Andhra Pradesh, Bihar package likely to cost Rs 20-30K crore to Centre

The Centre’s financial package for Andhra Pradesh and Bihar may cost the exchequer around Rs 20,000-30,000 crore in 2024-25, according to government sources. While Andhra Pradesh is expected to receive Rs 15,000-20,000 crore, Bihar is likely to get Rs 5,000-10,000 crore in FY25.
A major chunk of the allocations has been made under the “Special Assistance under the demand – Transfers to States” head, which has been raised fivefold to Rs 20,000 crore in the full Budget for FY25 compared to Rs 4,000 crore allocated in the Interim Budget.