Rs 8,207 crore for the Energy Department. He said a new comprehensive Andhra Pradesh Integrated Clean Energy Policy 2024 has been introduced to “promote sustainability, energy transition, and clean energy technologies” in the state.
Keshav also allocated Rs 9,554 crore to the Department of Transport, Roads, and Buildings, including allocations to the State Disaster Mitigation Fund and State Disaster Response Fund. Further, he criticised the previous YSRCP government for its “gross negligence” in maintaining and repairing roads over the past five years, and added that reconstruction efforts are underway.
According to the budget estimates, the state’s outstanding public debt for 2024-25 stands at Rs 5.6 lakh crore, including open market loans of Rs 4.16 lakh crore, central government loans of Rs 45,369 crore, and loans from other institutions totalling Rs 20,808 crore. Additional debt components include small savings of Rs 5,506 crore, provident funds of Rs 31,177 crore, deposits and reserve funds of Rs 40,772 crore, and an unapportioned amount of Rs 4,423 crore. Public debt as a percentage of GSDP stands at 34.14 per cent. Government guarantees outstanding for 2023-24 are estimated at Rs 1.55 lakh crore.
Keshav alleged that the state’s financial position was on the “verge of collapse” during the YSRCP regime. The opposition party boycotted the session. Meanwhile, former finance minister and YSRCP leader B Rajendranath wondered why it took the state government five months to table the budget. “They (NDA govt) presented the budget on a negative note, rather than winning the people’s praise.
They referred to the past government (YSRCP) 21 times in the budget speech, even after five months in office,” Rajendranath said, at a press conference in Tadepalli. Taking on the TDP-led dispensation, he said while the government reported a debt of Rs 6.46 lakh crore until March 31, 2024, several public debt figures attributed to the YSRCP government reportedly reached Rs 14 lakh crore.
Claiming that the “World Bank is backing out of the Amaravati greenfield capital project because it is located on a floodplain”, Rajendranath expressed concerns over the “unclear responsibility” for the related debt. In addition, he said that the budget lacked “sufficient funds for welfare schemes” promised during the election campaign.
