Tag: Finance Minister Nirmala Sitharaman

  • Explained: Is It Union Budget Or Bihar-Andhra Budget? Why Nitish-Naidu Run States ‘Got Too Much’ This Time – 10 Points |

    New Delhi: The Union Budget for the financial year 2024-25, presented by Finance Minister Nirmala Sitharaman in Parliament on Tuesday, has brought substantial allocations for Bihar and Andhra Pradesh. This is the first budget of Prime Minister Narendra Modi’s third term and the seventh for Sitharaman as Finance Minister. The budget has raised questions and sparked debates, with some labeling it as a budget aimed more at political gains rather than national development. Here are 10 key points explaining why Bihar and Andhra Pradesh received significant allocations and the controversies surrounding it:

    Major Announcements for Bihar and Andhra Pradesh:

    Finance Minister Nirmala Sitharaman announced an allocation of ₹58,900 crores for various development projects in Bihar and ₹15,000 crores for the development of Andhra Pradesh’s capital, Amaravati, and other projects. This significant allocation has been seen as a major boon for the states led by JD(U) President and Bihar Chief Minister Nitish Kumar and TDP Chief and Andhra Pradesh Chief Minister Chandrababu Naidu.

    Political Context:

    Both Nitish Kumar and Chandrababu Naidu are allies of the ruling NDA at the Center. With the BJP falling short of a majority by itself, needing the support of these regional parties, the allocations are seen as a strategic move to secure their continued alliance and support.

    Opposition’s Allegations:

    The opposition has criticized the budget, accusing the Modi government of political favoritism. Congress MP and Leader of the Opposition in Lok Sabha, Rahul Gandhi, called it a “save the chair” budget, aimed at appeasing political allies and business friends at the expense of other states.

    Claims of Regional Bias:

    Various opposition leaders, including Rahul Gandhi, Shashi Tharoor, and P. Chidambaram from Congress, and Akhilesh Yadav from SP, have criticized the budget for being biased. They have alleged that it neglects other regions and states, focusing only on BJP’s political allies.

    Praise from Allies:

    Despite the criticism, BJP and its allies have praised the budget. Andhra Pradesh CM Chandrababu Naidu thanked PM Modi and Finance Minister Nirmala Sitharaman. Bihar’s Union Minister Giriraj Singh welcomed the budget, calling it a “blessing” for Bihar.

    Substantial Allocations for Bihar:

    The budget includes ₹26,000 crores for various road projects in Bihar, including expressways connecting Patna-Purnia and Buxar-Bhagalpur. It also allocates ₹21,400 crores for a 2400 MW power project in Pirpainti and ₹11,500 crores for flood relief and management.

    Development of Cultural and Religious Sites:

    The budget mentions the development of Mahabodhi Temple and Vishnupad Temple in Bihar, akin to the Kashi Vishwanath Corridor. Additionally, new medical colleges, airports, and sports infrastructure will be developed in Bihar.

    Support for Andhra Pradesh:

    The budget allocates ₹15,000 crores for Andhra Pradesh under the Andhra Pradesh Reorganization Act. This includes funds for critical infrastructure like water, power, railways, and roads, along with financial support for the completion of the Polavaram irrigation project and the development of backward areas.

    Strategic Importance of Bihar and Andhra Pradesh:

    The significant allocations are seen as a strategic move by the BJP to maintain its political alliances. In the 2024 Lok Sabha elections, BJP secured 240 seats, falling short of the majority mark of 272. TDP and JD(U) won 16 and 12 seats respectively, making their support crucial for the BJP’s government formation.

    Balancing Political Demands:

    While Bihar and Andhra Pradesh did not receive the Special Status they have long demanded, the substantial budget allocations serve as a compensatory measure. This move ensures that the BJP retains the political support of Nitish Kumar and Chandrababu Naidu, crucial allies in the NDA coalition.