As India gears up for the Union Budget 2025, set to be announced on February 2, economists and policymakers are closely examining past allocations to understand the potential shifts in spending patterns. One of the key aspects of the budget discussed revolves around state-wise fund allocation, particularly in infrastructure, health, education, and rural development. A closer look at the year’s budget reveals significant variations in the amount allocated to different states, with some receiving substantial support while others were allocated minimal funding.
State-wise budget allocation in 2024
The Union Budget 2024 reflected a continued focus on infrastructure and development projects across states, with major challenges going to sectors such as railways, highways, and social welfare schemes. Among these, railway funding stood out as a critical area of investment, shaping connectivity and economic growth. The state-wise distribution of net proceeds of union taxes and duties as per the budget estimate for the financial year 2024-2025 sums to the total value of ₹12,19,782.85 crores. The state-wise allocations in the 2024 budget were as follows.
- Uttar Pradesh: ₹2,18,816.84 crore
- Maharashtra: ₹77,053.69 crore
- Madhya Pradesh: ₹95,752.96 crore
- West Bengal: ₹91,764.26 crore
- Odisha: ₹55,231.76 crore
- Bihar: ₹1,22, 685.76 crore
- Andhra Pradesh: ₹49,364.61 crore
- Gujarat: ₹42,424.05 crore
- Karnataka: ₹44,485.49 crore
- Jharkhand: ₹40,338.22 crore
- Chhattisgarh: ₹41,557.99 crore
- Tamil Nadu: ₹49,754.95 crore
- Telangana: ₹25,639.84 crore
- Punjab: ₹22,041.48 crore
- Uttarakhand: ₹13,637.15 crore
- Haryana: ₹13,331.23 crore
- Kerala: ₹23,480,81 crore
- Himachal Pradesh: ₹10,124.2 crore
- Assam: ₹38,154,81 crore
- Arunachal: ₹21,431.59 crore
- Nagaland: ₹8,733.65 crore
- Mizoram: ₹6,098.93 crore
- Tripura: ₹8,636.05 crore
- Meghalaya: ₹9,355.73 crore
- Sikkim: ₹4,732.76 crore
- Goa: ₹4,708.37 crore
Which state received the least allocation?
Based on last year's allocation data, the states of Himachal Pradesh, Punjab, Uttarakhand, and Haryana received the lowest funding among all states. Meanwhile, among the northeastern states, Sikkim, Arunachal Pradesh, Meghalaya, Tripura, and Nagaland received the lowest allocations.
Based on the last year’s railway allocation data, Delhi received the lowest funding among all states and Union Territories, with ₹2,582 core earmarked for railway infrastructure. This allocation sparked discussions among urban planners and policymakers, as Delhi served as the national capital and a crucial transportation hub.
Experts suggest that the lower allocation could be due to Delhi’s already extensive railway network, which might not require as much additional funding compared to states with ongoing large-scale infrastructure projects. However, this trend also raises concerns about maintaining and upgrading existing infrastructure to keep pace with rising urban demands.
Beyond railways, disparities in the border budget allocations
While railway allocations are one of the key indicators of development spending, state-wise budgetary support extends to various sectors such as healthcare, education, housing, and employment programs. Reports indicate that states with lower populations or fewer ongoing projects tend to receive smaller allocations. However, some analysts argue that even these states require more funds for modernization, technology adoption, and social welfare programs.
The upcoming budget is expected to strike a balance between economic growth and social welfare, addressing disparities while ensuring robust nationwide development. As the February 2 announcement nears, all eyes will be on how allocations shape India’s progress in 2025 and beyond.