Saturday, July 13, 2024

Budget 2024-25: Chandrababu Naidu and Nitish Kumar demand special package from Nirmala Sitharaman. What you need to know

Chandrababu Naidu and Nitish Kumar have demanded around 50,000 crore ($6 billion) for their states from the budget which will be presented by Finance Minister Nirmala Sitharaman on July 23, according to a Reuters report.

The Bharatiya Janata Party (BJP) secured 240 seats, falling short of a majority of 272 seats. The NDA government was formed with the help of its major allies, Chandrababu Naidu and Nitish Kumar. Naidu’s Telugu Desam Party (TDP) and Nitish Kumar’s Janata Dal (United) won 28 seats in the Lok Sabha election for which the results were announced on June 4.

The two states have demanded around 48,000 crore as additional funds for FY 25, according to the report.

Additionally, the states asked to almost double the 1 lakh crore interest free long-term loans for capital expenditure offered by the centre, the report said.

The centre had set aside 1.3 lakh crore for ‘special assistance to states for capital investment, in the interim budget presented in for 2024-25 similar to the previous fiscal year.

The states want relaxation to borrow from the market too.The Union government has limited the borrowing limit to 3% of the State’s income or Gross State Domestic Product (GSDP), the report said.

Bihar specifically sought funding for nine new airports, two power projects, two river water programmes and to set up seven medical colleges with no specific timeline to disburse the funds.

Andhra Pradesh has demanded funds for developing Amaravati, the capital of the state and an irrigation project, the report said.

The government has targeted a fiscal deficit of 5.1% of GDP in the interim budget presented in February.

(With inputs from Reuters)

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