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  • Bihar Budget Analysis 2025-26

Bihar Budget Analysis 2025-26

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The Finance Minister of Bihar, Mr Samrat Chaudhary, presented the Budget for the state for the financial year 2025-26 on March 3, 2025.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Bihar for 2025-26 (at current prices) is projected to be Rs 10.97 lakh crore, amounting to growth of 22% over 2024-25.

  • Expenditure (excluding debt repayment) in 2025-26 is estimated to be Rs 2,94,075 crore, a decrease of 10% from the revised estimates of 2024-25.  In addition, debt of Rs 22,820 crore will be repaid by the state.

  • Receipts (excluding borrowings) for 2025-26 are estimated to be Rs 2,61,357 crore, an increase of 7% as compared to the revised estimate of 2024-25.  

  • Revenue surplus in 2025-26 is estimated to be 0.8% of GSDP (Rs 8,831 crore), as compared to a revenue deficit of 4.1% of GSDP (Rs 36,788 crore) at the revised estimate stage in 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 3% of GSDP (Rs 32,718 crore).   In 2024-25, as per the revised estimates, fiscal deficit is expected to be 9.2% of GSDP, higher than the budgeted 3% of GSDP.

Policy Highlights

  • Women welfare: Establishment of a mahila haat (women's marketplace) in Patna, the implementation of pink toilets across all districts, and the introduction of pink buses in major urban areas, staffed by female drivers and conductors has been announced.

  • Infrastructure: The construction of greenfield airports in Sultanganj (Bhagalpur district) and Raxaul (East Champaran district) has been announced.

  • Establishment of cold storage facilities: Cold storage facilities will be established in all sub-divisions and blocks of the state in a phased manner

Bihar’s Economy

  • GSDP:  In 2023-24, Bihar’s GSDP (at constant prices) is estimated to grow by 9.2% over the previous year.  In comparison, India’s GDP is estimated to grow by 9.2% in 2023-24.

  • Sectors: In 2023-24, services sector is estimated to grow by 10.8% (at constant prices), followed by manufacturing (8.2%), and agriculture (5.7%).  In 2023-24, agriculture, manufacturing, and services are estimated to contribute 24%, 18%, and 58% to the economy, respectively (at current prices).

  • Per capita GSDP: In 2023-24, Bihar’s per capita GSDP (at current prices) is estimated to be Rs 66,828, an increase of 13% over 2022-23.  India’s per capita GDP in 2023-24 is estimated to be Rs 2,15,935, an increase of 11% over the previous year.

Figure 1: Growth in Bihar’s GSDP at constant prices (2011-12) 
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Note: These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.
Sources: MoSPI; PRS.

Budget Estimates for 2025-26

  • Total expenditure (excluding debt repayment) in 2025-26 is targeted at Rs 2,94,075 crore.  This is a decrease of 10% from the revised estimate of 2024-25.   This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 2,61,357 crore and net borrowings of Rs 32,918 crore.  Total receipts for 2025-26 (other than borrowings) are expected to register an increase of 7% over the revised estimate of 2024-25. 

  • The state estimates a revenue surplus of 0.8% of GSDP (Rs 8,831 crore) in 2025-26, as compared to a revenue deficit of 4.1% of GSDP at the revised estimate stage of 2024-25.  

  • Fiscal deficit for 2025-26 is targeted at 3% of GSDP (Rs 32,718 crore), lower than the revised estimates for 2024-25 (9.2% of GSDP).

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