Budget 2024: Rs 15,000 Crore Allocated for Andhra Pradesh's New Capital, Announces Nirmala Sitharaman
New Delhi: In her seventh consecutive budget presentation, Finance Minister Nirmala Sitharaman announced a significant allocation of ₹15,000 crore for the development of Andhra Pradesh's new capital. This move addresses a critical demand from the state government and highlights the Centre's commitment to supporting Andhra Pradesh's growth.
Key Announcement for Andhra Pradesh
While presenting the Union Budget, Sitharaman stated, "The government will arrange ₹15,000 crore this fiscal and in future years for the development of the capital city of Andhra Pradesh." This funding will be facilitated through multilateral development agencies, ensuring that the state receives the necessary support for its capital development.
Political Context
This announcement comes at a crucial time as TDP Chief Chandrababu Naidu, the Chief Minister of Andhra Pradesh, is a key ally of the BJP. The BJP, relying on its NDA allies to reach the majority mark in the Lok Sabha, has been attentive to the demands of its coalition partners. Naidu had met with Home Minister Amit Shah last week to push for substantial fund allocation in the Union Budget, citing the financial challenges faced by the state post-bifurcation.
Historical Background
Following the bifurcation of Andhra Pradesh and Telangana in 2014, Hyderabad was designated as the shared capital for ten years under the Andhra Pradesh Reorganisation Act, 2014. However, this arrangement ceased on June 2, 2024. Shortly after, on June 11, Naidu declared Amaravati as the sole capital, moving away from the previous government's proposal of three capitals—Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital.
Naidu emphasized the development of Visakhapatnam as the financial capital of the state, focusing on economic growth and infrastructure development.
Addressing Financial Challenges
During his discussions with Amit Shah, Naidu highlighted the ongoing financial struggles stemming from the "unjust bifurcation" and the previous administration's poor governance. The ₹15,000 crore allocation aims to mitigate these issues and support the state's progress.
This budget allocation signifies a major step towards the development of Amaravati and reflects the central government's recognition of Andhra Pradesh's need for a robust and well-developed capital city. The funding is expected to accelerate infrastructure projects and foster economic growth in the region.
