Historical Context
For the first time in several years, the Union Budget has mentioned Andhra Pradesh (AP) and allocated numerous sops for the state. Historically, between 2004 and 2014, both the central and AP governments were led by the Congress party. Despite having 33 MPs from AP, the state did not receive proper allocations in the Union Budget. This lack of focus was largely due to the intense agitation for and against the separate Telangana statehood, which consumed the attention of AP leaders and citizens, diverting their focus from advocating for budget allocations.
Between 2014-2024, the BJP held an overwhelming majority in the NDA government. During this period, AP chief ministers, whether it was Chandrababu Naidu (CBN) or YS Jagan Mohan Reddy (Jagan), were not in a strong position to command significant attention from the BJP-led central government.
Current Scenario: Modi Government’s Coalition Dependence
In the current political scenario, with stringent margins, the Modi government is heavily relying on coalition partners in AP and Bihar. This dependence was evident in the Union Budget, as both Bihar and AP received the lion’s share of allocations. AP got good support for Amaravati and Polavaram in the budget.
While leaders from Telangana, including KTR and Revanth Reddy, lamented the insufficient allocations for their state, they also highlighted the generous allocations for AP. KTR, in particular, enumerated each allocation given to AP and questioned why Telangana was neglected by the BJP.
YSRCP’s Dilemma
These developments have put the YSR Congress Party (YSRCP) in a quandary. Praising the budget and the allocations for AP would indirectly mean lauding the efforts of the TDP-BJP-Janasena government in AP for successfully convincing the center to allocate more funds. To navigate this tricky situation, Sakshi, a media outlet closely associated with YSRCP, initiated a different narrative.
Also Read : Naidu thanks finance minister for budget allocations
Sakshi’s Propaganda
Sakshi propagated that while the Union Budget provided direct funds to Bihar, the allocations for AP were primarily in the form of loans, which they argued is detrimental to the state. However, this argument is flawed in two significant ways:
Nature of Loans for Development Projects vs. Revenue Expenditure:
Loans taken for development projects (capital expenditure) differ significantly from those taken for running the government (revenue expenditure). Capital expenditure loans are aimed at developing the state’s infrastructure and long-term growth, making them a worthy investment. Conversely, loans taken for regular maintenance, such as salary payments, do not yield future dividends and can harm the state’s financial health. For example, if a family head takes an education loan for his children, it is an investment in their future. However, if he takes loans for daily expenses or luxuries, it can lead to financial ruin.
Union Government’s Loan Guarantees:
The Union Government guarantees these loans, offering them at extremely low-interest rates with a repayment period starting after 30 years. If these loans are utilized correctly, they can significantly contribute to the development of AP.
YSRCP’s Confusion and Political Strategy
It appears that YSRCP and Sakshi anticipated that the BJP-led central government would not allocate substantial funds to AP, allowing them to criticize the NDA government in AP and tarnish the image of CBN. However, the unexpected allocations have left YSRCP and Sakshi confused about how to respond. Their attempt to downplay the significance of the allocations by focusing on the nature of the funds (loans versus direct funds) seems to be a desperate measure to maintain their political narrative.
The generous allocations for Andhra Pradesh in the Union Budget should be seen as a positive step towards the state’s development. While political narratives and biases may influence reactions, it is essential to focus on how these funds can be effectively utilised for the betterment of AP.
– ZURAN (@CriticZuran)
