Ruling BJP allies — Janata Dal (United) and Telugu Desam Party — emerged top beneficiaries of the Union Budget 2024-25 with Bihar and Andhra Pradesh, where the two respectively rule along with the BJP, taking the cake. Slamming it as a “bribe” to coalition partners, the Opposition said the disproportionate allocation was “critical to the survival of the NDA government led by the BJP”.
Copious mention of Bihar (five times) in Finance Minister Nirmala Sitharaman’s record seventh Budget speech and announcement of generous assistance of Rs 15,000 crore to Andhra Pradesh riled the Opposition MPs, who made it a point to register their protest every time the FM cited Bihar in her 84-minute presentation.
The Budget offered no sops for poll-bound Maharashtra or Jharkhand — the latter found a single mention during the minister’s reference to the new “Purvodaya” scheme aimed at developing all eastern states, while Maharashtra found none. Odisha, Andhra, Bengal also found one mention each in the speech as did Assam, HP, Uttarakhand and Sikkim, which managed assurance of help in the wake of rain and flood fury. Bihar, which the BJP rules in alliance with the JD(U) — a key government partner at the Centre — bagged promises of a whopping Rs 60,000 crore assistance by way of flood control, power generation, highway and heritage conservation projects.
Comprehensive development initiatives for Rajgir (home to a famous Jain Temple) and Nalanda — projects close to Bihar Chief Minister and JD(U) chief Nitish Kumar’s heart — were also announced, besides a Rs 11,500-crore flood control package. “Bihar has frequently suffered from floods, many of these originating outside the country. Plans to build flood control structures in Nepal are yet to progress. Our government, through the Accelerated Irrigation Benefit Programme and other sources, will provide financial support for projects, with an estimated cost of Rs 11,500 crore, such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes,” Sitharaman said.
For the new Andhra capital, the minister assured Rs 15,000 crore through multilateral development agencies and early completion of the Polavaram Irrigation Project, the lifeline of state’s farmers.
The JD(U) and TDP hailed the Budget, saying “this is the start, more will come as the government runs its full course”. Union Minister and senior JD(U) leader Rajeev Lallan Singh termed the Budget a “Modi googly”. JD(U)’s Sanjay Jha, who had demanded a special category status for Bihar at the Sunday meeting convened by the government, also welcomed it. “We had asked for giving either special status or assistance to Bihar. We have received generous help today. The flood-control package will be a game-changer as thousands of crores are lost annually to floods, which are the principal drivers of migration to Punjab and other states,” Jha told The Tribune.
Slamming the government, TMC’s Sudip Bandopadhyay called it “a Budget to bribe allies”. Punjab Congress MPs led by Amrinder Raja Warring and SAD’s Harsimrat Badal questioned the government over giving nothing to Punjab.
The TMC and BJD even walked out of the RS protesting the laying of the Budget. In the LS earlier, Tamil Nadu MPs asked “what about us” every time Sitharaman mentioned Bihar.
The Communist Party Of India (Marxist) Polit Bureau said the Budget should have focused on expanding economic activities, but instead its proposals are “contractionary and regressive”. This will only impose further miseries on the people and depress the levels of investment and employment generation. “The Budget figures show that the revenue earnings of the government increased by 14.5% while the expenditures grew only by 5.94%. Instead of using these revenues for expanding economic activity, it has been used to reduce the fiscal deficit, to appease International Finance Capital, from 5.8% to 4.9% of the GDP,” the Polit Bureau stated. The party also called the government’s Employment-Linked Incentive a ruse to subsidise the corporates.