Bihar presents biggest-ever budget of Rs 3.47 lakh crore, growth seen at 14.9%

Bihar Finance Minister Bijendra Prasad Yadav presented the budget for the financial year 2026-27 in the Bihar Assembly on Tuesday. This year, the state budget exceeded Rs 3.47 lakh crore, more than Rs 30,000 crore higher than that of the last year. For the financial year 2026-27, Bihar’s growth rate is estimated at 14.9%.

This budget is aimed at fulfilling the resolve of ‘Viksit Bihar’ (Developed Bihar). Based on the principle of ‘development with justice’, the budget takes care of all sectors and all sections of society, including farmers, entrepreneurs, youth, and women. It is a comprehensive, inclusive, and growth-oriented budget.

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The minister said this is Bihar’s biggest budget so far, which is focused on ensuring “Respect for All — Ease of Life”, a major initiative of the Bihar government under the ‘Saat Nischay 3’ (Seven Resolves 3) programme focused on making civic services simpler, more accessible, and dignified for citizens.

“For 2026-27, Bihar’s total budget stands at Rs3,47,589.76 crore, which is significantly larger compared to recent years. The objective of the budget is to make Bihar economically strong and developed in every sector. With support from the Central government, many development projects in the state have gained momentum,” he said.

He pointed out that the state’s budget has increased from Rs 23,885 crore in 2004-05 to Rs3.47 lakh crore now, reflecting the state’s growing economic capacity. Of the total expenditure, 35.14% is revenue expenditure and 64.86% is capital expenditure, indicating a strong focus on infrastructure. An amount of Rs22,664.83 crore has been allocated for repayment of old loans.

Total tax revenue is estimated at Rs2,85,277.12 crore. The state is expected to earn around Rs 65,800 crore from its own taxes, with GST being the largest contributor. The fiscal deficit in the budget is Rs39,111.80 crore (approximately 2.99%), which is within the prescribed limit.

In a post on X, Chief Minister Nitish Kumar said, “This budget will prove highly helpful in implementing the programmes under ‘Saat Nischay 3’ (Seven Resolves 3) launched by our government. We have set a target of providing jobs and employment to one crore youth over the next five years. By ensuring proper management of the state’s financial resources, the process of providing jobs and employment to youth has already begun.”

This budget is aimed at fulfilling the objectives of providing opportunities to every family, skill development for every youth, and empowerment of women. A provision has been made to provide assistance of Rs2 lakh to one woman in every household for self-employment.

A scheme has also been proposed to turn 94 lakh poor families from Scheduled Castes into micro-entrepreneurs. The government has set a target to attract Rs50,000 crore in private investments to increase income in sectors such as agriculture, dairy, and animal husbandry.

There is an emphasis on opening degree colleges and engineering colleges in every block, to upgrade district hospitals to super-specialty level, and to provide healthcare services at home for senior citizens, along with services related to birth and death registration.