Patna: State Finance Minister Bijendra Prasad Yadav announced on Monday that Bihar has achieved a remarkable 13.1% growth in the 2024-25 financial year, significantly outperforming the national average of 9.8%. This declaration came as he presented the Bihar Economic Survey for FY 2025-26 in both Houses of the state legislature, marking the beginning of the budget session.
Sustained Economic Momentum
Yadav emphasized that Bihar is on a high-growth trajectory, driven by macroeconomic stability, sectoral diversification, increased investment, and a steadfast commitment to human capital development, employment generation, and infrastructure enhancement. He noted that over the past three years, Bihar's economic growth has consistently exceeded India's GDP growth at both current and constant prices.
Comparative Growth Figures
According to the Economic Survey report, Bihar's gross state domestic product (GSDP) growth rate reached 17.9% in FY 2022-23 and 14.9% in 2023-24, compared to India's 14% and 12%, respectively, at current prices. For FY 2024-25, quick estimates indicate Bihar's GSDP growth at 13.1% against India's 9.8% at current prices. At constant (2011-12) prices, Bihar's economy is estimated to have grown by 8.6% in 2024-25, surpassing India's 6.5%. These impressive figures position Bihar among the fastest-growing states in the country.
Rising Income Levels
The minister highlighted significant gains in income levels, with Bihar's per capita GSDP at current prices increasing from Rs 46,412 in FY 2020-21 to Rs 76,490 in 2024-25, demonstrating a consistent upward trend. At constant (2021-22) prices, the state's per capita GSDP rose from Rs 30,159 in 2020-21 to Rs 40,973 in 2024-25.
District-Level Performance
Within the state, Patna district recorded the highest per capita Gross District Domestic Product (GDDP), followed by Begusarai and Munger. The per capita GDDP at current prices was Rs 2,41,220 for Patna, Rs 1,05,600 for Begusarai, and Rs 93,921 for Munger.
Infrastructure and Development Indicators
On infrastructure-linked indicators, Yadav reported a sharp increase in per capita energy consumption, from 134 kWH in FY 2011-12 to 374 kWH in 2024-25. He stated that the state government has consistently prioritized outlays in education, health, energy, transport, irrigation, and agriculture, while maintaining fiscal prudence through moderate borrowing and effective debt servicing.
Shift in Spending Composition
The minister pointed to a significant shift in spending composition toward investment. The proportion of capital expenditure in the total outlay rose from 15.8% in 2020-21 to 22.3% in 2024-25, while the share of revenue expenditure declined from 84.2% to 77.7%. This structural change underscores the government's focus on long-term investment, infrastructure development, and asset creation.
Revenue Trends
On revenues, Yadav noted that the state government's revenue receipts increased from Rs 1.28 lakh crore in 2020-21 to Rs 2.18 lakh crore in 2024-25, with tax revenue emerging as the dominant source. The share of tax receipts in total revenue rose from 70% to 84%, while non-tax revenue declined from 5% to 2%, and grants-in-aid fell from 25% to 14% over the same period.
Expenditure Priorities
He also cited changes in expenditure priorities, with the share of scheme expenditure in total outlay increasing from 38.3% in 2020-21 to 39.9% in 2024-25, while establishment and committed expenditure declined slightly from 61.7% to 60.1%. Yadav remarked that this trend reflects a gradual shift towards welfare initiatives and policy-driven development priorities, reinforcing Bihar's commitment to inclusive and sustainable growth.
