Sun Feb 01 13:10:41 UTC 2026: ### Andhra Pradesh Reacts to Union Budget 2026-27: Mixed Signals Emerge

The Story:
The Union Budget 2026-27 has triggered varied responses in Andhra Pradesh. While IT Minister Nara Lokesh lauded the budget’s alignment with India’s growth aspirations and potential benefits for Andhra Pradesh through initiatives like the Critical Minerals Corridor and electronics manufacturing, former Finance Minister Yanamala Ramakrishnudu criticized the budget’s financial devolution to states and its perceived neglect of the poor. The divergence highlights concerns over fiscal federalism and social equity within the state.

Key Points:

  • IT Minister Nara Lokesh praised the Union Budget 2026-27 for its focus on critical minerals, high-speed rail, electronics manufacturing, and tourism.
  • Mr. Lokesh believes Andhra Pradesh will significantly benefit from the budget, accelerating investments and job creation.
  • Former Finance Minister Yanamala Ramakrishnudu criticized the acceptance of the 16th Finance Commission’s recommendation of 41% fund devolution to states, deeming it insufficient.
  • Mr. Ramakrishnudu also flagged the budget’s silence on the fiscal burden on states from the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission-Gramin (VB-G RAM-G).
  • He stated that the budget gives little importance to microeconomics and the poor.

Critical Analysis:
The contrast in reactions reflects the ongoing tension between the ruling party’s alignment with the central government and the opposition’s concerns about state autonomy and fiscal responsibility. The historical context reveals a broader national discussion about the budget’s impact on various states, with concerns raised in Tamil Nadu about insufficient allocations and in Visakhapatnam about benefits to housing and infrastructure. Farmer groups at the national level also have concerns about the agriculture sector. Therefore, Andhra Pradesh’s reaction is part of a larger pattern of localized assessments of the Union Budget 2026-27.

Key Takeaways:

  • The Union Budget 2026-27 has sparked debate regarding its benefits for individual states versus the overall national economy.
  • The allocation of funds between the central government and the states remains a contentious issue, with concerns about state autonomy.
  • Social equity and the impact on the poor are key considerations in evaluating the budget’s effectiveness.
  • Infrastructure development and focused sectors are the budget’s strong points.

Impact Analysis:
The differing viewpoints will likely shape policy debates and influence the implementation of the budget in Andhra Pradesh. Nara Lokesh’s positive outlook may lead to focused efforts on leveraging central schemes, while Yanamala Ramakrishnudu’s critique could fuel demands for greater state autonomy and fiscal adjustments. The long-term impact will depend on the actual distribution of funds and the effectiveness of the VB-G RAM-G mission, in particular the impact of this mission on the fiscal health of the states.

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