Budget 2024: With Nitish & Naidu Backing NDA, Will Modi Grant Special Package To Bihar & Andhra Pradesh?
Budget 2024: Nitish Kumar and Chandrababu Naidu, who supported the BJP's formation of the government, expect a return of favour in the Union Budget.
Union Budget 2024: Nitish Kumar and Chandrababu Nadu did their bit to help the BJP-led NDA to form the government at the Centre after the Lok Sabha election results were declared. Narendra Modi returned as the Prime Minister of India for a record third time. "It is now time to return the favour" — is this what Chandrababu Naidu and Nitish Kumar telling PM Modi as the Centre gears up to present the first Budget of the Modi 3.0 government?
All Eyes On Nirmala Sitharaman's Modi 3.0 Budget
The primary focus of Finance Minister Nirmala Sitharaman would be to limit the fiscal deficit. The country will be closely watching her as she lays out the glide path for the targeted 4.5% fiscal deficit by FY-2026.
Nirmala Sitharaman will also be keenly watched to see what she presents to Nitish Kumar and Chandrababu Naidu for their support to PM Narendra Modi. PM Modi granted 11 of his allies ministerial berths. Five of these allies got seats in the Cabinet. Nitish Kumar's JD-U and Chandrababu Naidu's TDP comprise 9.5% of the NDA's strength in Lok Sabha.
What Are Nitish Kumar's Demands For Bihar?
Bihar Chief Minister Nitish Kumar is one of the 'kingmakers' in the Narendra Modi government, with his JD-U providing the support of 12 Lok Sabha MPs. Nitish Kumar has demanded Rs 30,000 crore for Bihar for the remaining part of this fiscal from the Centre to fund development projects in his state.
The JD-U's national executive had earlier pushed forth a demand for either the special category status or a special fiscal package for Bihar. As the former looked nearly impossible with the dissolution of the 14th Pay Commission, Kumar can hope for a special fiscal package to fund projects in Bihar in lieu of his support to PM Modi. A special status would have enabled Bihar to get 90% of the funds for any project from the Centre.
The Bihar BJP, too, has backed JDU's demand for a special status or a special package for the state.
What Are Chandrababu Naidu's Demands For Andhra?
Andhra Pradesh CM Chandrababu Naidu, perhaps the most important ally for the BJP, has not demanded a 'special status'. But he has sought a special package for Andhra Pradesh. Earlier this week, Naidu met Amit Shah and told him that his predecessor, Jagan Mohan Reddy, had left the state treasury in tatters, and hence, he needed a special package.
In an X post, Naidu said: "Today in New Delhi, I met with the Hon'ble Union Home Minister, Shri Amit Shahji, to apprise him of the devastating condition of finances that Andhra Pradesh had slipped into over the past five years. I also discussed the findings of the four White Papers released, outlining the staggering debt accumulated between FY 2019-24 that spiralled our State's finances out of control. Economic incompetence, gross mismanagement, and rampant corruption by the previous government have caused irreparable damage to our State."
He added: "Honouring the mandate given by our people to the NDA, the Central and State governments will devise a comprehensive recovery plan and bring our State's economy back on track. We shall fulfil people’s aspirations together."
Amravati, Polavaram Projects Grant Demands
Naidu is likely to demand assistance to develop Andhra's capital city, Amravati, as this was one of Naidu's key pre-poll promises. However, provisions for yearly allocation of funds are already in the Andhra Pradesh Reorganisation Act. The Amravati development project was put on the backseat during Jagan Reddy's tenure.
The Naidu government is also pressing for fund assurances over the next few years for the competition of the Polavaram National Irrigation Project. This project is key to meeting Andhra's potable water, irrigation, and power generation needs.
In addition to these, the state is also seeking funds for the development of backward regions and industrial hubs.
What Happens If Nitish, Naidu's Demands Are Not Met
If the demands of Nitish Kumar and Chandrababu Naidu are not met or fall short of expectations, the two chief ministers could start exploring options outside the NDA. However, pulling out of the national alliance would be easier said than done. Both parties, though, clarified earlier that their support for NDA is "unconditional".
Nitish, who has already earned the moniker 'Palturam' for his frequent alliance changes, is cornered as per the prevailing scenario. In the past, he said: "I would never ally with the BJP." Amit Shah, in turn, had said: "You [Nitish] can never return to the NDA folds. We have closed all doors for Nitish babu." But as the famous saying goes, "politicians make strange bedfellows". Both sides, after oozing poison against each other, came together right before the polls.
In case Nitish Kumar is denied the desired special package, he will have the option to pull out of NDA, citing "greater good for Bihar". But he will find it difficult to explain the move to his voters.
Chandrababu Naidu is a tad better placed, though not too much. After walking out of the NDA in 2018, Naidu rejoined the coalition before the 2024 Lok Sabha elections. He was joined by Pawan Kalyan's Jana Sena in Andhra Pradesh. His argument was that Andhra Pradesh had been ruined by Jagan Mohan Reddy's policies.
In an interview to India Today, Naidu said there was no difference with the BJP apart from the denial of a special state status and fiscal grants. He said he joined the NDA only to "protect the people of Andhra Pradesh and save their future".
Since the whole premise of his pre-poll alliance with the BJP was based on the grant of fiscal benefits, a denial of the same could lead Naidu to snap ties with the NDA.
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