Budget 2024: Strategic Allocations for Bihar and Andhra Pradesh

A month after N. Chandrababu Naidu’s TDP and Nitish Kumar’s JDU played a pivotal role in securing a third term for the BJP, Modi 3.0’s Budget 2024 has earmarked significant projects for Bihar and Andhra Pradesh, states led by these key allies.

Despite the Centre’s decision not to grant Bihar Special Category Status—a long-held demand of the JDU—Finance Minister Nirmala Sitharaman announced several development initiatives for the state. To improve road connectivity, the budget includes plans for expressways connecting Patna and Purnea, Buxar and Bhagalpur, and another route linking Bodhgaya, Rajgir, Vaishali, and Darbanga, with a dedicated fund of ₹2,600 crore. Bihar will also benefit from a two-lane bridge over the Ganga in Buxar district and a 2,400 MW power plant at Pirpainti in Bhagalpur.

Sitharaman assured that the Bihar government’s request for expedited development funding from banks would be honored. Additionally, plans to develop temple corridors at Gaya and Rajgir aim to boost tourism, and a ₹11,500 crore flood control project has been promised to mitigate flood risks in the state.

Bihar is also included in the Purvodaya initiative, which targets comprehensive development in the eastern region of India. “Purvodaya will drive holistic development in Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh,” said the Finance Minister, highlighting the focus on human resource development, infrastructure, and economic opportunity generation. The aim is to transform this region into a powerhouse for achieving Viksit Bharat (Developed India).

In Andhra Pradesh, where the NDA recently achieved a sweeping victory in the Assembly polls, the budget prioritizes infrastructure projects in railways and roadways. The Finance Minister announced a ₹15,000 crore allocation through multilateral development agencies to support the state’s capital development needs. The government will also expedite the implementation of the Andhra Pradesh Reorganisation Act and address related issues.

The budget’s focus on Andhra Pradesh and Bihar comes in the context of the critical support TDP and JDU provided to the BJP, enabling its return to power despite falling short of a majority in the Lok Sabha elections.

JDU has faced criticism from the main opposition in Bihar, the RJD, after the Finance Ministry declared that Bihar does not meet the criteria for special category status. The RJD sarcastically remarked, “Nitish Kumar and JDU leaders must enjoy their central power while continuing their drama over special status.” The JDU had previously stated that if special status cannot be granted, they expect a special package for Bihar.

Special status ensures additional central support to accelerate the development of backward states. Although the Constitution does not explicitly provide for special status, it was introduced based on the Fifth Finance Commission’s recommendations in 1969. States that have received special status include Jammu and Kashmir (now a Union Territory), Northeastern states, and hill states like Himachal Pradesh and Uttarakhand.

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