CM Naidu Seeks Enhanced Financial Support from Finance Minister Ahead of Union Budget

Ahead of the Union Budget presentation, Andhra Pradesh Chief Minister N Chandrababu Naidu met with Union Finance Minister Nirmala Sitharaman on Friday, seeking enhanced financial support for the debt-ridden state.

During the meeting at North Block, Naidu emphasized various ongoing projects in Andhra Pradesh that require urgent central assistance. Sources reported that the Chief Minister presented a detailed memorandum outlining the state’s financial needs and the reasons behind the demand for increased allocation. TDP ministers in the Centre were also present during the meeting.

State government data indicates that Andhra Pradesh's public debt has increased from 31.02 percent of the Gross State Domestic Product (GSDP) in 2019-20 to 33.32 percent in the 2023-24 fiscal year, reflecting a deterioration in the state’s fiscal health over the past five years. Key among Naidu’s demands were funds for the Polavaram irrigation project, special assistance for backward regions, and support for developing the new capital, Amaravati.

The Chief Minister also sought to resolve pending issues stemming from the bifurcation of the erstwhile Andhra Pradesh. The meeting is significant as it comes just weeks before the presentation of the Union Budget 2024-25.

Sources indicated that Sitharaman listened patiently to Naidu’s concerns and assured her that she would consider Andhra Pradesh’s demands within the broader fiscal constraints. Naidu has been vocal about the state’s financial distress, seeking increased central support to overcome fiscal challenges. He also met with Prime Minister Narendra Modi and several Union Ministers on Thursday.