The Andhra Pradesh government has significantly increased outlay for irrigation and river-linking works in its 2026–27 financial plan, earmarking ₹18,223 crore for the Water Resources Department. The expanded allocation signals a renewed push to complete delayed projects, strengthen drought resilience and support agrarian and regional growth.
The Andhra Pradesh Water Resources Budget marks a rise of over ₹3,400 crore compared to last year’s revised estimates, reflecting a capital-intensive approach. Of the total allocation, more than ₹17,400 crore has been committed to capital expenditure, underscoring the State’s focus on long-gestation infrastructure assets such as dams, lift irrigation systems and canal modernisation.Finance department officials described irrigation as central to economic expansion, particularly in water-stressed districts. Budget documents indicate that marquee projects, including Polavaram Project, will receive substantial funding support this fiscal year. The multipurpose national project has been allocated over ₹6,100 crore, aimed at accelerating structural components and settling pending contractor liabilities.
Beyond Polavaram, nearly ₹9,900 crore has been distributed across other major irrigation schemes. Regional allocations reflect a focus on arid zones, with districts in Rayalaseema and parts of coastal Andhra receiving targeted funding to stabilise irrigation supply. Minor irrigation schemes, often critical for smallholder farmers, have also been assigned dedicated resources.Water economists note that the capital-heavy Andhra Pradesh Water Resources Budget could have multiplier effects if projects are executed on schedule. Improved irrigation coverage typically enhances crop intensity, supports horticulture expansion and reduces climate vulnerability in semi-arid belts. The government has also outlined plans to integrate irrigation support with proposed agro-processing and horticulture clusters, linking water infrastructure to value-chain development.
Progress updates shared by officials indicate ongoing work on major components of Polavaram, including structural barriers and spillway systems, alongside the revival of stalled canal networks. In addition, lift irrigation initiatives drawing from the Krishna basin have reportedly improved supply in select regions.Urban planners highlight that large irrigation investments also influence urban growth corridors. Reliable bulk water supply can support industrial estates, logistics parks and peri-urban housing development, particularly in emerging nodes around Vijayawada and other growth centres.
However, experts caution that fiscal allocation alone does not guarantee outcomes. Timely land acquisition, contractor payments, environmental compliance and inter-state coordination remain critical variables. Climate scientists also stress that future water planning must incorporate rainfall variability and basin-level sustainability to avoid over-extraction.The Andhra Pradesh Water Resources Budget therefore represents more than an accounting shift. It reflects a strategic attempt to position irrigation as both a rural stabiliser and an economic enabler. The effectiveness of this approach will depend on execution discipline and the integration of water infrastructure with long-term climate adaptation strategies.
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Andhra Pradesh Water Resources Budget Jumps
