Budget 2025-26: How will FM Nirmala Sitharaman address coalition partners’ hopes amid poll pressure?
Bihar, where elections will be held later this year, is expected to see an increase in allocation; but Andhra Pradesh may not get a huge bump in outlay, sources indicate.
- Jan 21, 2025,
- Updated Jan 21, 2025 7:13 PM IST
As Union Budget 2025-26 nears, all eyes are on Finance Minister Nirmala Sitharaman to see how she will strike a balance between the demands of coalition partners and national priorities. For poll-bound Bihar, where elections will be held towards the end of the year, this Budget represents an opportunity to address long-pending demands that could prove crucial in the campaign.
In July 2024, the NDA government announced several significant projects for Bihar, where the BJP and Janata Dal (United) are running the government, including expressways along four major routes, a two-lane bridge over the Ganga in Buxar, and a 2,400 Mw power plant in Pirpainti, Bhagalpur. The Rs 11,500 crore allocated for flood control measures provided much-needed relief to the state plagued by recurring floods.
However, Bihar’s demands haven’t subsided. In a 32-page memorandum, Bihar’s Deputy Chief Minister and Finance Minister, Samrat Chaudhary, has sought Rs 13,000 crore for flood management in North Bihar, upgrades to Darbhanga and other airports, construction of 10 new Kendriya Vidyalayas, a 1% rebate for additional borrowing, the development of high-speed corridors and more.
Meanwhile, another major beneficiary of the last full Budget, Andhra Pradesh, where the BJP is in alliance with the Telugu Desam Party and Jana Sena, has also asked for additional fiscal support for its river-linking projects. But it is unlikely to see substantial allocations this year, sources say. After receiving a special package of Rs 15,000 crore in the last Budget and an Rs 11,440 crore revival package for the Visakhapatnam Steel Plant, it is believed that further allocations to Andhra Pradesh may be limited in the Budget FY26. Sources suggest that Bihar could receive targeted infrastructure support, especially in light of the elections later this year.
However, states administered by other parties have criticised previous Budgets for favouring some states, such as Andhra Pradesh, at the expense of others.
Chandrima Bhattacharya, Minister of State for Finance of West Bengal, had told Business Today during the 55th GST Council meeting held recently that requests for increase in allocation had not been met. “Bengal is a cyclone-prone state and we have requested support. The centre is likely to give 50% of the 50-year interest free loans towards disasters.”
As Union Budget 2025-26 nears, all eyes are on Finance Minister Nirmala Sitharaman to see how she will strike a balance between the demands of coalition partners and national priorities. For poll-bound Bihar, where elections will be held towards the end of the year, this Budget represents an opportunity to address long-pending demands that could prove crucial in the campaign.
In July 2024, the NDA government announced several significant projects for Bihar, where the BJP and Janata Dal (United) are running the government, including expressways along four major routes, a two-lane bridge over the Ganga in Buxar, and a 2,400 Mw power plant in Pirpainti, Bhagalpur. The Rs 11,500 crore allocated for flood control measures provided much-needed relief to the state plagued by recurring floods.
However, Bihar’s demands haven’t subsided. In a 32-page memorandum, Bihar’s Deputy Chief Minister and Finance Minister, Samrat Chaudhary, has sought Rs 13,000 crore for flood management in North Bihar, upgrades to Darbhanga and other airports, construction of 10 new Kendriya Vidyalayas, a 1% rebate for additional borrowing, the development of high-speed corridors and more.
Meanwhile, another major beneficiary of the last full Budget, Andhra Pradesh, where the BJP is in alliance with the Telugu Desam Party and Jana Sena, has also asked for additional fiscal support for its river-linking projects. But it is unlikely to see substantial allocations this year, sources say. After receiving a special package of Rs 15,000 crore in the last Budget and an Rs 11,440 crore revival package for the Visakhapatnam Steel Plant, it is believed that further allocations to Andhra Pradesh may be limited in the Budget FY26. Sources suggest that Bihar could receive targeted infrastructure support, especially in light of the elections later this year.
However, states administered by other parties have criticised previous Budgets for favouring some states, such as Andhra Pradesh, at the expense of others.
Chandrima Bhattacharya, Minister of State for Finance of West Bengal, had told Business Today during the 55th GST Council meeting held recently that requests for increase in allocation had not been met. “Bengal is a cyclone-prone state and we have requested support. The centre is likely to give 50% of the 50-year interest free loans towards disasters.”