Andhra Pradesh Budget 2024: From Road, Rail To Infrastructure; Here's What You Need To Know!

Finance Minister Nirmala Sitharaman on July 23 announced the government's plan to facilitate support through multilateral development agencies in Andhra Pradesh. A special focus was given to eastern states and cities of India in the Union Budget document for 2024-25. FM Sitharaman presented her seventh Budget, and first under Modi 3.0 rule.

On Monday, she said, "Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act. Recognizing the state's need for capital, we will facilitate special financial support through multilateral development agencies. In the current financial year, Rs 15,000 crore will be arranged, with additional amounts in future years."

Further, Sitharaman stated that government government is fully committed to financing and early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. This will facilitate our country's food security as well.

Under the Act, she added, for promoting industrial development, funds will be provided for essential infrastructure such as water, power, railways and roads in the Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor.

An additional allocation will be provided this year towards capital investment for economic growth, she said.

FM also announced grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra, as stated in the Act, will also be provided.

For infrastructure investment by central government, FM Sitharaman said, "Significant investment the Central Government has made over the years in building and improving infrastructure has had a strong multiplier effect on the economy."

Further, she said, "We will endeavour to maintain strong fiscal support for infrastructure over the next 5 years, in conjunction with imperatives of other priorities and fiscal consolidation. This year, I have provided Rs 11,11,111 crore for capital expenditure. This would be 3.4 per cent of our GDP."

Additionally, FM encouraged states to provide support of similar scale for infrastructure, subject to their development priorities. She said, "A provision of Rs 1.5 lakh crore for long-term interest free loans has been made this year also to support the states in their resource allocation."

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, "The Union Budget for FY 2024-25 has further strengthened the government's commitment towards long-term social and infrastructure development. The 11.1 lakh crore outlay for capital expenditure, which has risen from 3.3% of GDP in FY 2023-24 to 3.4% in FY 2024-25, will continue to support the agenda for the development of railways, roads, and overall logistics infrastructure in the country. The 12 industrial park projects identified under the National Industrial Corridor Development Program are massive undertakings with the potential to grow economic hubs and boost real estate development along their alignment."