The Andhra Pradesh budget for the fiscal year 2025-26 was presented by the TDP-led NDA government. This budget prioritises welfare schemes aimed at supporting farmers, fishermen, and children. The budget totals Rs 3.22 lakh crore and includes allocations for various social sectors.
Welfare Schemes Overview
The budget focuses on several welfare initiatives. The “Talliki Vandanam” scheme offers Rs 15,000 annually to school-going children from Classes I to XII. This scheme targets both government and private school students. Additionally, farmers will receive Rs 20,000 per year under the Annadata Sukhibhava scheme. Fishermen will see their financial relief during fishing bans doubled to Rs 20,000.
Super Six Promises
The government has outlined six major promises, termed the Super Six. These include monthly aid of Rs 1,500 for women aged 19 to 59, provision of 20 lakh jobs for youth, and free bus travel for women. Other promises are three free gas cylinders for households and the aforementioned financial support for farmers and school children.
Budget Breakdown
The budget allocates Rs 31,805 crore for school education and Rs 19,264 crore for health services. The Panchayati Raj and Rural Development Department receives Rs 18,847 crore. The Municipal Administration and Urban Development Department is allocated Rs 13,862 crore. The Energy Department is set to receive Rs 13,600 crore as part of a plan to establish Andhra Pradesh as a green hydrogen hub.
Fiscal Health and Expenditure
The estimated revenue expenditure is Rs 2.51 lakh crore, with a capital expenditure of Rs 40,635 crore. The revenue deficit is projected at Rs 33,185 crore, which is 1.82% of the Gross State Domestic Product (GSDP). The fiscal deficit is expected to reach Rs 79,926 crore, accounting for 4.38% of the GSDP.
Infrastructure and Development Initiatives
The budget marks the development of Amaravati as a self-financing capital city. Financing has been secured through the Centre, World Bank, and Asian Development Bank. The government aims to transform the energy sector and enhance infrastructure through strategic investments.
Government’s Vision
Finance Minister Payyavula Keshav emphasised the government’s commitment to overcoming the financial challenges inherited from the previous regime. The vision of Swarna Andhra@2047 aims for a prosperous and equitable society. The government believes in creating a healthy, wealthy, and happy community through sustainable governance.
Questions for UPSC:
- Critically discuss the impact of welfare schemes on the socio-economic conditions of farmers in Andhra Pradesh.
- Examine the implications of fiscal deficits on the economic growth of states in India.
- What is the significance of green hydrogen initiatives in India’s energy policy? Analyse their potential benefits.
- Point out the role of women in economic development. How can government schemes enhance their participation in the workforce?
Answer Hints:
1. Critically discuss the impact of welfare schemes on the socio-economic conditions of farmers in Andhra Pradesh.
- Welfare schemes like Annadata Sukhibhava provide direct financial support, improving farmers’ income stability.
- Increased financial aid can lead to better investment in agricultural inputs and technology.
- These schemes may reduce rural poverty and improve living standards for farming families.
- Access to financial support can enhance food security and promote sustainable agricultural practices.
- Overall, welfare schemes contribute to socio-economic empowerment, enabling farmers to participate more actively in the economy.
2. Examine the implications of fiscal deficits on the economic growth of states in India.
- High fiscal deficits can lead to increased borrowing, resulting in higher interest rates and crowding out private investment.
- Persistent deficits may limit government spending on essential services and infrastructure development.
- Fiscal deficits can undermine investor confidence, affecting economic stability and growth prospects.
- However, strategic borrowing for productive investments can stimulate growth if managed effectively.
- Ultimately, the implications of fiscal deficits depend on their management and the economic context of the state.
3. What is the significance of green hydrogen initiatives in India’s energy policy? Analyse their potential benefits.
- Green hydrogen can reduce reliance on fossil fuels, contributing to energy security and sustainability.
- It supports India’s commitment to reducing carbon emissions and combating climate change.
- Green hydrogen initiatives can stimulate job creation in emerging sectors and technology development.
- This energy source can enhance energy diversification and resilience in the face of fluctuating global energy prices.
- Investing in green hydrogen can position India as a leader in renewable energy technologies and exports.
4. Point out the role of women in economic development. How can government schemes enhance their participation in the workforce?
- Women contribute to economic growth through labor participation and entrepreneurship.
- Government schemes providing financial aid can empower women, enabling them to invest in education and skills.
- Free bus travel and other support can improve access to job opportunities and reduce mobility barriers.
- Targeted programs can promote women’s health and safety, creating a conducive work environment.
- Enhancing women’s participation leads to a more inclusive economy, driving overall development and innovation.
