Chandrababu Naidu, Nitish Kumar Demand Rs. 50,000 Crore In Budget

Chandrababu Naidu and Nitish Kumar have requested approximately Rs. 50,000 crore ($6 billion) for their respective states in the upcoming budget to be presented by Finance Minister Nirmala Sitharaman on July 23, as per a Reuters report.

Following the Bharatiya Janata Party (BJP) securing 240 seats, forming the NDA government with the support of key allies Chandrababu Naidu’s Telugu Desam Party (TDP) and Nitish Kumar’s Janata Dal (United), the demand stems from their combined 28 seats won in the recent Lok Sabha elections, results of which were declared on June 4.

The states are seeking around Rs. 48,000 crore as additional funds for FY 2025, and are also advocating for nearly doubling the Rs. 1 lakh crore interest-free long-term loans for capital expenditure provided by the central government, according to the report.

In the interim budget for 2024-25, the central government earmarked Rs. 1.3 lakh crore for special assistance to states for capital investment, similar to the previous fiscal year. Additionally, the states are pushing for relaxed borrowing conditions from the market. Currently, the Union government restricts borrowing to 3% of the State’s income or Gross State Domestic Product (GSDP), the report noted.

Bihar has specifically requested funding for nine new airports, two power projects, two river water initiatives, and the establishment of seven medical colleges, without a specified timeline for the disbursement of funds. Andhra Pradesh is seeking financial support for the development of Amaravati, the state’s capital, and an irrigation project, according to the report.

The government’s interim budget presented in February aims for a fiscal deficit target of 5.1% of GDP.