Budget 2024: No special status but two expressways to Bihar, Rs 15,000 cr to AP

A day after the NDA government admitted in a written reply to Parliament that there is no plan to grant special status to Bihar, Union finance minister Nirmala Sitharaman announced substantial fund allocations for Bihar and Andhra Pradesh — states whose ruling parties, Janata Dal (United) and Telugu Desam Party, are allies of the BJP at the Centre.

Presenting her seventh consecutive Union Budget, Sitharaman unveiled two major expressways for Bihar: the Patna-Purnea Expressway and the Buxar-Bhagalpur Expressway.

Additionally, two land bridges over the Ganga will be constructed in Buxar district. These projects, totaling Rs 26,000 crore, are expected to significantly enhance Bihar’s road infrastructure and stimulate growth. "The request of the Bihar government for external assistance from multilateral banks will also be expedited," she stated.

For Andhra Pradesh, Sitharaman announced a special package worth Rs 15,000 crore, recognising the state's need for a capital city as outlined in the Andhra Pradesh Reorganisation Act.

"We will facilitate special financial support through multilateral developmental agencies. A sum of Rs 15,000 crore will be arranged in the current fiscal year, with additional outlays in future years," the finance minister said.

She also reaffirmed the government’s commitment to the early completion of the Polavaram project, crucial for Andhra Pradesh’s water and food security.

These announcements are politically significant, as both states have long demanded special category status and special packages since their bifurcation.

Reacting to the announcements, the Congress questioned why it took ten years to grant the special package. "In 2018, Chandrababu Naidu garu quit the NDA because of the Prime Minister’s failure to grant Andhra Pradesh Special Category Status. Six years later, at a time when the government relies on his MPs for support, all he has managed to get is ‘special financial support’ for Amravati," said Jairam Ramesh, head of the Congress Communication Department.

He further questioned, "Why has it taken ten years to announce the implementation of what was already committed to in the Andhra Pradesh Reorganisation Act, 2014?"