 "budget, politics, special package, andhra, bihar")
Finance Minister Nirmala Sitharaman presented the Union Budget for FY25 on Tuesday, seeking to respond to the political message that the June 4 Lok Sabha poll verdict had thrown up, and the challenges that the Bharatiya Janata Party (BJP) faces. She did this by addressing discontent among crucial voting groups, such as the youth and farmers, and accommodating the demands of its key regional allies from Bihar and Andhra Pradesh.
Ever since June 4, when the results of the Lok Sabha polls were announced, and the BJP lost its single-party majority for the first time in ten years, the National Democratic Alliance (NDA) government had projected a sense of continuity in governance in its ministerial and bureaucratic appointments. However, the first Budget of the third successive term of the government laid bare its compulsions, especially its efforts to keep relations with allies, the Nitish Kumar-led Janata Dal (United) from Bihar and Andhra's N Chandrababu Naidu-led Telugu Desam Party, at an even keel.
While the Budget had several projects and assurances of financial assistance for Bihar and Andhra, it did not announce any projects for two of the poll-bound states that the BJP, either on its own, or along with allies, rules – Haryana and Maharashtra. If Bihar and Andhra Pradesh found five mentions each in the Budget speech, these states found none, nor did several other states, including Madhya Pradesh, Gujarat and Chhattisgarh, where the BJP performed well in the Lok Sabha polls.
Sitharaman announced a total outlay of nearly Rs 59,000 crore for Bihar, including funding for three expressways, a power plant, heritage corridors, new airports, sports infrastructure, and funds for flood mitigation. For Andhra Pradesh, the FM said the government would fulfil the commitments in the Andhra Pradesh Reorganisation Act, including facilitating special financial support through multilateral development agencies for the reconstruction of the state capital, Amaravati. In the current financial year, Rs 15,000 crore will be arranged, with additional amount in future years, she said.
Sitharaman promised the Centre’s assistance in financing and early completion of the Polavaram Irrigation Project. She said the Centre would provide funds for essential infrastructure such as water, power, railways, and roads in Kopparthy node on the Visakhapatnam-Chennai Industrial Corridor, and Orvakal node on Hyderabad-Bengaluru Industrial Corridor. An additional allocation will be provided this year towards capital investment for economic growth. Grants for backward regions of Rayalaseema, Prakasam, and North Coastal Andhra, would also be provided, the FM said. However, the speech didn’t mention the TDP’s demand for an oil refinery in Andhra.
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The FM said the government would formulate a plan, Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. The BJP won the Assembly polls in Odisha, forming its single majority government for the first time in the state. Jharkhand is scheduled for Assembly polls in December, while Bihar and Andhra are run by the NDA. The BJP has identified Bengal, despite the setbacks in the Lok Sabha polls, as a state where it hopes to do well by the next Assembly polls in May 2026.
For Bihar, the FM announced that the Centre would support the development of an industrial node at Gaya on the Amritsar-Kolkata Industrial Corridor, and develop road connectivity projects — Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and an additional two-lane bridge over river Ganga at Buxar at a total cost of Rs 26,000 crore. Power projects, including setting up of a new 2400 MW power plant at Pirpainti, will be taken up at a cost of Rs 21,400 crore, she said. “An additional allocation to support capital investments will be provided. The requests of the Bihar government for external assistance from multilateral development banks will be expedited,” Sitharaman said.
The government reached out to the middle classes by announcing income tax relief and Rs 2 trillion outlay for job creation schemes over the next five years. According to post-poll surveys, the BJP had faced voter ire in some states because of issues of livelihood and lack of job opportunities The words ‘jobs’ and ‘unemployment’ found a total 32 mentions in the FM’s speech.
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