Poll-bound Bihar takes the cake, Opposition states left in cold
The first full-year Budget of Prime Minister Narendra Modi’s third term bears a stamp of realpolitik with tax relief for the middle class, a stand-out announcement in Finance Minister Nirmala Sitharaman’s speech to the Lok Sabha on Saturday.
An alienated middle class was widely believed to have triggered the 2024 Lok Sabha shocker for the ruling BJP, which failed to touch the simple majority mark of 272 in the Lok Sabha and was halted at 240 seats, forcing the government to seek out allies.
Now, this much-awaited relief for the salaried class comes just four days ahead of February 5 Delhi elections and on the eve of another crucial Assembly poll in Bihar later this year.
Andaman, Lakshadweep find mention
- All state-specific announcements involve the BJP or NDA-ruled states — Bihar, Gujarat, Assam and the North-East (where the NDA or the BJP rule except in Mizoram)
- The only other region to receive a mention in the FM’s speech was Andaman and Nicobar and Lakshadweep Islands
- Relief for middle class four days ahead of the Delhi Assembly elections
“PM Modi has always believed in the admirable energy and ability of the middle class in nation-building. The middle class needed to be rewarded... Our government is committed to keeping an ear to the ground and a finger on the pulse, and responding while balancing our nation-building efforts,” the FM said while announcing personal income tax reforms.
She also showered five doles on Bihar where the BJP rules with its key NDA ally the Janata Dal (United).
Importantly, all state-specific announcements in Sitharaman’s Budget involve the BJP or NDA-ruled regions — Bihar, Assam, Gujarat and the North-East (where the BJP and the NDA rule in all states expect Mizoram).
There is no specific announcement for any opposition party-ruled state or for states in the north.
The only other region barring Bihar, Gujarat, Assam and the North-East to find a mention in Sitharaman’s Budget speech was Andaman and Nicobar and Lakshadweep Islands.
Bihar, however, took the cake, much to the chagrin of opposition MPs who reacted angrily every time Bihar was named. Earlier, just when Sitharaman began her Budget speech, the Opposition, led by the SP and the Congress, briefly walked out to protest the Maha Kumbh stampede killings. They returned within minutes.
The FM’s five major announcements for the eastern state included the establishment of a Makhana Board to aid makhana farmers of Bihar; setting up of a new National Institute of Food Technology, Entrepreneurship and Management in the state to boost food processing activities in the entire eastern region; expansion of the IIT-Patna infrastructure; new greenfield airports in addition to the expansion of the Patna airport and brownfield airport at Bihta and financial support for the Western Koshi Canal Project to benefit farmers cultivating over 50,000 hectares of land in Mithilanchal.
What other states got
gujarat: To attract and promote additional activities in the International Financial Services Centre (IFSC) in Gujarat, the Budget proposed specific benefits to ship-leasing units, insurance offices and treasury centres of global companies which are set up in the IFSC; the Budget also proposed to exempt the proceeds received on life insurance policy issued by the IFSC insurance intermediary office without the condition on maximum premium amount.
north-east: As part of the new modified air connectivity scheme to be launched to connect 120 new destinations by air and carry four crore passengers over the next 10 years, helipads and smaller airports in hilly, aspirational and North-East region districts will be added.
assam: To augment the urea supply, a plant with an annual capacity of 12.7 lakh metric tonnes will be set up at Namrup, Assam.
andaman & nicobar and lakshadweep islands: The government will bring an enabling framework for sustainable harnessing of fisheries from the Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.
