The Union Budget 2025-26 presented by Union Finance Minister Nirmala Sitharaman did not make any special allocations for Andhra Pradesh, except for Polavaram and Vizag Steel about which funds were promised in the past.However, it should not mean that the Centre has not sanctioned anything to the state. Though funds were not shown specially for the state, the package sanctioned for the Vizag Steel Plant helps reveal the fact that funds could be released without a mention in the Budget. Recently, the Centre announced Rs 11,418 crore package to the Vizag Steel Plant but that was not mentioned in the Budget. The sanction materialized due to repeated requests of Chief Minister N. Chandrababu Naidu to Prime Minister Narendra Modi. In the revised estimates of the Budget 2024-25, the Centre had already shown an allocation of Rs 8,423 crore and in the recent Budget presented, it had proposed to grant Rs 2,995 crore. Let us look at the various schemes that would provide maximum benefit to the state. Jal Jeevan Mission which has ended by 2024 was extended till 2028. Andhra Pradesh is the only biggest state in the country without a Metro Rail project. The state government recently sent DPRs seeking Rs 22,000 crore for Visakha and Vijayawada Metro Rail. If the state government can push further, it is likely that the Centre could grant the funds. The Centre proposed to developed 120 new airports in the country and this could help the state government’s vision to establish seven new airports. Udaan scheme and K. Ram Mohan Naidu’s presence as the Civil Aviation minister are an added advantage. Under the Pradhan Mantri Awas Yojana–Urban, the state government can aim to secure Rs 3,000 crore and in the Grameen Yojana scheme, it can get Rs 1,500 crore. With these funds, the state can construct 7 lakh houses in urban areas, 1.60 lakh houses in villages. It is likely that the state could secure Rs 200 crore of the Rs 3,500 crore allocated for Pradhan Mantri Awas Yojana -2 and another Rs 200 crore through the funds earmarked for Industrial Housing. The Budget earmarked Rs 25,000 crore for Maritime Board and TD coalition government’s determination to transform AP as the Gateway for Naval trade could find some breakthrough due to the allocation to the Board. The state government can also get funds from the Rs 10,000 crore sanctioned as Urban Challenge Fund. The rise in loan permit from Rs 5 crore to Rs 7 crore for MSMEs, Rs 20 crore from the earlier Rs 10 crore for Startups could also help benefit the specific sectors. Similarly, the state would also get Rs 57,566 crore as its tax share which means a rise of Rs 7,000 crore when compared to the previous Budget. Modernisation of facilities for the police forces could be done with the special funds earmarked for the state police wings. In this way, the AP state government could benefit from the allocation to various departments, even when funds had not been sanctioned for the state exclusively.
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