BJP, JD(U) and TDP Find Common Ground

The Budget provisions dealing with Bihar and Andhra Pradesh show Janata Dal (U) chief Nitish Kumar and Telugu Desam Party (TDP) supremo N Chandrababu Naidu have astutely settled for specific development and finance packages for their states rather than insisting on the politically contentious claim for ‘special status’ that may be eye-catching but does not deliver the goodies which make a difference on the ground.

The Budget announcements relating to Bihar and Andhra Pradesh indicate that the more discerning reading about the priorities of Kumar and Naidu has proved accurate: The references to special status in the all-party meeting before the start of the Budget Session were more for the record. Both allies have solid commitments from the Centre, which also benefits from strengthening factors that bind JD(U) and TDP to the National Democratic Alliance (NDA). The two states have much to gain.

The need to cater to key allies in the light of the Lok Sabha result where the Bharatiya Janata Party (BJP) fell 32 seats short of the majority was obvious but Finance Minister Nirmala Sitharaman has presented the assistance as part of initiatives to develop tourism, road and rail infrastructure, flood control, industry nodes and, in the case of Andhra Pradesh, a new much-needed capital city.

Aware that the Budget will need to balance regional claims, Sitharaman announced a ‘look-east’ policy by way of “Purvodaya (Rise of the East)”, stating, “We will formulate a plan [Purvodaya] for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.” By including Andhra Pradesh in the project, the minister may have stretched the definition of east but has made the plan come across as inclusive with states other than Bihar and Andhra Pradesh—where BJP has significant interests—also eligible for benefits under the proposed spending push.

Bihar’s recurrent misery due to annual floods as rivers, particularly the Kosi which has come to be called the ‘river of sorrow’ originating in Nepal, rise menacingly during the monsoons, has found redressal with the Centre promising funds through the “accelerated irrigation benefit programme and other sources” with financial support for projects at an estimated cost of ₹11,500 crore. These will include the Kosi-Mechi intra-state link and 20 other ongoing and new schemes, including barrages, river pollution abatement and irrigation projects. In addition, a survey and investigation of Kosi-related flood mitigation and irrigation projects will be undertaken.

Important road connectivity projects like the Patna-Purnea and Buxar-Bhagalpur expressways, Bodh Gaya, Rajgir, Vaishali and Darbhanga spurs and a two-lane bridge over Ganga at Buxar at a total cost of ₹26,000 crore are envisaged. Power projects, including setting up of a new 2,400MW power plant at Pirpainti will cost Rs 21,400 crore. New airports, medical colleges, and sport infrastructure in Bihar will be constructed. All these announcements need to be seen in the light of Assembly polls due next year where BJP and JD(U) will contest as partners. The development push is vital to overcome incumbency that may be more pronounced in an Assembly election.

Andhra Pradesh finances have been scarred by the YSR-CP government’s profligate cradle-to-birth schemes and Naidu, too, made promises to ensure voters did not feel that benefits will be withdrawn if TDP assumed office. “Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganisation Act. Recognising the state’s need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year, ₹15,000 crore will be arranged, with additional amounts in future years,” Sitharaman said.

The financing and “early completion” of the Polavaram irrigation project, which has been hanging fire for years, has been promised with the finance minister saying that it is the lifeline of Andhra Pradesh and its farmers. “This will facilitate our country’s food security as well,” she said. As part of the Andhra Pradesh Act, the objective of promoting industrial development will be aided by funds provided for essential infrastructure such as water, power, railways and roads in what will be the Kopparthi node on the Visakhapatnam-Chennai industrial corridor, and the Orvakal node on the Hyderabad-Bengaluru corridor. There will be grants—not yet specifically identified—for backward regions of Rayalaseema, Prakasam and north coastal regions too.

The cultural and tourism potential of Bihar which Sitharaman said amounts to “vikas bhi, virasat bhi (development and heritage)” will see the Vishnupad Temple at Gaya and the Mahabodhi Temple at Bodh Gaya benefit from temple corridors on the lines of the Kashi Vishwanath development. The idea is to make them world-class pilgrim and tourist destinations.

“Rajgir holds immense religious significance for Hindus, Buddhists and Jains. The 20th Tirthankara Munisuvrata Temple in the Jain temple complex is ancient. The Saptarishi or the seven hot springs form the warm water Brahmakund, which is sacred. A comprehensive development initiative for Rajgir will be undertaken,” the minister said.

Andhra PradeshBiharBudget 2024N Chandrababu NaiduNitish KumarUnion Finance Minister Nirmala Sitharaman