Budget 2024: What are the special packages for Bihar, Andhra Pradesh?

Finance Minister Nirmala Sitharaman announced an allocation of Rs 15,000 crore for Andhra Pradesh. She said the Centre will set up airports, medical colleges, and sports infrastructure in Bihar

The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman has extended ‘special help’ to Bihar and Andhra Pradesh, addressing the aspirations of key National Democratic Alliance (NDA) allies — the Telugu Desam Party (TDP) and the Janata Dal United (JDU).

Marking a robust display of ‘coalition politics’, the first Budget of the Narendra Modi 3.0 government has gone above and beyond for Bihar and Andhra Pradesh. Sitharaman outlined a series of monetary aids and developmental projects for both states, critical to the stability of the NDA government at the Centre with their respective 16 and 12 MPs.

The Finance Minister announced an allocation of Rs 15,000 crore for Andhra Pradesh’s development in the current financial year, with assurances of further funds in subsequent years. Emphasising the commitment to the Andhra Pradesh Reorganisation Act, she pledged grants for the backward regions of the state, along with a special mention of the Polavaram Dam project.

For Bihar, Sitharaman revealed plans for new airports, medical colleges, and sports infrastructure. She assured the state government that their requests to multilateral banks would be fast-tracked. Additionally, Rs 26,000 crore has been earmarked for highways in Bihar, including the Patna-Purnia, Buxar-Bhagalpur, and Bodhgaya-Rajgir-Vaishali-Darbhanga Expressway, along with a new two-lane bridge over the Ganga in Buxar. A 2,400 MW power plant and an industrial corridor node in Gaya were also announced.

Bihar is set to benefit from the Purvodaya initiative, aimed at boosting development in the eastern part of the country. “We will formulate Purvodaya for the all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh,” Sitharaman said, noting that the project would focus on human resources development, infrastructure enhancement, and economic opportunity generation, to make this region a driving force for achieving a developed India.

Nitish Kumar and Chandrababu Naidu had lobbied vigorously for ‘special help’ for their states in pre-Budget meetings with Union ministers. Cabinet Minister and TDP leader Ram Mohan Naidu was seen cheering and giving a thumbs-up as Sitharaman made the announcements for Andhra Pradesh, reflecting the coalition’s satisfaction with the budgetary provisions.