The Centre’s financial package for Andhra Pradesh and Bihar may cost the exchequer around Rs 20,000-30,000 crore in 2024-25, according to government sources. While Andhra Pradesh is expected to receive Rs 15,000-20,000 crore, Bihar is likely to get Rs 5,000-10,000 crore in FY25.
A major chunk of the allocations has been made under the “Special Assistance under the demand – Transfers to States” head, which has been raised fivefold to Rs 20,000 crore in the full Budget for FY25 compared to Rs 4,000 crore allocated in the Interim Budget.
The Telugu Desam Party in Andhra Pradesh and the