"Bonanza" for Bihar, Andhra "cruelly ignored": Bug Bugs on the Budget

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Bihar got a "bonanza" but Andhra Pradesh has been "cruelly ignored" in the Union Budget 2025, Congress spokesperson Jairam Ramesh said Saturday afternoon, shortly after Finance Minister Nirmala Sitharaman's 77-minute budget speech.


In a jab at the BJP-led National Democratic Alliance - of which Bihar's ruling Janata Dal (United) and the Telugu Desam Party in power in Andhra are key members - Mr Ramesh noted sarcastically that sops for Bihar are "natural since (an Assembly) election is due there later in the year".


"It is natural since an election is due there later in the year. But why has the other pillar of the NDA, namely Andhra Pradesh, been so cruelly ignored?" Mr Ramesh posted on X.


In a series of further tweets he also criticised various aspects of the budget, noting the economy suffers from four related crises - a), stagnant real wages, b) lack of buoyancy in mass consumption, c) sluggish rates of private investment, and d) a complicated GST (Goods and Services Tax) system


"The Budget does NOTHING to address these illnesses. The only relief has been for income tax payers. What actual impact this will have on the economy remains to be seen..." he said.


Bihar appears to have got a bonanza of announcements. It is natural since elections are due there later in the year. But why is the other pillar of the NDA, namely Andhra Pradesh, been so cruelly ignored?
— Jairam Ramesh (@Jairam_Ramesh) February 1, 2025



Mr Ramesh's party colleague, Manish Tewari, also hit out on this issue.


"I fail to understand... was this a budget of Government of India or Government of Bihar? Did you hear the name of another state in the entire speech of the Union Finance Minister?"


Bihar, where Chief Minister Nitish Kumar is allied (again) with the BJP, received attention from Ms Sitharaman in her address today. This attention included a proposal to set up a makhana (fox nut or lotus nut in English) in the state. Bihar farmers will also get special benefits from the central government's applicable schemes, the Finance Minister said, to loud cheers from Treasury benches.


Bihar is also set to get greenfield airports as part of a civil aviation push, Ms Sitharaman said.

READ | 

In Budget 2025, Big Gifts For Bihar Before Assembly Election


She also announced a canal project in the Mithilanchal region of the state and in the education sector, she said the capacity of Patna's Indian Institute of Technology, or IIT, will be increased.

Focus On Bihar Before Poll?

The big gifts for Bihar come months ahead of a significant election in a state where Nitish Kumar has led his JDU in several flip-flops over the years, jumping from BJP's camp to the opposition.


In July last year, when Ms Sitharaman presented her seventh consecutive budget (and the first full one of Prime Minister Narendra Modi's third term), both states were in focus. The Finance Minister announced significant financial aid for Andhra and major infrastructure projects in Bihar.


For Andhra, she had said the centre would provide Rs 15,000 crore for the purpose of developing Amaravati, the state's new capital. Bihar, meanwhile, got Rs 26,000 crore for road projects and promises of new airports and sports infrastructure, as also Rs 11,500 crore for flood mitigation.

Big Income Tax News

Meanwhile, in her speech Ms Sitharaman offered big-ticket announcements for the salaried class, with focus on revising income tax slabs and declaring no tax dues for people earning up to Rs 12 lakh.

READ | 

Giant Tax Relief For Middle Class: No Income Tax Till Rs 12 Lakh


All of this, Ms Sitharaman said, will "substantially reduce tax burden on middle class and leave more money in their hands". It will also boost household consumption, savings, and investment, she said.


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