The first budget of Modi government's third term gave special emphasis on Andhra Pradesh and Bihar. Andhra Pradesh received ₹15,000 crore while Bihar was allocated ₹60,000 crore.
The opposition is protesting against the budget, alleging discrimination against other states. Leaders from the INDIA bloc even held a protest in the Parliament premises. They claimed that states with opposition governments were overlooked in the budget.
Congress President and Leader of Opposition in Rajya Sabha, Mallikarjun Kharge, stated in Parliament that aside from two states, no one else got anything in the budget.
In protest of the budget, the opposition also boycotted the NITI Aayog meeting led by Prime Minister Narendra Modi on July 27. The Chief Ministers of Karnataka, Tamil Nadu, Telangana, and Jharkhand accused the government of sidelining their states.
These allegations arise because Chandrababu Naidu’s TDP and Nitish Kumar’s JD(U) are significant allies of the central NDA government. TDP has 16 MPs, and JD(U) has 12 MPs in the Lok Sabha.
On the other hand, Finance Minister Nirmala Sitharaman stated that there has been no discrimination in the budget. Addressing the allegations of not mentioning certain states in her budget speech, she clarified that not mentioning a state does not mean it hasn't been covered.
So, what have Bihar and Andhra Pradesh received in this budget? And what provisions have been made for other states?
What Did Bihar Get?
Bihar has been allocated around ₹59,000 crore in the 2024-25 budget. This includes ₹26,000 crore for the Patna-Purnia Expressway and Buxar-Bhagalpur Expressway. Projects for roads in Bodh Gaya, Rajgir, Vaishali, and Darbhanga will also be completed. Additionally, the central government will assist in building a two-lane bridge over the Ganga river in Buxar.
Moreover, ₹21,400 crore has been allocated for power projects, including a new 2,400 MW power plant in Pirpainti. Another ₹11,500 crore is earmarked to tackle floods.
The central government will also support developing an industrial center in Gaya along the Amritsar-Kolkata Industrial Corridor.
Development in Bihar also includes new airports, medical colleges, and sports infrastructure. The Vishnupad Temple in Gaya and the Mahabodhi Temple in Bodh Gaya will be developed, similar to the Kashi Vishwanath Temple Corridor. Nalanda University will be developed as a tourist spot.
What Did Andhra Pradesh Get?
The central government has allocated ₹15,000 crore for Andhra Pradesh in the budget, primarily for developing its new capital. Chief Minister Chandrababu Naidu is constructing the new capital in Amaravati.
Sitharaman announced that the Polavaram irrigation project in Andhra Pradesh will be completed soon.
Funds will also be provided for water, electricity, railways, and roads in the Kopparthy region of the Visakhapatnam-Chennai Economic Corridor and the Orvakal region of the Hyderabad-Bangalore Economic Corridor. Grants will also be given to backward areas in Rayalaseema, Prakasam, and North Coastal Andhra Pradesh.
What About Other States?
No significant announcements were made for other states. However, a new scheme named ‘Purvodaya’ will be launched for the development of the eastern region, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Additionally, flood-affected states got a mention. Sitharaman stated that the center will help restore damages in Assam, Himachal Pradesh, Uttarakhand, and Sikkim due to floods. The center will also support ongoing projects to manage Assam's floods.
The central government has allocated ₹42,277.77 crore for Jammu and Kashmir, which is 1.2% more than the previous budget. Additionally, ₹9,789.42 crore has been set aside for the Jammu and Kashmir police.
Source: aajtak
Other Provisions for States
According to the budget documents, a total of ₹23,48,980 crore will be transferred to state governments and union territories, about 12% more than the allocation for 2023-24.
Out of this ₹23.38 lakh crore, ₹12.47 lakh crore will be distributed as states’ share in central taxes and duties, while the remaining ₹11.01 lakh crore will be given as grants.
Based on the Finance Commission's recommendations, states and union territories are entitled to 41% of central taxes and duties. If the central government earns ₹100 in tax revenue, ₹41 will be distributed to states and union territories.
In 2024-25, the central government is expected to earn ₹38.40 lakh crore in taxes and duties. Out of this, ₹12.47 lakh crore, i.e., 32%, will be transferred to state governments and union territories, slightly lower than the recommended amount.
Uttar Pradesh will receive the highest share of taxes, amounting to over ₹2.23 lakh crore. Bihar will get ₹1.25 lakh crore, and Andhra Pradesh will receive ₹50,000 crore.
Additionally, the central government will allocate ₹1.50 lakh crore to state governments for infrastructure spending.
