Bihar budget stresses delivery on promises, targets ‘Viksit Bihar’ with Rs3.47L crore outlay

Patna: Underlining its emphasis on delivering the promises made before the 2025 assembly elections, the Nitish Kumar-led NDA govt on Tuesday presented a Rs 3.47 lakh crore budget for FY 2026-27, projecting rapid economic progress and reiterating its resolve to take Bihar into the category of developed states. The budget, the first after the NDA’s return to power with a decisive mandate, pegged the estimated growth rate for the current fiscal at an impressive 14.9% and aligned major allocations with the commitments outlined in the ruling alliance’s manifesto.

Presenting the budget in the assembly, finance minister Bijendra Prasad Yadav said the size of the budget for the financial year 2026-27 was Rs 3,47,589 crore, an increase of Rs 30,694 crore over Rs 3,16,895 crore in FY 2025-26. “The fiscal deficit is likely to be around Rs 39,400 crore, which is 2.99% of the state's GDP,” he said.




As this is the first budget of the new govt after the 2025 election, in which the NDA secured a decisive majority by winning 202 seats in the 243-member assembly, the finance minister sought to make financial provisions for all major announcements made by the five-party ruling alliance in its joint manifesto (Sankalp Patra) for the Bihar elections, released on Oct 31 last year.

Most of the key schemes promised in the manifesto are now covered under the new govt’s ‘Saat Nischay-3’ programmes. Tabling the budget, Yadav said, “After achieving remarkable achievements in many sectors under the ‘Saat Nischay-1’ and ‘Saat Nischay-2’ programmes, the state govt with the seven resolves under the ‘Saat Nischay-3’ programmes, has set a target of bringing Bihar into the category of the most developed states. Special provisions are made in the budget to double the per capita income of people and provide govt jobs and employment to 1 crore youth over the next five years. Provisions are also made to provide financial assistance up to Rs 2 lakh to women under the Mukhyamantri Mahila Rozgar Yojana.”

Under the ‘Saat Nischay-3’ programmes, a total provision of Rs 14,800 crore has been made across various departments for FY 2026-27, according to the budget papers.

In line with another key poll promise, the govt also announced the introduction of the Karpoori Thakur Kisan Samman Nidhi, under which farmers will receive additional assistance of Rs 3,000 annually on the pattern of the Pradhan Mantri Kisan Samman Nidhi.

Beginning his budget speech, Yadav profusely thanked PM Narendra Modi for the Centre’s support to Bihar and praised chief minister Nitish Kumar’s leadership. “On behalf of this House, I would like to thank PM Modi, under whose leadership the nation has been progressing at a steady pace. Bihar received many things in last year's Union budget, which included new airports, a makhana board and other food processing units. The state was among the fastest developing ones, with its growth rate for 2024-25 expected to be around 14.9%,” he said.

Turning to the CM, the finance minister lauded him for embodying “five virtues (paanch tattwa) of ‘imaan, gyaan, vigyaan, armaan and samman’ (integrity, knowledge, a scientific temper, aspiration and self-respect)”, which he said had scripted Bihar’s journey towards becoming a “Viksit Bihar” through inclusive progress and “development with justice”.

According to the budget documents, the Establishment and Commitment Expenditure for 2026-27 is estimated at Rs 2,25,434 crore, an increase of Rs 25,298 crore over Rs 2,00,135 crore in the 2025-26 budget estimate. The annual scheme outlay for the financial year 2026-27 has been estimated at Rs 1,22,155 crore.

The development and non-development expenditure for 2026-27 has been pegged at Rs 2,31,267 crore and Rs 1,16,322 crore, respectively, taking the total expenditure to Rs 3,47,589 crore. Development expenditure accounts for 66.53% of the total while non-development expenditure stands at 33.47%.

The state is expected to post a revenue surplus of Rs 1,143 crore during 2026-27, which is 0.09% of the gross state domestic product (GSDP). The GSDP estimate for the year is Rs 13,09,155 crore.

The outstanding public debt is estimated at Rs 3,88,554 crore in 2026-27, which is 29.68% of the GSDP. Total debt, including liabilities in the public account, is estimated at Rs 4,46,326 crore, amounting to 34.09% of the GSDP.

Welcoming the budget, CM Nitish Kumar said, “This budget will fulfil the resolution of a ‘Viksit Bihar.’ Based on the principle of ‘development with justice’, this budget takes care of all sectors and all sections of society, including farmers, entrepreneurs, youth and women. This is a comprehensive, inclusive and development-promoting budget.”

In a long post on X, the CM said, “This budget will prove quite helpful in completing the programmes of ‘Saat Nischay-3’ being implemented by our govt. We have set a target of providing jobs and employment to 1 crore youth in the next five years. The work of providing jobs and employment to youth has started with proper management of financial resources in the state.”

“Provision is also made to provide assistance of Rs 2 lakh to one woman from every household for employment under the Mukhyamantri Mahila Rozgar Yojana. Industries are being promoted in the state. This budget will fulfil the objectives of providing opportunities to every family, skill development of every youth and empowerment of women. Special provisions are also made in this budget to further advance the development achieved through our efforts in education, health and agriculture. Bihar Budget 2026-27 will play an extremely important role in accelerating the pace of development of the state's economy,” he said.

“With proper management of the state govt's own fiscal resources, Bihar's development will be able to proceed at a rapid pace. The Union govt is also providing full support to Bihar's development. In the next few years, Bihar will be able to join the category of the most developed states of the country,” the CM added.