Chandrababu Naidu's TDP and Nitish Kumar's JD(U) have sought about $5.7 billion (nearly Rs 48,000 crore) worth of funds from the Prime Minister Narendra Modi-led Centre ahead of the 2024 Union Budget, which will be tabled on July 23.
According to documents reviewed by Reuters and a source, the two key allies of the BJP have requested these funds (running into thousands of crores) for the current financial year, in addition to a higher borrowing limit for infrastructure projects.
TDP, with 16 MPs and JD(U) with 12, helped the BJP form the government at the Centre in the recently-concluded Lok Sabha elections after the saffron party failed to secure a simple majority.
It was widely expected that both Naidu and Nitish, who have been part of NDA now and then, would push for additional funds for their states in return for playing kingmakers for the BJP.
According to a Bloomberg report, Naidu alone sought financial support of more than Rs 1 lakh crore ($12 billion). The TDP supremo met both Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman earlier this week, where he is said to have pressed for his demands.
Moneycontrol had earlier reported that Andhra Pradesh has sought funds for developing its capital city Amaravati - which is close to CM Naidu - and the Polavaram irrigation project.
Naidu also wants funds for metro projects in Vijayawada, Visakhapatnam, and Amravati, a light rail project, and a Vande Bharat train from Vijayawada to Mumbai and New Delhi. Additionally, he has sought grants for backward districts and support for infrastructure projects like the Ramayapatnam Port and an integrated steel plant in Kadapa.
Meanwhile, Bihar is seeking funds for nine new airports, two power projects, two river water programmes and for setting up seven medical colleges, according to the document.
The period over which funds for these projects are being sought has not been specified.
The two states also want the Centre to nearly double the unconditional long-term loans offered by the government to all states for infrastructure spending to Rs 1 lakh crore ($11.98 billion), Reuters reported.
In the Interim Budget presented by NDA 2.0 on February 1, the government set aside about Rs 1.3 lakh crore as "special assistance to states for capital investment" scheme. Half of this is conditional on the implementation of certain economic reforms.
The states also want more headroom to borrow funds from the market, a limit set by the Centre, according to the document and the source.
Reuters reached out to the Union Finance Ministry but has not got a response yet.
In the Interim Budget, the Centre targeted a fiscal deficit of 5.1% of GDP.
On July 6, Parliamentary Affairs Minister Kiren Rijiju announced that Parliament's Budget Session will be held between July 22 and August 12 while Union Finance Minister Nirmala Sitharaman will present the Budget on July 23.
(With inputs from agencies)
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
