With the Telugu Desam Party (TDP) and the Janata Dal (United) providing critical support to the NDA government, Finance Minister Nirmala Sitharaman on Tuesday announced a major financial package for Andhra Pradesh and plans for mega infrastructure projects for Bihar in the General Budget.

Presenting the Budget in the Lok Sabha, the minister announced an allocation of Rs 15,000 crore for Andhra Pradesh’s development in the current financial year, with an assurance of further funds in subsequent years. Emphasising the government’s commitment to the Andhra Pradesh Reorganisation Act, she also promised grants for the backward regions of the state, specially mentioning the Polavaram Dam project.

For Bihar, Mrs Sitharaman announced plans for new airports, medical colleges, and sports infrastructure. She assured the state government that its requests to multilateral banks would be fast-tracked.

Additionally, Rs 26,000 crore has been earmarked for highways in Bihar, including the Patna-Purnia, Buxar-Bhagalpur, and Bodhgaya-Rajgir-Vaishali-Darbhanga Expressway, along with a new two-lane bridge over the Ganga in Buxar. A 2,400 MW power plant and an industrial corridor node in Gaya were also announced.

Bihar is set to benefit from the Purvodaya initiative, aimed at boosting development in the eastern part of the country. “We will formulate Purvodaya for the all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh,” the minister said, noting that the project would focus on human resources development, infrastructure enhancement, and economic opportunity generation, to make this region a driving force for achieving a developed India.

Both Andhra Pradesh Chief Minister N Chandrababu Naidu and Bihar Chief Minister Nitish Kumar have been lobbying with Prime Minister Narendra Modi and other ministers for generous funds to their respective states in the Budget proposals. The two states have for long been complaining that they have suffered badly in terms of financial and other resources in the wake of their bifurcation.

The announcements in the Budget came a day after the Centre ruled out giving special status to Bihar, which has been one of the key demands of the Janata Dal (United).