The Union Budgetary mirage for Andhra Pradesh!

The increased focus on Bihar, underscored by substantial infrastructure investments, raises concerns of political favouritism, particularly as Andhra Pradesh seeks recognition and support.
The Union Budgetary mirage for Andhra Pradesh!
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On February 1, 2025, as the Finance Minister unveiled India’s Union Budget, the air typically brimmed with optimism for States hoping for fiscal support. However, Andhra Pradesh found itself ensnared in an unsettling silence. Amidst economic growth projections of 6.3% to 6.8% for the fiscal year, one would anticipate the State, teeming with potential, to play a leading role in this economic revitalisation. Instead, it appeared on the periphery, grappling with an unexpected scarcity of allocations, shattering hopes that had accompanied previous budget announcements.

The budget introduced several national schemes designed to invigorate growth, including tax reforms to alleviate the middle class’ financial burden and substantial investments in agriculture and infrastructure. Yet, within this broader vision, Andhra Pradesh felt particularly overlooked. Chief Minister N Chandrababu Naidu anticipated a fiscal bonanza that could galvanise his aspirations for a prosperous State, but the allocations presented echoed a distressing trend of insufficient support.

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A significant highlight of the budget was the introduction of a Rs 1 lakh crore Urban Challenge Fund, designed to enhance urban infrastructure across the nation. While this initiative shows considerable promise, many crucial requests from Andhra Pradesh remain only partially fulfilled, particularly those related to the highly awaited Polavaram irrigation scheme. The State received Rs 5,936 crore for this vital project, emphasising the stark disparity between the initial funding appeals and the actual financial support provided.

The increased focus on Bihar, underscored by substantial infrastructure investments, raises concerns of political favouritism, particularly as Andhra Pradesh seeks recognition and support.

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Additionally, the State’s attempts to breathe life into previously discontinued Centrally-sponsored schemes have met with tepid responses, reinforcing a reliance on uncertain goodwill rather than explicit financial commitments. The healthcare landscape remains particularly challenging; even with the proposal to establish daycare cancer centres, the lack of comprehensive upstream intervention highlights significant gaps in support. The evident misalignment between the Centre’s expectations and the developmental realities in Andhra Pradesh is stark.

Intriguingly, although the budget aligns with the ‘Make-in-India’ mantra, Andhra Pradesh continues to face a shortfall in essential investment and infrastructure requisite for its developmental trajectory. This inconsistency illustrates a disconnect between ambitious national goals and actual resource allocation, stifling growth prospects.

Dr Arja Srikanth

Former Special Secretary Government of Andhra Pradesh

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