All States Receive Funds in Union Budget 2024-25: FM Sitharaman
Finance Minister Nirmala Sitharaman assured that all states have been allocated funds in the Union Budget 2024-25, maintaining the tradition of equitable distribution from previous years. In an exclusive interview with Sanjay Pugalia, CEO and Editor-in-Chief of NDTV Network, Sitharaman refuted opposition claims that her Budget speech favored only Andhra Pradesh and Bihar, both governed by key allies of the BJP.
Sitharaman emphasized that the Centre is legally obligated to support Andhra Pradesh following its bifurcation in 2014. "States are receiving allocations as they did in the past. No state has been denied anything. The Act (Andhra Pradesh Reorganisation Act) requires the Centre to support the state in building its capital city and developing the backward regions", she explained.
The Finance Minister highlighted several initiatives undertaken over the past decade in compliance with the Act, including support for the new capital at Amaravati and the Polavaram irrigation project. "Polavaram should have been completed by now, but there were some technical issues. The state government is seized of the matter", she said.
Addressing criticism from Congress President Mallikarjun Kharge, Sitharaman stated, "The Congress was in power for a long time. They presented many Budgets and should know that in every Budget, you don't get an opportunity to name every state of the country". She reiterated that the Budget process under Prime Minister Narendra Modi is designed to be transparent and straightforward, ensuring that financial details are accessible to the general public, not just experts.
"We present everything upfront. There is no fine print. We ensure that any changes made are communicated openly, based on feedback and transparent processes", she pointed out.
Sitharaman also discussed the necessity of borrowing for a growing economy, emphasizing the importance of balancing debt reduction with economic growth. "Fixing a number for the eventual fiscal deficit and working towards it with temporary solutions every year can be one way of going about things, but it is not the right way from a macroeconomic perspective", she argued.
The Finance Minister explained that the government's strategy involves a gradual approach to achieving fiscal deficit targets. "We have chosen a healthy option for getting the fiscal deficit closer to the number. Instead of looking at the number alone, it is also about the way you decide to get there. An obvious method for every country is to reduce debt, but borrowing is a must for a growing economy. The question is how much are you borrowing and where it is being used", she said.
