NEW DELHI : Last year’s budget was Andhra’s Diwali, this time it is Bihar’s Holi. The Narendra Modi government ensured that the speech paid special attention to the political aspects of the budget.
Nirmala Sitharaman’s announcements for poll-bound Bihar, Makhana Board, Food Processing Institute, a greenfield airport near Patna, capacity expansion of the existing Patna airport and IIT Patna and most importantly, financial assistance for the Western Koshi Canal Project for Bihar’s flood-prone Mithila region point to electoral gains.
This time, she focused her attention on Bihar, especially after Nitish’s Janata Dal (United) MPs gave their critical response to the proposed implementation of the Uniform Civil Code and the draft regulations of the University Guidelines Commission. The opposition has accused the BJP of a “Kursi Bachao Budget” to benefit its key allies Janata Dal (United) and Telugu Desam Party by giving budgetary prominence to Bihar and Andhra Pradesh.
In fact, Nitish Kumar and Nora Chandrababu Naidu have put the BJP and the Modi government in a dilemma. Both parties and their leaders have made it clear that the National Democratic Alliance (NDA) is based on the principle of give and take. Both Nitish and Sitharaman needed to stop criticising their coalition government ahead of the elections for several reasons. The Modi government has been forced to follow coalition dharma. Nitish and Naidu have ensured that they will have to continue doing so in return for support.
On the lines of her July 2024 budget, in which she announced several measures to support Andhra Pradesh, Sitharaman has this time focused her attention on Bihar. Bihar is due to go to assembly elections later this year. In July 2024, soon after returning to power for the third time, Sitharaman’s budget announced an outlay of Rs 15,000 crore for the development of Amaravati, the proposed capital of Andhra Pradesh. She also said it was committed to funding the much-delayed Polavaram irrigation project in Andhra Pradesh, which has been one of Naidu’s prestige issues. In addition, backward region grants have also been announced for three districts of the state. At the time, what went unnoticed because of her emphasis on Andhra Pradesh was that Sitharaman also announced an outlay of Rs 26,000 crore for road and other infrastructure projects in Bihar.
A closer look at the budget documents shows that Bihar may get a lower share in the transfer of taxes which may have an impact on the state’s economy. “According to an estimate, the new Finance Commission’s recommendations will reduce tax transfers to Bihar by at least 1%.” The income tax slabs have been cut ahead of the Delhi and Bihar assembly elections, which is seen as a politically lucrative move.
Apparently, the hope of assistance for the ambitious Western Kosi Canal project has also been fulfilled with this budget. The budget announcement will provide irrigation facilities to an additional 50,000 hectares of land, which will increase agricultural production in Mithila and improve the income of farmers. Also, the impact of Kosi river floods will also be reduced.
The announcement of a Greenfield International Airport in Bihar as well as the expansion of Patna Airport is very important. These announcements will significantly improve air connectivity in Bihar and direct flight services to foreign countries will also be started.
Apart from this, the announcement of expansion of Patna IIT and establishment of new educational institutions like National Institute of Food Technology will lead to further advancement in the field of education and research in Bihar. The special announcements in the interest of Bihar are also being considered attractive from a political point of view.

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