A month after the TDP led by N Chandrababu Naidu and JDU led by Nitish Kumar assisted the BJP in securing a majority for the third consecutive term, the Budget 2024 of Modi 3.0 has allocated significant projects for the states governed by its allies in need – Andhra Pradesh and Bihar. Following the rejection of any proposal to grant Bihar a Special Category Status by the Centre, a demand long advocated by the JDU, Finance Minister Nirmala Sitharaman unveiled numerous development initiatives for the state.
In an effort to enhance road connectivity in Bihar, the government has revealed plans to construct expressways linking Patna and Purnea, Buxar and Bhagalpur, as well as Bodhgaya, Rajgir, Vaishali, and Darbanga. A budget of ₹2,600 crore has been set aside for this purpose. Furthermore, the state will benefit from a two-lane bridge over the Ganga in Buxar district. The Finance Minister also disclosed the establishment of a 2,400 MW power plant in Pirpainti, Bhagalpur.
The Bihar government’s request for banks to expedite funds for development will be met, as stated by Ms Sitharaman. The Centre has also announced plans to develop temple corridors at Gaya and Rajgir in Bihar to boost tourism. Additionally, it has pledged financial support of Rs.11,500 crore for flood control structures to protect the state from floods. Bihar is also included in the Purvodaya initiative under Modi 3.0, aimed at accelerating development in the eastern part of the country. The Finance Minister emphasized that the Purvodaya project will focus on human resources development, infrastructure improvement, and economic opportunities in Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh, with the goal of making this region a driving force for achieving the vision of Viksit Bharat.
In Andhra Pradesh, where the NDA secured a victory in the recent Assembly elections, the focus will be on prioritizing infrastructure projects in Railways and roadways, as announced by the minister. Recognizing the need for capital in Andhra Pradesh and to facilitate support through multilateral development agencies, an amount of ₹15,000 crore will be allocated for the development of the capital,” she stated. The Finance Minister also mentioned that the Andhra Pradesh Re-organisation Act and addressing concerns related to it will be fast-tracked.
The allocation for Andhra Pradesh and Bihar in the Budget 2024 is under scrutiny, especially considering the crucial support provided by TDP and JDU to the BJP to regain power after falling short of a majority in the Lok Sabha elections this year. JDU faced criticism from the main Opposition party in Bihar, RJD, following the Finance Ministry’s statement that there is no justification for granting Bihar a special category status. In response, RJD commented, “Nitish Kumar and JDU leaders should enjoy the benefits of being in power at the Centre and continue their political theatrics regarding special status.”
Bihar Chief Minister and JDU chief Nitish Kumar expressed satisfaction with the Budget. He emphasized the importance of special status or alternative assistance for the state’s development. Special status provides additional central support to aid the progress of a less developed state. Although not constitutionally mandated, it was first recommended by the Fifth Finance Commission in 1969. States like Jammu and Kashmir, Northeastern states, Himachal Pradesh, and Uttarakhand have previously been granted special status.