The Union Budget unveiled big-ticket measures for Bihar, proposing an outlay of Rs 26,000 crore for various road projects in the state and outlining plans for new airports and sports infrastructure. The government will also provide a total of Rs 11,500 crore to the state for flood mitigation.

Finance Minister Nirmala Sitharaman said the government will arrange financial assistance to Bihar through aid from multilateral development agencies. She also said that Rs. 20,000 crore will be allocated for the highways in the state. The government will also set up airports, medical colleges, and sports infrastructure in Bihar.

“New airports and sports infrastructure will be constructed in Bihar and additional allocations to support capital investment will be provided…the request of Bihar government for external assistance from multilateral development banks will be expedited,” Sitharaman said.

The minister also spoke of power projects, including setting up a 2400 MW power plant at Pirpainti (Bihar), which will be taken up at a cost of Rs 21,400 crore. 

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Meanwhile, Sitharaman announced a Rs 15,000-crore allocation for the development of the state capital, Amaravati, besides committing to expediting the Polavaram Irrigation Project. Chief Minister Chandrababu Naidu, whose TDP is a key constituent of the ruling National Democratic Alliance, had been pushing the Centre to address the long-standing commitments under the Andhra Pradesh Reorganization Act to the state, which is without a capital city even a decade after bifurcation.

According to PTI, the funds will be facilitated through multilateral development agencies this fiscal year, with the promise of additional amounts in the future. The finance minister also committed to expediting the Polavaram Irrigation Project, describing it as "the lifeline for Andhra Pradesh and its farmers" and linking its completion to national food security.

What Funds To Bihar And Andhra Mean?

The Prime Minister Narendra Modi-led team and the Finance Ministry have successfully managed to sail through the complexity of special status demands for states. By bypassing these complications, the BJP has limited the controversy. Also, the finance minister, instead of providing special financial assistance, has addressed regional development needs besides maintaining political harmony, ensuring continued support, and safeguarding the federal balance.

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For Andhra Pradesh, the Union Finance Minister has worked around the Andhra Pradesh Reorganisation Act to allocate special funds to the state. Under this act, the Modi government has now recognised Amravati as the capital of Andhra Pradesh. 

Over the past several decades, many states have been granted special status at various times. The grant addresses primarily unique socio-economic and geographic challenges. Himachal Pradesh and Uttarakhand were granted special status for having difficult and diverse interior terrain. Under special status, the states generally receive funding and tax incentives.

(With input from agencies)