The government of Andhra Pradesh has declared Amaravati to be the capital city which will serve the needs of its citizens. Finance Minister Payyavula Keshav delivered the budget proposal for Andhra Pradesh during his presentation to the Legislative Assembly. The government plans to develop Amaravati as the public capital according to his speech.
The government is executing capital development projects at an accelerated pace according to him. The organization collects funds from multiple financial institutions. The development model operates as a self-sustaining system.
The authorities have granted their permission for 97 different projects. The total estimated cost of these works is ₹57,868 crore. The minister described these approvals as clear evidence of the government’s dedication to building Amaravati.
Support from the Central Government
The Finance Minister expressed gratitude to Prime Minister Narendra Modi for supporting the development of Amaravati. The Prime Minister initiated the legal process which will establish Amaravati as the permanent capital of Andhra Pradesh.
Union Finance Minister Nirmala Sitharaman approved an additional ₹4,000 crore funding which comes from the Urban Infrastructure Development Fund (UIDF) during the last two years.
Urban Development Projects Across the State
Development projects are being implemented not only in Amaravati but also in other cities and towns across the state.
506 projects currently execute their work under the AMRUT 2.0 scheme. These projects cover 117 urban and local bodies.
The organization implements additional projects through partnerships with the Urban Infrastructure Development Fund (UIDF) and the Asian Infrastructure Investment Bank (AIIB).
The government plans to finish all project work before the end of December 2027.
Metro Rail Projects in Major Cities
The government plans to introduce modern metro rail systems in major cities such as Visakhapatnam and Vijayawada.
The Finance Minister stated that these metro projects will improve urban transport infrastructure. The projects will establish better transportation links which will drive economic development.
Housing for Economically Weaker Sections
The government has set a target to provide 25 lakh housing plots and houses to families from economically weaker sections.
The Pradhan Mantri Awas Yojana (Urban) scheme and NTR Nagars will provide these houses to residents.
The primary aim of the program exists to assist eligible households in becoming homeowners. The government aims to fulfill this goal in a phased and structured manner.
Key Budget Highlights (AP Budget 2026–27)
The government approved 97 capital development projects.
The government allocated ₹57,868 crore for capital works.
AMRUT 2.0 will implement 506 projects across 117 urban locations.
The government approved an extra ₹4,000 crore funding for UIDF.
Visakhapatnam and Vijayawada will receive plans to develop metro rail systems.
The project plans to construct 25 lakh homes for families who belong to economically weak sections.
The project needs to finish all work before the deadline which is set for December 2027.
