Saat Nischay-3 anchors budget with focus on inclusive growth

Patna: The Bihar govt tabled its annual budget on Tuesday, just two days after the presentation of the Union budget, outlining an ambitious financial and development roadmap for the state. With a total outlay of Rs 3.48 lakh crore, the budget places emphasis on human development, employment generation and inclusive growth.

Anchored to the principle of ‘justice with development’, Bihar’s transformation has been accelerated through Saat Nischay-1 and Saat Nischay-2. The launch of Saat Nischay-3 (2025-2030), an ambitious road map, has been laid by the govt to ‘double per-capita income’, generate 1 crore employment opportunities and institutionalise women-led growth. Financial assistance of Rs 10,000 has already been extended to 1.56 crore women, and enhanced support is proposed. Also, empowerment of 94 lakh poor families of every section of the society, large-scale private investment and infrastructure expansion are being prioritised in the budget to secure inclusive and sustainable development.


To achieve the above goals, the state govt has prioritised the development expenditure in its budget by allocating 67%. Out of the total outlay, Rs. 2.84 lakh crore is for revenue expenditure, which will also manage the burden of interest payments, salaries and pensions. Next, Rs. 63,455 crore is for capital expenditure, which will fulfil the infrastructural needs of the state. The state has allocated 35% of its budget (Rs.1.22 lakh crore) for its scheme expenditure and 65% (Rs 2.25 lakh crore) for the establishment and committed expenditure, mainly on social sector expenditure.

The revenue receipts for 2026-27 are estimated at Rs 2.85 lakh crore with the state’s own tax revenue at Rs 65,800 crore. The capital receipts also showed an increasing trend. Compared to the last year, the capital receipts increased by 11.04% from Rs 56,263 crore of 2025-26 to Rs 62,475 crore in 2026-27. The state’s per capita income at current prices has surged from Rs 31,142 in 2014-15 to Rs 76,490 in 2024-25, reflecting a sustained trajectory of economic growth. Meanwhile, the fiscal deficit for 2026-27 is estimated at Rs 39,111 crore, equivalent to 2.99% of the state’s gross state domestic product (GSDP), well within the FRBM limit.

The allocation of Rs 800 crore for model schools, Rs 900 crore to Bihar State Education Financial Corporation and Rs 1,026 crore to Grameen Jalapurti Yojana reflects the comprehensive picture of the govt. Along with this, there is a focused approach for increasing participation of women in the economy through schemes like Mukhyamantri Mahila Rojgar Yojana, Satat Jeevikoparjan, Jeevika, etc. Also, the state govt is focused on creating world class transportation system, reliable and surplus energy and other infrastructure, including rural-urban infra, etc. The state govt has budgeted Rs 92,104 crore on this account.

Overall, the budget of 2026-27 revolves around agricultural and industrial development, which will lead to job generation and an increase in income. Along with that, focusing on ease of living, the initiatives like minor irrigation, Grameen Jalapurti Yojana, civic facilities in urban areas and establishment of degree colleges in each district have also been given prominence.

(Authors Barna Ganguli and Bakshi Amit Kumar Sinha are faculties at Bihar Institute of Public Finance and Policy)