View | What is at stake with the increased Budget allocations to AP and Bihar – CNBC TV18

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The Budget announcement by Finance Minister Nirmala Sitharaman allocating funds for Andhra Pradesh and Bihar resulted in sharp exchanges from across the aisle in Parliament. The Opposition is seeking to build upon the perception that Prime Minister Narendra Modi-led government in its third tenure under political compulsion opened the purse for the two key partners — Telugu Desam Party and Janata Dal (United) in the National Democratic Alliance.

The combined I.N.D.I.A opposition is whipping up lather over the vulnerability of the Modi Government 3.0 with survival at stake. The munificence with monies in Central Budget for Andhra Pradesh (AP) and Bihar was dictated by compulsion rather than conviction.

The  opposition argument revolves around the approach of the previous two NDA governments which during the last decade, rejected demands from these two allies for a special status and extra funds. Both the TDP and the JD (U) have in the past snapped ties with the BJP on the issue.

Soon after the Budget proposals were made public, attention was drawn to the allocations of funds to Andhra Pradesh to develop and re-start the stalled  state capital project at Amravati while Bihar was identified to receive  allocation to develop stand-alone infrastructure projects.

Ironically, during the discussion of Budget proposals members belonging to TDP and the JD (U) walked an extra mile to praise the allocations while their political opponents mentioned that some of these measures have been announced earlier too but remained on paper.  

For instance, the YSR Congress leader in Rajya Sabha V. Vijay Sai Reddy contested the State was being given allocations stating the ₹ 15,000 crore for Amravati was a loan being arranged. The State will have to bear the interest and contrary to understanding the sum was not a grant. There was concern over allocation to the Polavaram irrigation project pending for two decades.

Around the time, in the other Telugu speaking state of Telangana, the state assembly adopted a resolution seeking justice and amendment to the Budget proposals accordingly. The resolution moved by Chief Minister A. Revanth Reddy found support from the Bharat Rashtra Samiti and the AIMIM with the BJP walking out. The play of politics  on claim for resources is out in the open. 

In Bihar, the state government headed by Chief Minister Nitish Kumar and his JD (U) appeared satisfied with the slew of announcement that added up to over ₹60,000 crore in various projects including grand plans to tackle perennial floods. Members from opposition Samajwadi Party in neighbouring Uttar Pradesh were critical that the state which sends the largest contingent to the Lok Sabha was ignored for political reasons and scoffed at the idea of talk of controlling floods in Bihar when swollen river waters affect UP as well.

The cut and thrust of the Opposition debate was that the government showered special funds to Andhra Pradesh and Bihar charging that States where parties opposed to the BJP were in government, the Budget simply looked askance.

The battle for more pie from the central budget is understandable as states are hard-pressed for funds amid constant jostling over allocations to sustain welfare measures. With this Budget, the opposition found an issue to whip the government and accused it of playing favourites. 

On its part, the government made an effort to highlight allocations for the States of AP and Bihar separately. The political compulsion was that it could not be seen in a position indicating a reversal of its stand on rejection of special status demand. Yet, allies from these two States had to be granted a position to defend association with the NDA as a win-win situation.

In AP, Chief Minister Nara Chandra Babu Naidu who made a comeback this summer has another chance to redeem his promise of rebuilding the state after bifurcation in 2014. His dream projects are incomplete and the next few years offer a small window to push for completion and leave a lasting legacy.

Bihar and JD (U) dictates are different as the state is headed for assembly polls next year.  In the saddle for the last two decades, CM Nitish Kumar who fashioned himself as an effective and efficacious administrator will have to prove his decision to re-join the NDA was the best thing to happen for the people of Bihar. In the end, politics is about perception and its management.



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