Finance minister Nirmala Sitharaman on Friday rejected criticisms of only Bihar and Andhra Pradesh being given importance in the latest Union Budget presented by her on July 23.
In an interview with NDTV, the minister said that states are receiving allocations as in the past. The Andhra Pradesh Reorganisation Act, which asserts that no state has been deprived anything, mandates that the federal government assist the southern state in creating its capital city and improving underdeveloped areas.
The finance minister had declared a Rs 15,000 crore allocation for the construction of Amaravati, the capital of Andhra Pradesh, in the Union Budget 2024. She added that the Polavaram Irrigation Project will be expedited by the government.
“Several steps have been taken in the last 10 years (and) many other steps, as per the Act, which had to be done have been done. Yes, we will support (the building of the new capital, Amaravati, and the Polavaram irrigation project) ... Polavaram should have been completed but there are some technical issues. The state government is seized of the matter,” the minister told NDTV.
Sitharaman was asked if there would be a decrease in petrol costs during the interview. In response, the minister stated that rather than being subject to Value Added Tax, petrol and diesel might be subject to Goods and Services Tax (GST).
“If state governments agree to the proposal and fix a suitable rate,” the minister said. Sitharaman added,"If they fix the rate and all come together... and decide that GST will include petroleum products, then we can implement it immediately."
