The Andhra Pradesh Government Cabinet, chaired by Chief Minister N. Chandrababu Naidu, has approved a series of major policy decisions covering infrastructure, social welfare, administrative reforms and public services. Among the key decisions is the approval of a Rs 73.88 billion loan from the National Bank for Agriculture and Rural Development under the NIDA scheme for infrastructure development in Amaravati. The Cabinet also cleared the introduction of a 10 per cent Road Safety Cess on motor vehicles subject to life tax. Briefing the media, Revenue, Registration and Stamps Minister Anagani Satya Prasad, along with Civil Supplies Minister Nadendla Manohar and Medical and Health Minister Satyakumar, said the Cabinet ratified government orders issued on December 11, 2025, authorising the Andhra Pradesh Capital Region Development Authority Commissioner in Vijayawada to secure the NABARD loan. Subject to a 5 per cent guarantee fee, the funds will be used for critical infrastructure works in Amaravati, with officials empowered to obtain State guarantees, execute loan agreements and complete related documentation to fast-track urban development. The newly approved Road Safety Cess, introduced through an ordinance amending the Andhra Pradesh Motor Vehicles Taxation Act, 1963, is expected to generate around Rs 0.23 billion per month, or approximately Rs 2.7 billion annually. The proceeds will be channelled to the Andhra Pradesh Road Development Corporation for road upgrades, safety interventions and accident prevention. With about 73,000 new vehicles registered each month and the reduction of GST on motor vehicles from 28 per cent to 18 per cent, the government said the cess will not significantly burden vehicle owners. On the welfare front, the Cabinet approved a 3.64 per cent increase in Dearness Allowance and Dearness Relief for State government employees and pensioners, effective January 1, 2024. The revision raises DA and DR from 33.67 per cent to 37.31 per cent, with monetary benefits to be reflected from October 2025 salaries, offering relief amid rising living costs. The Cabinet also endorsed plans to develop Greater Vijayawada and Greater Tirupati as major urban centres. Chief Minister Naidu said 2.18 million ration cards are being distributed by January 9, 2026, after correcting errors and removing outdated photographs. He also assured focused development for Polavaram and said he would personally monitor growth initiatives in Rayachoti. Medical and Health Minister Satyakumar said that despite fiscal constraints, the government is addressing past mismanagement and strengthening women’s economic empowerment, noting that nearly Rs 3 trillion has been invested in basic infrastructure. He added that new road connectivity is planned between Machilipatnam and Hyderabad’s Future City. Civil Supplies Minister Nadendla Manohar said unprecedented allocations, including up to Rs 50 billion under the NTR Bharosa scheme, have been earmarked for pensions and welfare programmes, reflecting the government’s commitment to social security and inclusive development. The Cabinet decisions underscore the State’s focus on balanced regional growth, infrastructure modernisation and citizen-centric governance across Andhra Pradesh.