FM Sitharaman Assures Equitable Allocation of Funds in Union Budget 2024-25
Finance Minister Nirmala Sitharaman assured that all states have been allocated funds in the Union Budget 2024-25, consistent with previous years. In an exclusive interview with Sanjay Pugalia, CEO and Editor-in-Chief of NDTV Network, Sitharaman dismissed opposition allegations that her Budget speech focused only on Andhra Pradesh and Bihar, both governed by key BJP allies.
Sitharaman highlighted the Centre’s legal obligation to support Andhra Pradesh following its 2014 bifurcation. "States are receiving allocations as they have in the past. No state has been excluded. The Act (Andhra Pradesh Reorganisation Act) mandates the Centre to aid the state in building its capital and developing backward regions", she explained.
The Finance Minister pointed to numerous initiatives over the past decade in line 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 technical issues. The state government is addressing the matter", she said.
Responding to criticism from Congress President Mallikarjun Kharge, Sitharaman remarked, "The Congress has been in power for a long time. They have presented many Budgets and should understand that it's not possible to mention every state in each Budget speech", She reiterated that the Budget process under Prime Minister Narendra Modi aims to be transparent and simple, making financial details accessible to the general public, not just experts.
"We present everything openly. There is no fine print. Any changes are communicated clearly, based on feedback and transparent processes", she stated.
Sitharaman also discussed the necessity of borrowing for a growing economy, stressing the importance of balancing debt reduction with economic growth. "Setting a specific fiscal deficit target and achieving it with short-term solutions each year is one approach, but it's not ideal 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 opted for a healthy method to get the fiscal deficit closer to the target. It's not just about the target number, but also how you achieve it. Reducing debt is a common method for all countries, but borrowing is essential for a growing economy. The key is how much you borrow and where it's used", she said.