Modi's Allies Rewarded: Budget 2024 Brings Special Bonanza For Andhra, Bihar
The union budget 2024-25 brings a bonanza of Rs 26,000 crore for Bihar and Rs 15,000 crore for Andhra Pradesh, allocated by the Modi government
In a move seen as a strategic outreach to woo key alliance partners, Finance Minister Nirmala Sitharaman under the Modi government has declared a slew of developmental projects for Bihar and Andhra Pradesh in the Union Budget 2024. The two states, ruled by the JD(U) and TDP respectively, are crucial for the BJP's prospects in the upcoming elections.
For Bihar, Sitharaman unveiled a Rs 26,000 crore package, including Rs 21,400 crore for power projects, such as a new 2400 MW power plant at Pirpainti. The state will also see the construction of new airports, medical colleges, and sports infrastructure. The Centre will expedite Bihar's requests for external assistance from multilateral development banks.
In her budget speech, Sitharaman also talked about the development of Gaya as an industrial node on the Amritsar-Kolkata industrial corridor, which will "catalyse the development of the eastern region." Road connectivity projects, including the Patna-Purnea expressway and an additional two-lane bridge over the Ganga in Buxar, will also be supported, she added.
This largesse comes a day after the Centre rejected Bihar's demand for 'Special Category Status'. However, Sitharaman assured that the union government will arrange financial assistance to Bihar through aid from multilateral development agencies.
In a similar move, Sitharaman declared about Rs 15,000 crore for Andhra Pradesh to develop its capital, Amaravati. This meets a key demand of the state government, which had sought support for the construction and development of Amaravati as the sole capital.
“The Centre recognises Andhra Pradesh's need for capital and will facilitate support through multi-lateral development agencies, Sitharaman said. The government is also committed to financing and completing the Pollavaram irrigation project, considered the lifeline for Andhra Pradesh's farmers,” FM Sitharaman added.
The emphasis on Bihar and Andhra Pradesh is seen as a well-planned move by the Centre to strengthen its alliance with the JD(U) and TDP, crucial partners in the NDA coalition. With the BJP dependent on its allies to reach the majority mark, the Budget 2024 announcements are likely to be seen as a political investment in these relationships.
"We will formulate plan Purvodaya for all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh," Sitharaman said, highlighting the Centre's focus on eastern India's development. Meanwhile, the Budget 2024 declarations for Bihar and Andhra Pradesh are expected to have significant political implications, particularly in the run-up to the elections.
