Budget and the grouse over bias

It has been widely noted that the Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, had a disproportionate, overwhelming focus on Bihar. The state received special attention in the form of allocations and proposals. A makhana board is to be set up to boost the production, processing and marketing of fox nuts for Bihar, the main producer of makhana in the country. A National Institute of Food Technology has been announced in the state to cater to the food processing needs of the eastern region. Financial support for strengthening the Western Kosi Canal in Mithilanchal and infrastructure development for greenfield airports, hostels etc has been announced as well. The capacity of IIT Patna is set to be expanded. The Finance Minister mentioned Bihar many times in her speech and for those who care for optics, even wore a sari with a Madhubani motif.

There are obvious political reasons behind the largesse. The government at the Centre depends crucially on the support of Nitish Kumar’s Janata Dal (U), the BJP’s partner in the ruling NDA. Bihar is slated to go to the polls in October this year, and the budgetary proposals for the state may be seen as electoral sops. Andhra Pradesh – where another BJP ally, the Telugu Desam Party (TDP), is in power – also had enough to cheer about. There is criticism that such selective bonanzas would make the budget a political document rather than a financial plan for the country. Politics has always influenced budgets but too much of it would make it a partisan exercise.

While the budget has been criticised for the special attention it accorded to Bihar and Andhra Pradesh, there are complaints that it discriminated against states from the South which are ruled by non-BJP parties. All states except Andhra Pradesh have expressed displeasure over what they called a raw deal. Karnataka Chief Minister Siddaramaiah described the budget as “disappointing.” The Chief Ministers of Tamil Nadu, Telangana and Kerala have said that their demands and needs were ignored. West Bengal, Punjab and Himachal Pradesh have voiced the same sentiment. It has been pointed out that the northern states received higher allocations and the better-performing southern states got less. No state is ever happy with what it gets and it is difficult to satisfy all. However, important national endeavours such as the budget should not leave an impression of being discriminatory. The resources are scarce. They should be distributed justly and fairly; politics should not be allowed to rule over economic considerations.

Track Budget reactions LIVE

Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.