Date: July 23, 2024

Modi’s Friends Get Special Treatment in Union Budget

High Expectations for Andhra Pradesh and Bihar

The Union Budget brought high hopes for Andhra Pradesh (AP) and Bihar. Both states helped the BJP-led NDA secure a majority in the recent elections. Chief Ministers Chandrababu Naidu of AP and Nitish Kumar of Bihar held extensive discussions with Prime Minister Modi and his cabinet, raising expectations of special treatment for their states.

Financial Allocations for AP and Bihar

Finance Minister Nirmala Sitharaman included significant financial allocations for Andhra Pradesh and Bihar, though not fully meeting all expectations. The budget’s incentives and earmarked funds indicate the Modi government’s intention to keep its allies satisfied and loyal.

Andhra Pradesh’s Requests and Budget Allocation

AP CM Naidu visited Delhi multiple times, requesting substantial funds to revive the state’s economy and development. His requests included funds for developing the capital, completing the Polavaram project, establishing infrastructure, setting up industrial corridors, speeding up Bhogapuram Airport, and improving backward districts. Naidu reportedly asked for nearly ₹1 lakh crore for these initiatives.

Though not all requests were met, the budget allocated ₹15,000 crores for Amaravati and prioritized the Polavaram project. The Finance Minister assured further funds in the coming years and pledged grants for backward regions, emphasizing the commitment to the Andhra Pradesh Reorganisation Act.

Bihar’s Gains from the Budget

Bihar also saw significant allocations, with plans for new airports, medical colleges, and sports infrastructure. The Finance Minister assured that requests to multilateral banks would be fast-tracked. Additionally, ₹26,000 crore was 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.

Special Treatment for Modi’s Allies

Overall, AP and Bihar benefitted more than other states in the budget. The central government’s allocations and incentives reflect a clear intent to appease Modi’s allies, Naidu and Nitish Kumar, ensuring their continued support and allegiance.

Conclusion

The Union Budget has shown preferential treatment to Andhra Pradesh and Bihar, rewarding their support in the recent elections. With substantial financial allocations and promises of further assistance, the Modi government aims to keep its allies satisfied and maintain political stability.