Short Edit: All Eyes On Maharashtra? Patterns Suggest The State May Receive More This Budget, Like Bihar And Andhra

<p>Today is February 1, 2025, the day for the Union Budget presentation by Finance Minister Nirmala Sitharaman. While some of us are still processing where the month of January vanished, others might still be absorbing information from 2024, like the Standard Deduction increase in the New Tax Regime. But today is the day, and in a short while, the Finance Minister will unveil the Budget that will showcase the vision of the Narendra Modi-led BJP government at the Centre. Since this is the first full budget of the new government in power for the third consecutive term, expectations are high&mdash;particularly regarding possible relaxations in income tax. &nbsp;</p> <p>With the Parliament drama unfolding soon, it's interesting to forecast what might happen with the Budget. My one-word prediction: Maharashtra.</p> <h2><strong>Strategic Budget Allocation: A Political Play?</strong></h2> <p>The Union Budget is more than just a statement of the nation's income and expenditure. It is also a strategic tool where allocations to various sectors, states, and institutions reflect not just developmental priorities but also political considerations. While the ruling party at the Centre justifies allocations based on governance goals, past patterns suggest they can also serve as a way to consolidate political power. &nbsp;</p> <p>For instance, after securing victory in the 2024 Lok Sabha elections, the BJP required crucial support from two &lsquo;not-so-reliable&rsquo; allies&mdash;Nitish Kumar&rsquo;s Janata Dal (United) and Chandrababu Naidu&rsquo;s Telugu Desam Party. As Chief Ministers of their respective states, both leaders held significant bargaining power in government formation. With JDU&rsquo;s 12 MPs and TDP&rsquo;s 16 MPs playing a decisive role in the BJP-led NDA coalition, their support was instrumental in ensuring Narendra Modi's swearing-in as Prime Minister for the third time. &nbsp;</p> <p>Cabinet portfolios were allocated, but the rewards didn't stop there. &nbsp;</p> <p>During the Budget presentation in July 2024, Bihar and Andhra Pradesh were handsomely rewarded for backing the BJP at the Centre. &nbsp;</p> <p>Bihar secured projects worth Rs 58,500 crore, spanning infrastructure, power, healthcare, tourism, and flood control. The Centre also allocated Rs 26,000 crore for various road projects. Similarly, Andhra Pradesh was granted Rs 15,000 crore for the development of Amaravati as its capital, alongside additional funding for the Polavaram irrigation project.</p> <h2><strong>Maharashtra In Focus: Will The Budget Bring A Political Payoff? &nbsp;</strong></h2> <p>The 2024 Maharashtra Assembly elections, however, presented a different challenge for the BJP. Initially playing the &lsquo;younger sibling&rsquo; role in supporting the Shinde government, the BJP emerged as the dominant player post-elections. While the Mahayuti alliance (BJP, Shinde-led Shiv Sena, and the Ajit Pawar NCP faction) holds power, internal friction and dissatisfaction have surfaced from time to time. &nbsp;</p> <p>With Maharashtra&rsquo;s political landscape remaining volatile, the Union Budget 2025 could be a strategic moment for the Centre to give more power to the state and in the process please allies. If past trends are any indicator, Maharashtra could see a substantial boost in this year&rsquo;s Budget allocations&mdash;potentially mirroring what Bihar and Andhra Pradesh received last year. &nbsp;</p> <p>All eyes will be on Finance Minister Nirmala Sitharaman as she unveils the numbers. Will Maharashtra be the big winner this time?</p> <p><em><strong>[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal.]</strong></em></p>

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