Budget 2024: What key allies Naidu and Nitish got
What's the story
A month after Chandrababu Naidu's Telugu Desam Party and Nitish Kumar's Janata Dal (United) helped the Bharatiya Janata Party secure a third term, the Union Budget allocated key projects for Bihar and Andhra Pradesh. Despite the Centre ruling out Special Category Status for Bihar, it will receive multiple development projects, while Andhra will get funds for capital development, with a focus on infrastructure.
Demands
Andhra had sought ₹15,000 crore in pre-budget meeting
Following the Centre's decision to reject the longstanding JD(U) demand for Special Category Status, Finance Minister Nirmala Sitharaman announced several development projects for Bihar. To enhance road connectivity, the government plans to build expressways linking Patna to Purnea, Buxar to Bhagalpur, and another route connecting Bodhgaya, Rajgir, Vaishali, and Darbanga. A total of ₹2,600 crore has been allocated for these projects.
Infra push
Request for expedited bank funds will be met: FM
Additionally, Bihar will get a two-lane bridge over the Ganga in Buxar and a 2,400MW power plant in Pirpainti, Bhagalpur. Sitharaman also promised that the request for expedited bank funds for development will be met. Plans include developing temple corridors at Gaya and Rajgir to boost tourism and providing ₹11,500 crore for flood control structures to protect the state.
Under Modi 3.0
Bihar part of Purvodaya initiative
Bihar is included in the Purvodaya initiative launched by Modi 3.0 to enhance development in eastern India. "We will implement Purvodaya to ensure comprehensive development in Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh," Sitharaman said. This project will focus on developing human resources, boosting infrastructure, and creating economic opportunities, aiming to transform the region into a driver for achieving Viksit Bharat.
Infra push
Andhra gets ₹15,000 crore for development of new capital
In Andhra Pradesh, where the National Democratic Alliance won the recent Assembly elections, the minister announced that infrastructure projects in railways and roadways will be prioritized. "Recognizing Andhra Pradesh's need for capital, to facilitate support through multilateral development agencies, ₹15,000 crore will be arranged for Andhra Pradesh for the development of its capital [Amravati]," she said.
In Andhra
Resolution of concerns to be expedited
The Finance Minister stated that the Andhra Pradesh Re-organisation Act and the resolution of related concerns will be expedited. The Budget 2024's allocations for Andhra Pradesh and Bihar are being closely observed, given the crucial support provided by the TDP and the JD(U) that enabled the BJP to return to power after falling short of a majority in the recent Lok Sabha elections.
Row
Political slugfest over Bihar's special category status
To recall, the JD(U) faced criticism from Bihar's main opposition, the Rashtriya Janata Dal, after the Finance Ministry stated that Bihar does not qualify for a special category status. This status would have ensured additional central support for the state's development. "Nitish Kumar and JD(U)...must enjoy the fruits of power at the Centre and continue their drama politics on special status," RJD had said.
Background
What's special category status
Although the Constitution does not explicitly provide for special status, it was established based on the Fifth Finance Commission's 1969 recommendations. States that have received this status include Jammu and Kashmir (now a Union Territory), northeastern states, and hill states like Himachal Pradesh and Uttarakhand.