Andhra Pradesh Budget 2026-27 Worth ₹3.32 Lakh Crore — What's in for Women, Govt Employees, Health, Agriculture

•February 14, 2026

Mint (India) – Economy•Feb 14, 2026

Why It Matters

The massive outlay signals Andhra Pradesh’s aggressive growth agenda, directly influencing labor costs, gender‑inclusive development, and food security across the region. Its fiscal discipline combined with sector‑specific spending could reshape investment dynamics in South India.

Key Takeaways

•₹3.32 lakh crore budget targets 8% growth
•Health outlay rises 15% to improve hospitals
•Women schemes receive ₹12,000 crore funding
•Govt employee salaries increased by 10% across board
•Agriculture subsidies expanded for millets and pulses

Pulse Analysis

Andhra Pradesh’s FY 2026‑27 budget, valued at ₹3.32 lakh crore, underscores the state’s ambition to outpace national growth averages. By keeping the projected fiscal deficit under 4%, the government signals fiscal prudence while still allocating record‑high capital expenditure for infrastructure projects. This balanced approach mirrors recent trends among high‑growth Indian states that prioritize both development spending and debt sustainability, positioning AP as a competitive destination for private capital.

A standout feature of the budget is its focus on gender‑inclusive growth. The ₹12,000 crore women’s empowerment fund will finance entrepreneurship grants, skill‑development centers, and safety initiatives, aligning with the central government’s push for women’s economic participation. Simultaneously, a 10% salary hike for government employees aims to curb attrition and boost service delivery, reflecting a broader trend of public‑sector wage reforms in Indian states seeking to improve morale and efficiency.

Health and agriculture receive equally aggressive boosts. A 15% increase in health outlay is earmarked for new district hospitals, digital health platforms, and pandemic preparedness, addressing long‑standing gaps in rural healthcare access. In agriculture, expanded subsidies for millets, pulses, and climate‑resilient practices aim to diversify crop patterns and enhance farmer incomes. Together, these measures not only strengthen the state’s social safety net but also lay the groundwork for sustainable economic expansion, making Andhra Pradesh a focal point for investors tracking India’s sub‑national growth engines.