Andhra CM tells Finance Dept to give priority to capital expenditure

By Admin

28 Jun, 2025

In a decisive move to prioritize long-term growth and infrastructure development, Andhra Pradesh Chief Minister N. Chandrababu Naidu on Thursday, June 26, directed the Finance Department to place capital expenditure at the forefront of the state's financial strategy. He underscored that funds received from the Union government under various schemes must be primarily allocated toward capital investments that catalyze wealth creation and revenue generation.

Review Meeting Highlights

The Chief Minister conducted a comprehensive review of the State Finance Department at his camp office. The session was attended by Finance Minister Payyavula Keshav and top departmental officials. Key discussions included the state's financial status, monthly revenue and expenditure reports, and future fund allocations. CM Naidu called for detailed planning to ensure sufficient funding for both ongoing welfare initiatives and upcoming developmental projects.

Focus on Capital Investments Alongside Welfare

While acknowledging the importance of welfare programs such as pensions, the Chief Minister stressed the need to strike a balance between welfare and infrastructure development. He highlighted that capital expenditure plays a crucial role in strengthening the state's economic foundation and must be prioritized in future budgets.

Funding Through NABARD and Departmental Focus

To meet the financial needs of developmental projects, the Chief Minister advised officials to explore funding opportunities through NABARD (National Bank for Agriculture and Rural Development). Additionally, he directed that the Panchayati Raj Department’s expenditures be prioritized to enhance grassroots governance and rural infrastructure.

Major Construction Projects in Amaravati Finalized

In a significant boost to infrastructure development in the state capital Amaravati, tenders have been finalized for the construction of the Integrated State Secretariat and various Heads of Department (HOD) Towers. The Capital Region Development Authority (CRDA) has been instructed to award these contracts to L1 bidders, following government orders issued by Municipal Administration Chief Secretary S. Suresh Kumar.

The projects include:

• Integrated Secretariat and GAD Tower: Awarded to NCC Limited at a cost of ₹882.47 crore.
  
  

• HOD Towers 1 & 2: To be constructed by Shahpoorji Pallonji Group for ₹1,487.11 crore.
  
  

• HOD Towers 3 & 4: Tender awarded to Larsen & Toubro at a cost of ₹1,303.85 crore.
  
  

Strategic Vision for State Development

CM Naidu’s directive is a clear indication of his administration's renewed focus on sustainable development through high-impact infrastructure projects. By aligning capital spending with strategic objectives, the government aims to enhance public services, boost employment opportunities, and lay the foundation for long-term economic growth in Andhra Pradesh.