Bihar Budget 2025–26: Consolidated Notes
Basic Facts
- Presented by: Finance Minister Samrat Chaudhary
- Date: 3 March 2025
- Total Budget Size: ₹3.17 lakh crore
- GSDP (2025–26): ₹10.97 lakh crore (22% growth, current prices)
Sector-wise Expenditure (as % of Total Expenditure, 2025–26)
| Sector | Bihar (2025–26) | States’ Average (2024–25) | Trend |
|---|
| Education | 21.7% | 15% | Much higher |
| Health | 6.6% | 6.2% | Slightly higher |
| Rural Development | 10.3% | 5.1% | Significantly higher |
| Roads & Bridges | 3% | 4.3% | Lower |
| Agriculture | 2.7% | 6.3% | Much lower |
| Irrigation | 3.2% | 3.4% | Slightly lower |
Inference: Bihar prioritises education, health, and rural development, but under-invests in agriculture and roads compared to other states.
Key Expenditure Trends (2025–26 BE)
- Total Expenditure (excluding debt repayment): ₹2,94,075 crore
- Revenue Expenditure: ₹2.52 lakh crore (↓10% from RE 2024–25)
- Capital Outlay: ₹40,532 crore (↓7%)
- Committed Expenditure:₹1,08,094 crore (42% of revenue receipts)
- Salaries: 20%
- Pension: 13%
- Interest payments: 9%
Implication: High committed expenditure limits fiscal flexibility.
Major Sector Allocations (2025–26 BE)
- Education:₹63,335 crore
- School salaries & allowances: ₹13,421 crore
- Universities: ₹5,584 crore
- Rural Development:₹30,150 crore
- MGNREGS: ₹4,392 crore
- PM Awas Yojana (Rural): ₹4,320 crore
- Health & Family Welfare: ₹19,184 crore
- Police: ₹14,653 crore
- Irrigation & Flood Control: ₹9,238 crore (↑36%)
- Energy: ₹13,401 crore
- Agriculture & Allied: ₹8,039 crore
Receipts Structure (2025–26)
- Total Revenue Receipts:₹2,60,831 crore (↑7%)
- Centre’s share:74%
- Share in central taxes: ₹1,38,516 crore
- Grants-in-aid: ₹54,575 crore
- State’s own resources: 26%
Own Tax Revenue (₹59,520 crore, ↑10%)
- State GST: 57% share (₹34,009 crore)
- Sales Tax/VAT: ₹11,200 crore
- Stamp Duty & Registration: ₹8,250 crore
- Vehicle Tax: ₹4,070 crore
Concern: Own tax revenue remains low at 5.4% of GSDP.
Deficit & FRBM Position
| Indicator | 2024–25 RE | 2025–26 BE |
|---|
| Revenue Balance | -4.1% of GSDP | +0.8% (Surplus) |
| Fiscal Deficit | 9.2% of GSDP | 3% of GSDP |
| Outstanding Debt | 37.1% of GSDP | 37% of GSDP |
- Fiscal deficit brought back to FRBM limit (3%).
- Additional borrowing space of 0.5% of GSDP possible for power sector reforms.
State Public Sector Enterprises (SPSEs)
- Total SPSEs: 76
- Many SPSEs have pending accounts (up to 45 years).
- Loss-making SPSEs dominate; heavy budgetary support (₹51,583 crore).
- CAG flagged weak financial discipline and poor oversight.
Policy Highlights
- Women welfare: Mahila Haat, Pink Toilets, Pink Buses, hostels for working women
- Infrastructure: Greenfield airports at Sultanganj & Raxaul
- Agriculture: Cold storage facilities in blocks & subdivisions
- Urban & Transport: Expansion of urban health and housing facilities
Bihar Economy Snapshot
- GSDP growth (2023–24, constant prices): 9.2%
- Sectoral contribution:
- Services: 58%
- Agriculture: 24%
- Manufacturing: 18%
- Per Capita GSDP: ₹66,828 (2023–24)
Key Issues & Analysis (Exam Angle)
Positives
- Strong focus on education and social sectors
- Return to fiscal discipline after 2024–25 spike
- Improvement in capital spending on irrigation
Concerns
- Heavy dependence on central transfers
- Low spending on agriculture and roads
- High committed expenditure
- Weak governance of SPSEs
- Credibility issues in revised estimates