Budget 2025: As Bihar eyes lion's share, will Modi keep Nitish happy in poll year?
Having successfully managed to extract a hefty Budget allocation from the Narendra Modi-led government at the Centre for Bihar despite having to push its demand for a special status on the backburner in July last year, the Nitish Kumar-led government has put forth a list of key demands for the state for the upcoming Budget for the year 2025-26.
The Centre's allocations for the state will be keenly watched as it is the only state other than Delhi that is scheduled to go to polls during the calendar year. While Delhi will vote on February 5, Bihar is slated to see elections during the October-November period.
Bihar's wish list to Centre
In its 32-page memorandum submitted to Union Finance Minister Nirmala Sitharaman last month, Deputy CM and BJP leader Samrat Chaudhary listed key demands including a collaboration with bordering Nepal for the construction of dams to tackle the perennial issue of flooding in the north Bihar region.
The memorandum also pointed to the requirement of additional bridges and culverts for efficient water drainage during the rainy season and sought an allocation of Rs 13,000 crore for its construction. The state has also sought an additional borrowing limit suggesting a 1% GSDP rebate for Bihar until its per capita income reaches the national average.
To boost the aviation infrastructure Chaudhary called for the upgradation of Darbhanga airport to international status along with the provision of new Greenfield airports in Rajgir and Bhagalpur districts besides funding for the Raxaul airport.
Other demands submitted by the state include establishment of 10 new Kendriya Vidyalayas, approval for a small modular reactor (SMR) for nuclear energy and the construction of high-speed corridors, among others.
What Bihar got in Budget 2024-25
In its first Budget presented in July last year, the BJP's attempts to keep Nitish, a leader infamous for his flip-flops, in good spirits. In the Union Budget 2024-25, the Finance Minister announced support for several standalone infrastructure projects in the state. Under this, Rs 26,000 crore was allocated for developing four specific road projects, Rs 21,400 crore for power projects and Rs 11,500 crore was set aside for flood management.
New airports, medical colleges and sports infrastructure in the state were part of the promises. FM Sitharaman also said additional allocation would be made to support capital investments and that the Centre would expedite the requests of the Bihar government for external assistance from multilateral development banks.
Why Bihar is crucial
With the state headed for Assembly polls later this year, the stakes are high for the NDA as well as the BJP which shares power with the JD(U) both at the Centre as well as in the state. After a laclustre performance in the Lok Sabha elections last year, the BJP is now dependent on allies like the JD(U) and Andhra Pradesh's ruling Telugu Desam party led by CM Chandrababu Naidu to remain in power at the Centre.
In Bihar, the JD(U) has been in power for two decades now, despite its frequently changing equations with the BJP. The stakes are high for the BJP which has failed to win majority on its own and has to depend on the JD(U) to remain in power in the state. Moreover, the party also needs to keep its winning momentum going after poll victories in Haryana and Maharashtra to limit the Opposition's narrative against it.
The pressure on the JD(U) is also mounting with 'Sushasan Babu', as Nitish is known in Bihar, facing a potent threat from his foe-turned-friend-turned-foe Rashtriya Janata Dal which emerged as the single-largest party in the Assembly elections last year and is keen on occupying prime space in Bihar in the long term.
The JD(U)-BJP combine has so far used a mix of factors to set it apart from the 'jungle raj' of the Lalu era. The improved law and order situation has been Nitish's hallmark since assuming power in the state, as has the improved power scenario and the condition of roads.
With Modi at the helm at the Centre, the BJP's projection of the PM as 'Vikas Purush' has added another dimension to the NDA in Bihar. All said and done, the proof will lie in the pudding and Nitish will be under immense pressure to secure the best deal for Bihar.
The Finance Minister is scheduled to present the Union Budget 2025-26 on Saturday, February 1 at 11 AM.
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