Budget 2024: NDA allies Nitish, Naidu bag jackpots for Bihar, Andhra

The move of Nitish Kumar and N Chandrababu Naidu to back the NDA government at the Centre after the Lok Sabha polls seems to have paid off with their respective states of Bihar and Andhra Pradesh receiving mega allocations in the Union Budget 2024-25.

In her budget speech on Tuesday (July 23), Union Finance Minister Nirmala Sitharaman announced financial assistance for Bihar through aid from multilateral development agencies while assuring setting up of airports, medical colleges and sports infrastructure as well as giving a boost to the tourism industry of the state.

The key allocation for Andhra Pradesh in the budget was an outlay of ₹15,000 crore for the development of capital city, Amaravati. Here are the details:

BIHAR

In Bihar, the budget has proposed an outlay of ₹26,000 crore for various road projects, while outlining plans for new airports and sports infrastructure.

The government will also provide ₹11,500 crore to the state for flood mitigation.

While presenting the budget, Sitharaman said the government will arrange financial assistance to Bihar through aid from multilateral development agencies.

She also said ₹20,000 crore will be allocated for highways in the state. The government will also set up airports, medical colleges and sports infrastructure in Bihar.

New airports, sports infrastructure

“New airports and sports infrastructure will be constructed in Bihar and additional allocation to support capital investment will be provided…the request of Bihar government for external assistance from multilateral development banks will be expedited,” Sitharaman said.

Describing the eastern part of the country as being rich in endowment, she said, “we will support construction of industrial node at Gaya. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy”.

This model shall showcase 'Vikas Bhi Virasat Bhi' in the growth trajectory.

₹26,000 crore for road connectivity

"We will also support development of road connectivity projects namely – Patna-Punia Expressway, Buxar-Bhagalpur Expressway and additional two lane bridge over Ganga at Buxar at total cost of ₹26,000 crore,” she said.

The government will also support development of Nalanda in Bihar as a tourist centre, Sitharaman announced.

The minister also spoke of power projects, including setting up a 2400 MW power plant at Pirpainti (Bihar), which will be taken up at a cost of ₹21,400 crore.

ANDHRA PRADESH

The Central government will provide ₹15,000 crore financial assistance for Andhra Pradesh for the purpose of development of Amaravati, Sitharaman said.

She said the NDA government is fully committed to financing and early completion of Polavaram Irrigation project, which is considered as a lifeline for Andhra Pradesh and its farmers.

“Our government has made concerted efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. We are recognising the state's need for a capital. We will facilitate special financial support through multilateral development agencies. In the current financial year, ₹15,000 crore will be arranged with additional amounts in future years," she said.

Sitharaman further said under the AP Reorganisation Act, for promoting industrial developments, funds will be provided for essential infrastructure such as water, power, railways, and roads and also grants for backward regions of Rayalaseema, Prakasam North coastal Andhra Pradesh, as stated in the Act will be provided.