Political consolidation, rather than fiscal consolidation, appears to be the objective of the Union Budget for 2024-25, the first of the NDA 3.0. Bihar and Andhra Pradesh, ruled by the key allies whose support is crucial for the stability of the central government, got special treatment in terms of funds allocation. Nitish Kumar and Chandrababu Naidu must be mighty pleased with the liberal assistance announced by Union Finance Minister Nirmala Sitharaman who presented her seventh consecutive Budget. Unlike in the past two terms, the NDA government is now dependent on both the Janata Dal (United) and the Telugu Desam Party for survival. In a clear move to please them, it has opened its purse strings for Bihar and AP, while ignoring the genuine needs of other states.
This has exposed the Centre to the charge of political favouritism. Effectively, Bihar will be getting Rs. 37,500 crore in special funds allocated for multiple infrastructure projects across districts and flood mitigation plan, while there will be additional funds for the development of tourism and cultural circuits around Rajgir and Nalanda in the state. The Centre will release Rs. 15,000 crore in the current financial year as special assistance for the industrial and infrastructural development of Amaravati, the new capital of AP. Apart from this specific fund, the Central government will also release additional financial assistance through multilateral development agencies. Grants for backward regions of Rayalaseema and north coastal Andhra were also part of the package. These kinds of political favoritism are uncalled for. In a democracy, everyone should be treated equally.