Budget 2025: Bihar Gets a Bonanza, Andhra Pradesh Cruelly Ignored

Union Budget 2025, Congress spokesperson Jairam Ramesh accused the government of giving Bihar a “bonanza” while "cruelly ignoring" Andhra Pradesh. His comments came right after Finance Minister Nirmala Sitharaman’s 77-minute budget speech on Saturday afternoon.

Ramesh took a dig at the BJP-led National Democratic Alliance (NDA), which includes Bihar's ruling Janata Dal (United) and Andhra Pradesh's Telugu Desam Party. He sarcastically pointed out that the special treatment given to Bihar was understandable, as the state has elections coming up later this year. “It is natural since an election is due there later in the year. But why has the other pillar of the NDA, namely Andhra Pradesh, been so cruelly ignored?” Ramesh tweeted, questioning the government’s priorities.

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

In further tweets, Ramesh criticized several aspects of the budget, mentioning that the country’s economy is suffering from four main issues: stagnant real wages, low consumer spending, sluggish private investment, and a complicated Goods and Services Tax (GST) system. According to him, the budget failed to address these problems effectively, and the only relief provided was for income tax payers. He expressed doubts about the actual impact of the proposed tax relief on the economy.

Congress leader Manish Tewari also criticized the budget, questioning whether it was meant for the entire country or just for Bihar. "Did you hear the name of another state in the entire speech of the Union Finance Minister?" Tewari asked, pointing out the lack of attention given to other regions.

Bihar, which is ruled by Chief Minister Nitish Kumar in alliance with the BJP, was a major focus of the budget speech. Finance Minister Sitharaman made several key announcements for the state, including a proposal to set up a makhana (fox nut) industry. She also said that Bihar farmers would benefit from special central government schemes. The state is set to receive new greenfield airports, and there are plans for a canal project in Mithilanchal. In the education sector, the capacity of Patna’s Indian Institute of Technology (IIT) will be expanded.

These announcements have raised speculation that the government is targeting the upcoming state election in Bihar. Nitish Kumar, who has frequently switched political alliances, is currently back in the BJP-led NDA. The big gifts for Bihar have come just months before the elections, leading many to question the political motives behind the budget allocations.

In last year's budget, Sitharaman also focused on both Bihar and Andhra Pradesh. She had announced Rs 15,000 crore for the development of Amaravati, Andhra Pradesh’s new capital. For Bihar, she had promised Rs 26,000 crore for road projects, new airports, and sports infrastructure, along with Rs 11,500 crore for flood mitigation.

On a national level, the budget included a significant proposal for salaried taxpayers. Sitharaman announced that individuals earning up to Rs 12 lakh annually would not have to pay income tax under the new tax regime. This change is expected to benefit the middle class, providing them with more disposable income to spend, save, or invest.

The Finance Minister emphasized that the goal of these measures is to reduce the tax burden on the middle class and boost household consumption and investment. While the government's focus on Bihar has been clear, critics argue that Andhra Pradesh’s needs were largely overlooked, and the long-term impact of the budget on the economy remains uncertain.