The central government has announced a substantial financial package for Andhra Pradesh and Bihar, expected to cost the public exchequer between Rs. 20,000-30,000 crore in the fiscal year 2024-25.
Andhra Pradesh is set to receive Rs. 15,000-20,000 crore, while Bihar is allocated Rs. 5,000-10,000 crore.
The majority of these funds fall under the 'special assistance under the Demand-Transfers to state' category, which saw a significant increase from Rs. 4,000 crore in the interim budget to Rs. 20,000 crore in the full budget for FY25.
This financial support comes in the wake of the recent Lok Sabha election results, where the Telugu Desam Party (TDP) and Janata Dal (United) emerged as crucial allies for the BJP, which fell short of a majority.
The TDP governs Andhra Pradesh, and the JD(U) rules Bihar. Observers view these allocations as a strategic move by the BJP to secure the loyalty of its allies.
TDP chief Chandrababu Naidu and JD(U) leader Nitish Kumar, both former opposition figures, are now key partners in the BJP-led coalition, highlighting the shifting political dynamics and the importance of alliance management in India's current political landscape.