Finance Minister Nirmala Sitharaman announced on Tuesday that Andhra Pradesh will receive ₹15,000 crore to develop its capital, marking her seventh consecutive budget presentation. Chief Minister Chandrababu Naidu, a key ally of the BJP, leads Andhra Pradesh and the BJP depends on NDA allies to reach the majority mark this time.

The announcement fulfills a key demand of the state government, which, during the pre-budget meeting, had requested a grant of ₹15,000 crore for the construction and development of Amaravati as the sole capital of Andhra.

Presenting the budget, Ms Sitharaman stated that the Centre acknowledges Andhra Pradesh’s requirement for capital and will facilitate support through multi-lateral development agencies.

“The government will allocate ₹15,000 crore this fiscal year and in the future for the development of the capital city of this state,” she announced.

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In 2014, after the bifurcation into the states of Andhra Pradesh and Telangana, Hyderabad was designated as the common capital for both states for 10 years under the Andhra Pradesh Reorganisation Act, 2014. On June 2 this year, the city ceased to serve as the capital of Andhra.

Naidu Defends Amaravati Decision

On June 11, Mr Naidu announced before taking oath as chief minister that Amaravati would remain the sole capital of the state, rejecting the previous YSRCP government’s proposal for three capitals under Jagan Mohan Reddy. The proposed cities were Visakhapatnam as the executive capital, Amaravati as the legislative capital, and Kurnool as the judicial capital.

Mr Naidu stated that Visakhapatnam would be developed as the state’s financial capital.

Last week, the Andhra Pradesh chief minister, leading an NDA government in the state, met with Home Minister Amit Shah and advocated for a “substantial fund allocation” in the Union Budget to tackle the state’s financial challenges.