Short Edit: Modi 3.0 Doesn't Forget Allies TDP, JDU As Andhra Pradesh, Bihar Get Budget Bonanza

A day after the Ministry of Finance ruled that the case for Bihar to get the 'special category' status is not "made out", Finance Minister Nirmala Sitharaman announced massive infrastructure and other developmental packages for the state, along with that for the southern state of Andhra Pradesh. This move is significant as this comes after the 2024 Lok Sabha elections, in which the Narendra Modi-led NDA government's victory was bolstered by key allies: Nitish Kumar's JDU and Chandrababu Naidu's TDP, which are ruling Bihar and Andhra Pradesh, respectively. 

Though none of the speculated demands from these allies officially surfaced, the underlying expectation for their support was clear — more funds for their states.

The Modi 3.0 government's first budget ensured that it has not forgotten the allies.

As Sitharaman's speech is still underway in Parliament, FM's first quarter portion of the speech showered the two states with various development projects. 

The central government in its budget speech unveiled an extensive development plan for Bihar, with projects worth Rs 58,500 crore aimed at enhancing infrastructure, power, healthcare, industrial growth, tourism, and flood control in the state.

The central government has proposed a whopping Rs 26,000 crore budget for various road projects. In addition to the road projects, the Centre has also assured that it will set up more airports, medical colleges, and sports infrastructure in Bihar.

Furthermore, Sitharaman revealed that Prime Minister Narendra Modi has assured that the request from the Bihar government for external assistance from multilateral development banks will be expedited, paving the way for even more comprehensive development in the state.

Andhra Pradesh Gets Boost In FM Sitharaman's 7th Budget Speech

Finance Minister Sitharaman in her record 7th budget speech made several significant announcements for Andhra Pradesh, highlighting the Centre's commitment towards their ally TDP.

- Amravati Development: Rs 15,000 crore has been allocated for the development of Amravati as the state's capital. The funds will be raised from multilateral funding agencies and routed through the Centre.

- Polavaram Irrigation Project: The Centre has reiterated its commitment to completing and financing the Polavaram irrigation project, a major boost to the state's agricultural sector.

- Industrial, Infra Funding: The central government has announced plans to promote industrial development by providing funds for essential infrastructure in key nodes along the Vishakhapatnam-Chennai and Hyderabad-Bengaluru Industrial Corridors. Specifically, Kopparthy node and Orvakal node will receive funding for critical infrastructure such as water, power, railways, and roads. Additionally, a special allocation will be made this year for capital investment to drive economic growth.

- Backward Region Grant: Three districts in Andhra Pradesh will receive a backward region grant, aimed at promoting development and bridging the gap in these areas.

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