On July 23, 2024, during her Budget 2024-25 speech, Finance Minister Nirmala Sitharaman announced a series of special schemes for Bihar and Andhra Pradesh. These announcements came around 20 minutes into her speech. They were seen as efforts to keep key allies, Bihar Chief Minister Nitish Kumar and Andhra Pradesh Chief Minister N Chandrababu Naidu, happy.
Introduction of ‘Purvodaya’ Scheme
One of the major announcements was the introduction of the ‘Purvodaya’ scheme. It aims at the all-round development of the eastern region. This includes Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. The scheme focuses on human resource development, infrastructure and creating economic opportunities. By this they are making the region a growth engine for a developed India.
BJP’s Political Strategy in the East
The BJP has been working to gain power in West Bengal, currently led by Mamata Banerjee’s Trinamool Congress. The party has become the main opposition in the state. It aims to strengthen its position through such developmental initiatives.
Demands from Bihar and Andhra Pradesh
Both Bihar and Andhra Pradesh had significant demands. Nitish Kumar sought funds for building nine new airports, seven medical colleges and two power projects. Among the schemes announced for Bihar were the establishment of a 2,400 MW power plant in Pirpainti, Bhagalpur. It is costing INR 21,400 crore. The construction of new airports and medical colleges are some of the other projects.
Development Projects in Andhra Pradesh
Chandrababu Naidu requested funds for the development of Amaravati as the state capital and for an irrigation project. Andhra Pradesh was allocated INR 15,000 crore for the current financial year. It promises additional funds in the future. The Centre also committed to completing and financing the Polavaram irrigation project. It is crucial for the state’s farmers and food security.
Industrial and Infrastructure Support
The Budget included support for developing industrial nodes at Gaya in Bihar and in Andhra Pradesh’s Visakhapatnam-Chennai and Hyderabad-Bengaluru Industrial Corridors. Additional funds were also promised for road connectivity projects in Bihar, including new expressways and a bridge over the Ganga River.
Political Implications
The Modi government needs the support of its allies for stability in the Lok Sabha, where the BJP holds 240 seats out of 543. The Telugu Desam Party (TDP) led by Naidu has 16 members, and Nitish Kumar’s Janata Dal (United) has 12 representatives. These alliances are crucial for the BJP, which has refrained from granting ‘special status’ but offered special packages to meet the demands of these states.
Commitment to Regional Development
Finance Minister Sitharaman assured that the Union government is committed to the development of backward regions in both states. This includes Rayalaseema, Prakasam and North Coastal Andhra in Andhra Pradesh. The special packages and development plans are aimed at ensuring political stability. By this meeting they are fulfilling developmental needs of these regions.
Also Read: Budget 2024: Government Unveils GST Expansion, Duty Cuts on Essentials and Simplified Tax Regime
The special schemes and financial support announced in the Budget 2024-25 reflect the BJP’s strategic efforts to maintain strong alliances with Nitish Kumar and Chandrababu Naidu. These measures are expected to promote regional development and strengthen the NDA’s political position in the upcoming elections.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
