Tarun Karthick
Sri Vijaya Puram, 24 March 2025
Mr. Bishnu Pada Ray, Member of Parliament from Andaman & Nicobar Islands, met with Union Finance Minister Nirmala Sitharaman to discuss the financial challenges faced by the Union Territory. During the meeting, the MP highlighted the need for increased budgetary allocations, particularly for capital expenditure, citing the region’s geographical remoteness and developmental needs.
Expressing concern over the financial management in the UT, Ray pointed out that approximately Rs. 600 crore had been surrendered by the A&N Administration over the past five years. Additionally, Rs. 163 crore allocated for central schemes remains unutilized, while a special financial assistance package of Rs. 279 crore intended for rural road construction has not been effectively obtained and utilised.
The MP also criticised the misallocation of funds by the UT Administration, alleging that priority has been given to non-essential expenditures such as the beautification of LG Raj Niwas, officer residences, and the procurement of vehicles and luxury amenities such as Air Conditioners and modern furnitures. He argued that such expenditures should not come at the cost of critical public infrastructure projects.
Ray further raised concerns over the UT Administration’s approach to budget proposals, stating that elected representatives, including himself, were not consulted during the planning process. He noted that the budget focuses primarily on recurring expenditures such as salaries and liabilities, leaving limited provisions for infrastructure development. Due to this imbalance, key sectors like road, water, and electricity infrastructure, as well as local governance bodies such as Panchayati Raj Institutions (PRIs) and the Municipal Council, continue to be underfunded.
Citing the impact of these budgetary shortfalls, Ray revealed that only 36 km of rural roads had been constructed in the past five years due to inadequate financial support to the PRIs. He emphasized that such deficiencies hamper the overall development of the region and affect the quality of life of its residents.
In light of these concerns, the MP urged the Finance Minister to intervene and ensure adequate budgetary provisions for capital expenditure in the upcoming 2025-26 financial year. He stressed that a well-structured financial package would help bridge developmental gaps, enhance infrastructure, and improve the socio-economic conditions of the people in the strategically important yet underdeveloped Union Territory.
Responding to the concerns, Finance Minister Sitharaman assured Ray that the matter would be examined for further consideration.