FM Nirmala Sitharaman Allocates ₹15,000 Cr for Andhra Pradesh's New Capital in Budget 2024
In her Budget 2024 speech, Finance Minister Nirmala Sitharaman announced a significant allocation of ₹15,000 crore along with additional financial assistance for the development of Andhra Pradesh's new capital. This move aims to accelerate the region's growth and infrastructure development, positioning the new capital as a major hub for economic activity in the state.
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2024, announced a substantial allocation of ₹15,000 crore for the development of Andhra Pradesh's new capital. In her Budget speech in the Lok Sabha, FM Sitharaman emphasized that the Centre will provide special financial support through multilateral agencies to aid the state's capital development project.
FM Sitharaman highlighted the government's commitment to fulfilling the promises made in the Andhra Pradesh Reorganisation Act and addressing the developmental needs of the state's new capital. She stated, "Recognizing the state's need for a capital, we will facilitate special financial support through multilateral agencies. In the current fiscal year, ₹15,000 crore will be arranged, with additional amounts in future years."
Regarding the development of essential infrastructure, Sitharaman added, "Under the Andhra Pradesh Reorganisation Act, funds will be provided for critical infrastructure such as water, power, railways, and roads to promote industrial development."
She also acknowledged the necessity of granting aid to backward regions within the state as stipulated in the Andhra Pradesh Reorganisation Act. "Grants for the backward regions of Rayalseema, Prakasam, and North Coastal Andhra, as stated in the Act, will be provided," she affirmed.
This announcement aligns with the demands of the Andhra Pradesh government, led by NDA ally TDP, which requested ₹15,000 crore to develop Amaravati as the new capital of the state. The Telugu Desam Party (TDP) has emerged as a key ally for the National Democratic Alliance, playing a crucial role in the Lok Sabha election 2024, where the NDA was elected into power for the third time.
Following the bifurcation of the state into Andhra Pradesh and Telangana in 2014, Hyderabad served as the common capital for both states for ten years under the Andhra Pradesh Reorganisation Act, 2014. As of June 2 this year, Hyderabad ceased to be the capital city of Andhra Pradesh.
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