Two days before the Union Budget was presented in Parliament, a grassroots source had predicted that Chandrababu Naidu would approve the budget. By Tuesday afternoon it became clear that the Naidu-Nitish duo had certainly made the budget an AB budget focused on Andhra Pradesh and Bihar.
Amaravati, the capital of Andhra Pradesh, which was a ghost city till June 4, will now get special financial assistance of Rs 15,000 crore this year. The central government will facilitate this through multilateral development agencies. Not only this, additional funds will be arranged in the coming time. Polavaram Irrigation Project also got commitment in the House for financing and completing it soon.
Funds will be provided for creation of infrastructure at Kopparthi node on Visakhapatnam-Chennai Industrial Corridor and Orvakal node in Kurnool district of Andhra Pradesh on Hyderabad-Bengaluru Industrial Corridor. Grants have also been announced for Rayalaseema and backward areas of North Coastal Andhra.
Bihar gets funds for many areas
Rs 26000 crore will be invested in highway development in Bihar. Bihar was also mentioned in the budget speech and funds were allocated for temples, flood management, irrigation and industrial nodes.
Politically, this is very good news for Naidu. Unlike the Vajpayee era, when Naidu played a key role in the NDA and was often seen campaigning in the national capital to raise funds for Rice and United Andhra Pradesh. Naidu’s stature is weakening in Modi’s third term.
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Naidu’s image will be strengthened
The decision taken in the budget came as a relief to Naidu as instead of demanding the post of Lok Sabha Speaker for the TDP MP or more number of ministries in the Union Council of Ministers, the Andhra Pradesh Chief Minister secured funds for his state.
Politically, this is a chance for Naidu to boast at home and demoralize the already dejected YSRCP. This will also strengthen Naidu’s image as a development-oriented leader and he will be able to sell the dream of jobs to the people, especially in the backward Rayalaseema region.
This is why within minutes of the announcement, Naidu thanked the Prime Minister and the Finance Minister on social media with the hashtag #APBackonTrack. In terms of timing, it couldn’t have been better. YS Jaganmohan Reddy along with YSRCP leaders are sitting on a peaceful protest in the national capital to raise voice against the attacks on YSRCP workers in Andhra Pradesh, which the opposition party alleges is politically motivated at the behest of TDP.
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What Jagan could not do, Naidu did
If seen, Naidu will be seen as the one who has achieved for Andhra Pradesh what Jagan, despite being close to Narendra Modi, could not do between 2019 and 2024. Naidu’s 16 MPs have more political influence than Jagan’s 22 MPs in the last Lok Sabha.
However, this did not stop YSRCP from criticizing TDP that it got Rs 15,000 crore “conveniently” while Rs 26,000 crore was “allocated” for Bihar. Terming the budget proposals as “symbolism”, the YSRCP termed it a missed opportunity and said Rs 1.5 lakh crore is needed for the construction of Amaravati. TDP’s defense is that the nature of the fund, whether loan or grant, does not matter as long as it helps in immediate development.
Rahul Gandhi’s allegation would have been confirmed
Despite criticism from the YSRCP, the budget announcements reinforce the slogan of the double engine government in Andhra Pradesh, which emphasizes that when the same parties rule the state and the Centre, it leads to faster economic growth at the grassroots level. Development takes place. However, such a claim would also raise the question why this was not done in the last decade.
After all, when Naidu was part of the NDA between 2014 and 2018, no one stopped the BJP from giving similar generous benefits. The Modi government could have helped the Jagan regime with this generosity, as it largely supported the BJP at the Centre, but it did not do so.
This further strengthens Rahul Gandhi’s allegation that this is a ‘save chair’ budget and that below 272, the BJP has a political compulsion to keep its two most important allies happy.
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Although no one will be upset with Andhra Pradesh and Bihar getting a larger share of the country’s budget, other states like Maharashtra will feel neglected. Voices of displeasure are also being heard from states like Telangana, Tamil Nadu and Bengal. It will be a challenge for the BJP to satisfy other states, because right now it seems that Amravati and Patna are getting their due in return for the support given in New Delhi, making the budget look like an insurance policy.