Budget 2024 has a lot in store for Bihar, Andhra: Why BJP allies JD(U), TDP have reasons to smile

Union Budget 2024 was Modi 3.0’s first. It was among the first early tests for the Narendra Modi-led government, which did not win an absolute majority in the general election and came to power with the help of allies – the Janata Dal (United) and the Telugu Desam Party (TDP).

Ahead of the budget, there was speculation whether the government would continue business-friendly reforms or give in to the demands of the JD(U) for Bihar and TDP for Andhra Pradesh. We now have the answers.

Both states featured prominently in Union Finance Minister Nirmala Sitharaman’s speech. “We will formulate plan Purvodaya for all round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh,” said the finance minister, as she highlighted specific initiatives under the budget for Bihar and Andhra.

We take a look at what the two states have received.

Bihar

Sitharaman first spoke about the initiatives for Bihar. She said the financial assistance will be arranged for the state through aid from multilateral development agencies. “The government will also set up airports, medical colleges and sports infrastructure in Bihar,” she said.

On financial aid to Bihar, she said, “We will support the development of an industrial nod at Gaya in Bihar. It will catalyse the development of the eastern region.”

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The Budget aims to support the development of road connectivity projects: Patna-Purnea expressway, Buxar-Bhagalpur highway, Bodhgaya-Rajgir-Vaishali-Darbhanga. It will also focus on the additional two-lane bridge over River Ganga in Buxar for Rs 26,000 crore. The FM also announced a 2,400 MW power plant at Pirpainti in Bhagalpur.

The request of the Bihar government for banks to expedite funds for development shall be fulfilled, Sitharaman said.

Apart from infrastructure boost, there was also a focus on flood management. The state frequently suffers from floods. “Bihar has frequently suffered from floods. Many of them originating outside the country. Plans to build flood-control structures in Nepal are yet to progress,” Sitharaman said.

The FM also assured financial support to projects worth Rs 11,500 crore including the Kosi-Michi intrastate link and 20 other ongoing and new schemes of barrages, river pollution abetment and irrigation projects. “Survey and investigation of Kosi-related flood mitigation and irrigation projects will be undertaken,” she promised.

The state also received a big tourism push. Vishnupad temple in Gaya and Mahabodhi temple in Bodhgaya will get corridors similar to Kashi Vishwanath temple corridor.

Rajgir will be developed as a major tourism site keeping in mind its significance for Hindus, Buddhists and Jains. Nalanda, besides being developed as a centre of learning, will also be developed as a tourism hub, according to the Budget speech.

JD(U) is the BJP’s second biggest ally in the NDA. The Nitish Kumar-led has been demanding a special status for Bihar for several years. After the formation of the new Modi government, the BJP’s national executive passed a resolution seeking special status or “special package” for Bihar. However, the special status remains elusive.

But the budget has a lot in store for Bihar, which goes to the polls next year. Nitish’s popularity is on the wane and today’s announcements will provide a much-needed boost ahead of polls.

The JD(U) welcomed a host of Bihar-specific announcements in the Budget, asserting that these development measures will be a big step in making the state “aatmanirbhar”. Party spokesperson  KC Tyagi lauded what he said was “special financial assistance” for Bihar by way of budgetary allocations of over Rs 26,000 crore for highways and Rs 11,500 crore for steps to mitigate floods.

Andhra Pradesh

Andhra Pradesh too has benefitted from the budget. The FM has focused on efforts to fulfil commitments to the Andhra Pradesh Reorganisation Act. “Recognising the state’s need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years,” Sitharaman said.

She said that the Centre will facilitate special financial support for the development of Amravati as the capital of Andhra Pradesh.

In Andhra Pradesh, infrastructure projects in railways and roadways will be prioritised, the FM announced. Grants for backward regions of Andhra Pradesh have also been promised – three districts in the state will be provided this.

Sitharaman said that the government is fully committed to the completion and financing of the Polavaram irrigation project, which is considered a lifeline for Andhra Pradesh and its farmers.

Cabinet Minister and TDP leader Ram Mohan Naidu was showing a thumbs-up as announcements for Andhra Pradesh were made by the FM.

The budget has given both BJP allies, the JD(U) and the TDP, reasons to cheer.

With inputs from agencies