Andhra Pradesh Budget 2024-25: Focus on Rebuilding, Welfare, and Growth

In his budget speech today, Finance Minister Sri Payyavula Keshav outlined a bold vision for the fiscal year 2024-25, emphasising the state’s dire economic condition due to the previous regime’s mismanagement. The budget, pegged at Rs. 2,94,427 crore, aims to revive key sectors, address financial mismanagement, and provide welfare to marginalised communities, setting a course for growth and stability under the leadership of Chief Minister Sri Nara Chandrababu Naidu.

Minister Keshav began by noting the severe financial crisis the state inherited, pointing to a staggering debt burden and misallocation of resources that crippled essential sectors like irrigation, energy, and infrastructure. He described the state’s economy as being on the brink of collapse, but expressed confidence that with the people’s support and Naidu’s visionary leadership, the state will rise again.

The ruling coalition’s resounding victory in the 2024 elections, winning 57% of the vote share and securing 164 out of 175 assembly seats, was framed as a clear rejection of the previous government's policies. Minister Keshav credited Naidu’s leadership for transforming Andhra Pradesh into an IT hub, attracting major industrial investments, and turning the state into a power-surplus region during his tenure from 2014-19. However, Minister Keshav lamented that these achievements were undone by the 2019-2024 government, which implemented the controversial three capitals plan, cancelled power purchase agreements, and stalled major projects like the Polavaram irrigation project.

Economic Recovery and Welfare Focus

Minister Keshav criticised the economic mismanagement of the previous government, including halted capital expenditures, resource diversion, and the accumulation of over Rs. 1.35 lakh crore in unpaid liabilities. He underscored the need to reboot the state’s economic engine through wealth creation, starting with the agriculture sector, which remains a cornerstone of Andhra Pradesh’s economy. Key initiatives like the “Annadatha Sukhibhava” scheme, which provides investment support to farmers, and “Polam Pilusthondi”, aimed at improving agricultural productivity, were highlighted. A budgetary allocation of Rs. 11,855 crore has been proposed for agriculture and allied sectors.

Emphasising the government's commitment to both welfare and development, Minister Keshav outlined several initiatives aimed at uplifting marginalised communities. The government has raised social security pensions from Rs. 3,000 to Rs. 4,000 per month, benefiting over 64 lakh pensioners. Financial assistance for students and support for traditional occupational groups such as weavers and artisans are also a priority. Notably, the government has earmarked Rs. 18,497 crore for Scheduled Castes (SCs), Rs. 7,557 crore for Scheduled Tribes (STs), Rs. 39,007 crore for Backward Classes (BCs), and Rs. 4,376 crore for minorities.

Women’s Empowerment and Skill Development

Minister Keshav also highlighted the state’s robust focus on women’s empowerment and child welfare. Drawing inspiration from Dr. B.R. Ambedkar’s philosophy, he expressed the government’s commitment to uplifting women, particularly through initiatives like Deepam 2, which offers free LPG cylinders to women, and free bus travel for women to encourage workforce participation. The government has proposed Rs. 4,285 crore for welfare programs aimed at women, children, the differently-abled, and senior citizens.

On skill development, Minister Keshav celebrated Andhra Pradesh’s pioneering efforts in skill enhancement, notably through the Skill Census initiative, which aims to match workforce skills with industry needs and create 20 lakh new job opportunities. For 2024-25, Rs. 1,215 crore has been allocated to further strengthen the state’s skill development infrastructure.

Education and Healthcare Reform

In the field of education, Minister Keshav outlined plans to reduce school drop-out rates and improve access to quality education. The Thalliki Vandanam scheme, designed to assist mothers of schoolchildren, and the Mega DSC recruitment for 16,347 teacher vacancies, are expected to improve educational outcomes. The government has allocated Rs. 29,909 crore to the School Education Department for the coming fiscal year.

For higher education, the government plans to strengthen state universities, fill vacant faculty positions, and establish three Knowledge Cities in Amaravati, Tirupati, and Visakhapatnam. Rs. 2,326 crore has been set aside for the Department of Higher Education.

Minister Keshav also stressed the importance of healthcare, with initiatives like the STEMI Program for cardiovascular diseases, a statewide cancer screening program, and improved infrastructure for medical facilities. The Health Department has been allocated Rs. 18,421 crore for the 2024-25 year.

Urban and Rural Development

The government is focusing on revitalising both urban and rural areas. Under the Municipal Administration & Urban Development budget of Rs. 11,490 crore, key initiatives include the creation of GIS-based master plans for towns with populations of 50,000 to 99,999, along with water supply schemes and the rejuvenation of water bodies under AMRUT 2.0. The government is also committed to providing affordable food through Anna Canteens in both urban and rural areas.

For rural development, significant investments are being made in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), focusing on sustainable livelihoods and durable assets in rural areas. The Panchayat Raj and Rural Development Department has been allocated Rs. 16,739 crore.

Infrastructure, Energy, and Water Resources

The budget includes ambitious plans for transportation and infrastructure, with a focus on repairing pothole-ridden roads and strengthening connectivity through projects like the Amaravati Outer Ring Road and several National Highway projects. Rs. 9,554 crore has been allocated to the Transport, Roads and Buildings Department.

Minister Keshav also touched upon the state’s efforts to address the energy crisis, emphasising the restoration of the energy sector through low-cost, 24x7 power supply and renewable energy initiatives. The proposed budget for the Energy Department is Rs. 8,207 crore.

For water resources, the government’s top priority is the completion of the Polavaram Irrigation Project, with a proposed Rs. 16,705 crore allocation for the sector, alongside projects to ensure water security for agriculture, drinking, and industrial needs.

Finance Minister Keshav concluded with vision for a "Swarna Andhra"

Minister Keshav concluded his speech by reiterating the government’s vision for a prosperous, inclusive Andhra Pradesh—"Swarna Andhra"—where every family’s dream is realised through quality healthcare, education, and economic opportunities. With the return of strong leadership under Chief Minister Naidu, the state is poised for a new phase of recovery and growth, overcoming the challenges of the past and building a brighter future for its citizens.

The proposed 2024-25 budget is a clear step toward achieving these goals, with an emphasis on balancing welfare, infrastructure development, and economic revival.