Sri Vijaya Puram | February 01, 2026
Tarun Karthick
The Union Government has proposed an expenditure of ₹6,735.94 crore for the Andaman & Nicobar Islands in the Union Budget 2026–27, registering an increase of ₹468.88 crore over the ₹6,267.06 crore provided in 2025–26. The increase represents a growth of about 7.5 per cent in the overall proposed budget for the Union Territory.
Of the total proposed expenditure for 2026–27, ₹6,138.08 crore has been earmarked under the Revenue head, while ₹597.86 crore is under the Capital head. In comparison, the Budget Estimates for 2025–26 had provided ₹5,711.98 crore for Revenue expenditure and ₹555.08 crore for Capital expenditure, indicating increases under both heads.
After accounting for recoveries, the net expenditure provision for 2026–27 stands at ₹6,680.94 crore, compared to a net provision of ₹6,212.06 crore in 2025–26.
Revenue vs Capital: Explained Simply
- Revenue expenditure covers day-to-day expenses such as salaries, pensions, electricity and fuel bills, medicines, subsidies and routine maintenance.
- Capital expenditure is meant for creating or upgrading long-term assets such as roads, ports, jetties, power projects, water infrastructure, hospitals and school buildings.
In simple terms, revenue keeps services running, while capital builds assets for the future.
Big Picture: What the Budget Prioritises
The 2026–27 Demand for Grants shows that the bulk of spending continues to be revenue-oriented, reflecting the cost of running essential services in a geographically isolated island territory. At the same time, the rise in capital outlay indicates selective but sustained investment in infrastructure, particularly in connectivity-related sectors such as shipping, ports and roads, along with health, education and water supply.
Andaman & Nicobar Islands – Proposed Budget 2026–27 (Sector-wise):
(This table presents key major sectors from Demand for Grants No. 52 (2026–27).
Smaller administrative and accounting heads are not listed)
(Figures in ₹ crore; Budget Estimates)
| Sector / Major Head | Revenue Expenditure | Capital Expenditure |
| Power (2801 / 4801) | 923.89 | 34.22 |
| Shipping (3052 / 5052) | 615.72 | 41.90 |
| Ports & Lighthouses (3051 / 5051) | 306.39 | 37.09 |
| Roads & Bridges (3054 / 5054) | 133.36 | 123.00 |
| Civil Aviation (3053 / 5053) | 90.88 | 4.00 |
| Medical & Public Health (2210 / 4210) | 394.48 | 30.80 |
| General Education (2202) | 834.20 | — |
| Technical Education (2203) | 33.42 | — |
| Education, Sports, Art & Culture – Capital (4202) | — | 43.71 |
| Water Supply & Sanitation (2215 / 4215) | 139.54 | 92.00 |
| Housing (2216 / 4216) | 64.40 | 17.20 |
| Urban Development (2217 / 4217) | 245.63 | 2.10 |
| Tourism (3452 / 5452) | 37.95 | 9.05 |
| Forestry & Wildlife (2406 / 4406) | 358.52 | 32.92 |
| Crop Husbandry (2401 / 4401) | 64.75 | 4.89 |
| Fisheries (2405 / 4405) | 26.04 | 5.71 |
Total (All Sectors – Gross BE 2026–27)
- Revenue: ₹6,138.08 crore
- Capital: ₹597.86 crore
- Total: ₹6,735.94 crore
