What Will Nirmala Sitharaman Grant Nitish For Election-Bound Bihar In Union Budget 2025?
Union Budget 2025 will be crucial for Nitish Kumar and NDA. Bihar received a special package of Rs 26,000 crore in Budget 2024, including flood control and infrastructure development.
The Union Budget 2025 will be sort of an acid test for Prime Minister Narendra Modi and his NDA ally and Bihar CM Nitish Kumar. The JD-U chief has made a series of U-turns in his political career to stay in power, earning himself the moniker of 'Palturam' in the process. Jumping in and out of the BJP-led National Democratic Alliance, Nitish Kumar was one of the two key allies that helped Narendra Modi bag the PM's chair for a third time. Now that Nitish has proved his loyalty, at least for the time being, the BJP will be focused on retaining the CM's chair for the JD-U chief.
With the Bihar Assembly elections due later this year, all eyes will be on how Union Finance Minister Nirmala Sitharaman treats ally Nitish Kumar. While the Centre had ruled out the grant of 'special category' status to Bihar last year, it did open it coffers generously for Bihar. Nitish Kumar would be hoping for the same this year.
What Bihar Got In Budget 2024
Nitish Kumar's 'ghar wapsi' to NDA just before the Lok Sabha elections was well rewarded in July 2024 when Union Finance Minister Nirmala Sitharaman granted a special package to Bihar. Nitish Kumar, with 12 MPs in the Lok Sabha, bagged a special package of Rs 26,000 crore.
The state was brought under the Centre's Mission Purvodaya and was granted an additional flood-control budget of Rs 11,500 crore. The Budget laid out an extensive plan to develop roadways, temple corridors in Gaya and Rajgir, new airports, medical colleges, and sports facilities in Bihar.
What Bihar Wants In Budget 2025
Bihar's wishlist by the JD-U, BJP, and LJP (Ram Vilas) this year will require the Centre to take ambitious steps. JD-U leader Vijay Kumar Choudhary also said that Bihar must get even better treatment than last year.
The state unit of the BJP has sought an agreement with Nepal to build dams and include rivers that flow through the state in the Flood Management Programme.
Bihar Deputy CM and BJP leader Samrat Chaudhary in a 32-page memorandum sought at least Rs 13,000 crore for bridge and flood-control infrastructure development. Chaudhary, who is also the Finance Minister of Bihar, has urged the Centre to fund 90% of the flood control measures in Bihar and grant an extension on the borrowing limit by 1% of the state's GDP until its per capita income reaches the national average. Bihar's per capital income as per the government data for 2021-22.
He also sought assistance in the installation of power production plants, Rs 25,000 crore interest-free loan for the development of infrastructure, and an allocation of over Rs 48,000 crore under the Pradhan Mantri Gram Sadak Yojana to upgrade roadways in rural areas.
'If Not Special Category, Give Bihar Special Industrial Package Status'
Going a step ahead, the Chirag Paswan-led LJP (Ram Vilas) demanded a special industrial package for Bihar. LJP (RV) chief whip in the Lok Sabha Arun Bharti said Bihar must be granted the special package to develop its industries since a 'special category' status was not possible.
He said this would give impetus to the state's demand for employment generation. Bharti further demanded the continuation of the special package granted last year.
Bihar had been asking for 'special category status' since 2011-12. Till 2014, 11 states were granted the Special Category status. However, after the dissolution of the Planning Commission in 2014, no state was granted the status. Bihar had asked for both special category and special package. However, right before the Union Budget was presented, the Modi government ruled out the possibility of Bihar getting a 'special category' status as the Constitution did not provide for the same.
With elections due in nine months, Nirmala Sitharaman may just give Bihar another push with another special package. With the Election Commission ruling that the Budget should not have any Delhi-specific scheme and no other election slated this year, the BJP may find it just a tad easier to cater to its allies' demands in election-bound Bihar.
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