New Delhi:
The 2025 Union Budget is “positive and welcome… progressive and forward-looking”, Bihar Chief Minister Nitish Kumar said Saturday evening, lavishing praise on Finance Minister Nirmala Sitharaman’s speech in the Lok Sabha. Ms Sitharaman’s budget, for FY 2025/26, made mention of several special schemes and welfare measures for Bihar, which will vote in an Assembly election later this year.
Nitish Kumar – who will lead the state’s ruling Janata Dal (United) and Bharatiya Janata Party alliance in that election – declared this budget, the eighth presented by Ms Sitharaman, would “further accelerate the development of Bihar (apart from) increasing pace of development of the country”.
The Bihar leader also heaped praise on Ms Sitharaman for two big-ticket announcements on income tax, i.e., hiking the rebate ceiling from Rs 7 lakh to Rs 12 lakh and rejigging new regime tax slabs.
As a result of the latter move, the Finance Minister had said, money in consumers’ hands, particularly from the middle class, would see a big increase, by as much as Rs 1.1 lakh in some cases.
NDTV EXPLAINS | What Rs 12 Lakh Exemption Means, What If You Earn More
“The middle class has got a lot of relief… Farmers will benefit from increasing the loan limit on ‘Kisan Credit Card’ to Rs 5 lakh, and increasing credit guarantee cover for micro enterprises to Rs 10 crore will increase employment opportunities,” Nitish Kumar wrote in Hindi, declaring, “Many (more) steps have been taken in the interest of the poor, youth, and farmers in the budget, which is welcome.”
केन्द्रीय बजट सकारात्मक एवं स्वागत योग्य है। केन्द्र सरकार का यह बजट प्रगतिशील एवं भविष्योन्मुखी है। इस बजट के माध्यम से केन्द्र सरकार द्वारा देश के विकास की गति को और बढ़ाने के लिए कई कदम उठाए गए हैं। बजट में बिहार के लिए जो घोषणाएं की गई हैं, उनसे बिहार के विकास को और गति…
— Nitish Kumar (@NitishKumar) February 1, 2025
Ms Sitharaman, in her speech, spoke about several measures for Bihar, including the setting up of a board for the makhana, or lotus nuts, industry to oversee and improve manufacturing, processing, and value addition of the product.
READ | Nirmala Sitharaman’s ‘Makhana‘ Gift For Bihar
She also said greenfield airports – referring to those built on previously undeveloped or empty greenfield land – would be set up to meet future aviation needs, including the demand for international flights.
READ | In Budget 2025, Big Gifts For Bihar Ahead Of Polls
The announcements for Bihar, however, were highlighted by the lack of any measures favouring Andhra Pradesh, which is ruled by the Telugu Desam Party, which is another critical BJP ally.
Support of the JDU and the TDP is essential for Prime Minister Narendra Modi’s government to survive, because the BJP, by itself, did not secure enough seats to win the 2024 Lok Sabha election on its own. It required the backing of JDU and TDP MPs both to ensure a third term for Mr Modi.
As a result, no mention of Andhra Pradesh in this budget led to jabs from the Congress.
READ | “Bonanza” For Bihar, Andhra “Cruelly Ignored”: Congress’ Jab
Party spokesperson Jairam Ramesh led that charge, declaring Bihar got a “bonanza” but Andhra had been “cruelly ignored” in Ms Sitharaman’s budget. In a sarcastic X post, he noted that sops for Bihar could be seen as “natural” in this Budget since an election is due there later in the year.
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
“But why has the other pillar of the NDA, namely Andhra, been so cruelly ignored?”
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?”
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.