Finance Minister Nirmala Sitharaman affirmed that, as in previous years, all states have received their allocations in the Union Budget for 2024-25, with no state being excluded from funding.
In a detailed conversation with Sanjay Pugalia, CEO and Editor-in-Chief of NDTV Network, Sitharaman dismissed the opposition’s assertion that her Budget speech only highlighted two states—Andhra Pradesh and Bihar—both governed by key allies of the BJP.
She clarified that the central government is legally obligated to support Andhra Pradesh following its bifurcation in 2014.
“States are receiving their allocations just as they have in the past… no state has been left out. The Andhra Pradesh Reorganisation Act mandates that the Centre assist in building the new capital and developing underdeveloped regions,” she stated.
Sitharaman highlighted that numerous measures have been implemented over the past decade, in line with the Act, including support for the Amaravati capital project and the Polavaram irrigation scheme. Although the Polavaram project has faced delays due to technical issues, the state government is addressing them, she added.
In response to Congress President Mallikarjun Kharge's criticism that her speech focused on only two states, Sitharaman remarked, “Regarding his point about the limited mention of states… The Congress was in power for many years and presented numerous Budgets. They should understand that not every Budget allows for the inclusion of every state.”
She also emphasized that the Budget aligns with Prime Minister Narendra Modi’s preference for simplicity, aiming to make financial matters comprehensible to a broader audience rather than just experts.
“We present everything transparently. There is no hidden fine print… We ensure that any adjustments are communicated clearly, based on feedback and transparent processes,” she noted.
The Finance Minister discussed the necessity of borrowing for a growing economy, while emphasizing her focus on reducing debt without compromising economic growth.
She explained that while setting a fiscal deficit target and working towards it annually with temporary measures is one approach, it’s not always the best macroeconomic strategy.
“We have opted for a more sustainable approach to reduce the fiscal deficit. It’s not just about the target number but the methodology used to achieve it. Borrowing is essential for economic growth, but it’s crucial to manage the amount borrowed and its application,” Sitharaman concluded.
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