The coalition government of Narendra Modi is heavily reliant on the parties of Chandrababu Naidu’s TDP and Nitish Kumar’s JD(U). This is the reason why the central government may prioritize states such as Andhra Pradesh and Bihar in this year’s budget. According to media reports, before the 2024 Union Budget, both states requested over one lakh crore rupees from the central government.
According to documents reviewed by Reuters and a source, the two significant BJP allies have requested an increase in the borrowing limit for infrastructure projects and funds for the current fiscal year.
Andhra Pradesh’s Demands
Bloomberg’s report indicates that Naidu has requested financial assistance totaling over one lakh crore rupees. Earlier this week, the TDP supremo met with Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman. According to sources, he emphasized his demands during this meeting.
According to a report by Moneycontrol, Andhra Pradesh has requested funds for the development of its capital, Amaravati. Furthermore, funds have been requested for the Polavaram irrigation project.
![Andhra Pradesh Chief Minister Chandrababu Naidu meets Finance Minister Nirmala Sitharaman](https://frontierindia.com/briefs/wp-content/uploads/2024/07/Andhra-Pradesh-Chief-Minister-Chandrababu-Naidu-meets-Finance-Minister-Nirmala-Sitaraman-1024x593.webp)
Naidu is seeking funding for metro projects in Vijayawada, Visakhapatnam, and Amaravati, which includes the Vande Bharat train from Vijayawada to Mumbai and New Delhi and a light rail project. Furthermore, he has pursued grants for underprivileged districts and assistance for infrastructure initiatives, including the Ramayapatnam port and an integrated steel facility in Kadapa.
Bihar’s Funding Requests
According to a report, Bihar needs nine additional airports. The state is seeking funding to establish nine new airports, two power initiatives, two river water programs, and seven medical colleges.
Request for Infrastructure Loans
In addition, according to a Reuters report, both states are seeking to nearly double the unconditional long-term loans that the central government provides to all states for infrastructure expenditure to one lakh crore rupees.
Budget Session Details
The interim budget establishes a fiscal deficit of 5.1% of GDP as the center’s objective. Parliamentary Affairs Minister Kiren Rijiju announced on July 6 that the budget session will be conducted from July 22 to August 12. Union Finance Minister Nirmala Sitharaman will present the budget on July 23.
In the recently concluded Lok Sabha elections, the Modi-led BJP formed the central government with crucial support from the TDP (16 MPs) and the JD(U) (12 MPs). This alliance has led to widespread anticipation that Naidu and Nitish Kumar would leverage their position to secure additional funding for their respective states, effectively acting as kingmakers for the BJP-led coalition.