A.P. Cabinet ratifies ₹7,387 cr. loan for Amaravati, okays 10% road cess on vehicles, DA hike for govt. staff

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Chief Minister N. Chandrababu Naidu chairing the Cabinet gathering  astatine  the Secretariat successful  Amaravati connected  Monday.

Chief Minister N. Chandrababu Naidu chairing the Cabinet gathering astatine the Secretariat successful Amaravati connected Monday. | Photo Credit: SPECIAL ARRANGEMENT

The Andhra Pradesh State Cabinet meeting, chaired by Chief Minister N. Chandrababu Naidu, approved a bid of large argumentation decisions connected Monday, covering infrastructure development, societal welfare, administrative restructuring, and nationalist work improvements crossed the State.

Among the cardinal approvals were a ₹7,387.70 crore indebtedness from the National Bank for Agriculture and Rural Development (NABARD) nether the NIDA strategy for infrastructure projects successful Amaravati, and the instauration of a 10% “Road Safety Cess” connected centrifugal vehicles taxable to beingness tax.

Disclosing the details to the media, Revenue, Registration & Stamps Minister Anagani Satya Prasad, on with Ministers Nadendla Manohar and Satyakumar, said the Cabinet ratified authorities orders issued connected December 11, 2025, nether G.O. Ms. No. 269 by the Municipal Administration & Urban Development Department (MA&UD). These orders authorise the AP Capital Region Development Authority (APCRDA) Commissioner successful Vijayawada to unafraid the NABARD loan. Subject to a 5% warrant fee, the funds volition beryllium utilized for captious infrastructure improvement successful Amaravati. Officials person been empowered to get State guarantees, execute the indebtedness agreement, and implicit each indispensable documentation, a determination expected to accelerate the city’s municipality improvement plans.

The 10% Road Safety Cess, approved done an ordinance amending the AP Motor Vehicles Taxation Act, 1963, volition make astir ₹22.5 crore per month, oregon ₹270 crore annually. The gross volition beryllium allocated to the Andhra Pradesh Road Development Corporation for roadworthy improvement, information measures, and mishap prevention. With astir 73,000 caller vehicles registered monthly and the caller simplification of GST connected centrifugal vehicles from 28% to 18%, the cess is not expected to spot a dense fiscal load connected conveyance owners.

On the payment front, the Cabinet approved a 3.64% summation successful Dearness Allowance (DA) and Dearness Relief (DR) for State authorities employees and pensioners, effectual from January 1, 2024. The hike raises DA/DR from 33.67 % to 37.31 %, with benefits opening successful October 2025 salaries, providing fiscal alleviation amid rising surviving costs.

The authorities besides outlined plans to make Greater Vijayawada and Greater Tirupati arsenic large municipality centres. Chief Minister Naidu highlighted that 21.8 lakh ration cards are being distributed by January 9, 2026, with errors corrected and outdated photos removed. He assured important improvement for Polavaram and idiosyncratic oversight for Rayachoti’s growth.

Medical and Health Minister Satyakumar stated that contempt fiscal challenges, the authorities is correcting past mismanagement and empowering women economically, with astir ₹3 lakh crore invested successful basal infrastructure and caller roadworthy connectivity planned from Machilipatnam to Hyderabad’s Future City. 

Civil Supplies Minister Nadendla Manohar added that unprecedented allocations, including up to ₹5,000 crore nether the NTR Bharosa scheme, person been made for pensions and payment programmes, reflecting beardown authorities committedness to societal information and inclusive development.

These decisions collectively item the State government’s absorption connected balanced determination growth, infrastructure modernisation, and citizen-centric governance crossed Andhra Pradesh, they said.

EOM

Published - December 29, 2025 08:35 p.m. IST

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