The Union Budget 2025-26 addressed key development priorities of Andhra Pradesh Government by allocating funds for the long-pending Polavaram Multipurpose irrigation project, Visakhapatnam Steel Plant and Vizag Port.
While ₹5,936 crore was allocated for Polavaram for the upcoming fiscal, an additional balance grant of ₹12,157 crore has also been given following the acceptance of the revised estimates of the project cost sent by the State Government to the Centre.
The revival of the Visakhapatnam Steel Plant is important for the ruling NDA Government as it is a politically sensitive issue for the people of the State who have been protesting against a disinvestment proposal for the plant. The Finance Minister Nirmala Sita Raman earmarked ₹3,295 crore for the project. The Visakhapatnam port has been given ₹730 crore.
The focus on the port city, which was to be made an executive capital by the previous Y S R Congress Party Government in the State, has been in line with the NDA government’s commitment to developing the city as the financial and fintech capital of the State along with industries and logistics, while the new capital would be built in Amaravati, as decided earlier.
Other allocations for the State included ₹162 crore for health, ₹186 crore for Zero Budget Natural Farming, ₹375 crore for learning transformation operation (skill development), ₹240 crore for roads and buildings, and ₹242 crore for irrigation other than the Polavaram project.
Budgetary support for skills and roads is vital for Andhra Pradesh in view of its focus on skill development based on skill census and efforts to improve the condition of roads, which are stated to be in a deplorable condition.
Including the allocations made to the State in the Union Budget 2024-25, presented in July last year, N Chandrababu Naidu-led NDA Government in the State, appears to have managed to set the development works promised in the elections last year in motion.
The Centre allocated approximately ₹50,475 crore for the State for FY 2024-25, including ₹15,000 crore for the construction of the capital city, Amaravati, which had already commenced.
The Union Budget 2025-26 addressed the key development priorities of the Andhra Pradesh Government by allocating funds for the long-pending Polavaram Multipurpose irrigation project, Visakhapatnam Steel Plant, and Vizag Port.
While ₹5,936 crore was allocated for Polavaram for the upcoming fiscal, an additional balance grant of ₹12,157 crore has also been given following the acceptance of the revised estimates of the project cost sent by the State Government to the Centre.
The revival of Visakhapatnam Steel Plant is important for the ruling NDA Government as it is a politically sensitive issue for the people of the State who have been protesting against a disinvestment proposal for the plant. Finance Minister Nirmala Sita Raman earmarked ₹3,295 crore for the project, and the Visakhapatnam port has been given ₹730 crore.
Other allocations for the State included ₹162 crore for health, Rs 186 crore for Zero Budget Natural Farming, ₹375 crore for learning transformation operation (skill development), ₹240 crore for roads and buildings, and ₹242 crore for irrigation other than the Polavaram project.
Including the allocations made to the State in the Union Budget 2024-25, presented in July last year, N Chandrababu Naidu-led NDA Government in the State appears to have managed to set the development works promised in the elections last year in motion. The Centre allocated approximately ₹50,475 crore for the State for FY 2024-25, including ₹15,000 crore for the construction of the capital city Amaravati, the construction of which had already commenced.
While avoiding any comment on allocations for the State, Chief Minister N Chandrababu Naidu `welcomed’ the budget as it `reflected the vision of Prime Minister Narendra Modi for Vikasit Bharat.’
The opposition YSRCP, however, alleged that the NDA partners, TDP and Jana Sena, ‘failed’ to get much-needed financial support from the Centre in the budget as the allocations were for previously announced schemes , and fresh assistance was given by the Centre for the development of the State.