Bihar Government Unveils Ambitious Rs 3.47 Lakh Crore Budget for 2026-27 Fiscal Year
In a significant development at the Bihar Assembly, Finance Minister Bijendra Prasad Yadav presented the state's budgetary allocation of Rs 3.47 lakh crore for the 2026-27 fiscal year. The announcement was made amid a dramatic walkout by opposition members, primarily from the Rashtriya Janata Dal (RJD), who protested the government's handling of law and order issues.
Opposition Stages Walkout During Budget Reply
As Finance Minister Yadav began delivering the government's official response to the two-day House debate on the budget, RJD legislators led a coordinated walkout from the assembly. Senior RJD member Alok Mehta later explained to reporters that the protest was driven by what the opposition perceives as the government's failure to control rising crime rates.
"We walked out of the House during the government's reply because the government has failed to control the law and order situation," Mehta stated emphatically. "Not only has the crime graph been increasing, but sexual and murderous violence has also been rising alarmingly. The victims are not only women, but also adolescent girls, minor girls and children."
Budget Focuses on Economic Empowerment and Income Growth
Despite the opposition protest, Finance Minister Yadav outlined an ambitious vision for Bihar's economic future. He declared that the substantial budget allocation would serve as a catalyst for both social and economic empowerment across the state. The government has established a clear target to double people's income over the next five years through comprehensive development initiatives.
"The government is committed to achieve social and economic empowerment of people and double their income, besides creating employment and work opportunities for one crore youths in five years," Yadav affirmed during his address. He further emphasized that "the economy of Bihar has been steadily growing and would keep growing and expanding under the leadership of CM Nitish Kumar."
Specific Initiatives for Poverty Alleviation and Women's Empowerment
The finance minister detailed several concrete measures designed to translate budgetary allocations into tangible benefits for Bihar's citizens:
- Uplift of Poorest Families: The government has initiated a process to uplift 94 lakh of the state's poorest families. Each family will soon receive financial assistance of Rs 2 lakh to help them start their own economic activities and achieve self-sufficiency.
- Enhanced Support for Women: Under the Mahila Rojgar Yojana, 1.56 crore women have already received Rs 10,000 each. These women will now be eligible for additional financial support of up to Rs 2 lakh following a proper assessment of the economic activities they have undertaken in the six months since receiving the initial amount.
- Agricultural Boost: Recognizing Bihar's dominant position in makhana (85% of national production) and litchi (83% of national output), the government plans to increase production of these crops. "Attempts would be made to increase their production, since the returns to the farmers on their sale would help increase their income," Yadav explained.
- Industrial Development: The budget includes plans to establish industrial units in every district of Bihar and to reopen closed sugar mills, creating new employment opportunities across the state.
Supplementary Budget and Parliamentary Proceedings
On the same day, Finance Minister Yadav also presented the third supplementary budget for the 2025-26 financial year, amounting to Rs 12,185 crore. This supplementary allocation includes:
- Rs 9,586 crore dedicated to scheme implementation
- Rs 2,579 crore allocated to meet committed expenditures such as salary payments and other dues
Both the main 2026-27 budget and the supplementary budget are scheduled to be passed by the House on a predetermined date following the conclusion of legislative procedures.
Opposition Criticism and Government Response
Earlier during the House debate, RJD's Alok Mehta had criticized the budget as "old wine in a new bottle," suggesting it offered little that was genuinely new or transformative. This characterization prompted an immediate objection from Parliamentary Affairs Minister Vijay Kumar Chaudhary, who cited the state's prohibition law passed in April 2016 and the ban on liquor in Bihar as context for his objection to the metaphor.
The budget session thus revealed the deep political divisions in Bihar, with the government presenting an optimistic economic roadmap while the opposition focused on governance failures, particularly in maintaining law and order. The contrasting perspectives set the stage for continued political debate as Bihar moves toward implementing its substantial budgetary plans for economic transformation and social empowerment.
