Bihar's NDA Government Unveils Ambitious Rs 3.47 Lakh Crore Budget for FY 2026-27
In a significant move to deliver on its pre-election commitments, the Nitish Kumar-led NDA government in Bihar presented a massive Rs 3.47 lakh crore budget for the financial year 2026-27 on Tuesday. This budget, the first after the NDA's decisive return to power in the 2025 assembly elections, projects rapid economic progress and reiterates the government's resolve to elevate Bihar into the category of developed states.
Budget Highlights and Financial Projections
Presenting the budget in the assembly, Finance Minister Bijendra Prasad Yadav detailed the financial blueprint. The budget size for FY 2026-27 stands at Rs 3,47,589 crore, marking an increase of Rs 30,694 crore over the previous fiscal year's Rs 3,16,895 crore. The government has pegged the estimated growth rate for the current fiscal at an impressive 14.9%, signaling strong economic momentum.
Key financial indicators include:
- A fiscal deficit projected at around Rs 39,400 crore, which is 2.99% of the state's GDP.
- Establishment and Commitment Expenditure estimated at Rs 2,25,434 crore, up by Rs 25,298 crore from the previous year.
- Annual scheme outlay for FY 2026-27 set at Rs 1,22,155 crore.
- Development expenditure pegged at Rs 2,31,267 crore (66.53% of total) and non-development expenditure at Rs 1,16,322 crore (33.47%).
- Revenue surplus expected at Rs 1,143 crore, or 0.09% of the Gross State Domestic Product (GSDP), with GSDP estimated at Rs 13,09,155 crore.
Aligning with Election Manifesto and 'Saat Nischay-3' Programs
The budget aligns major allocations with the commitments outlined in the ruling alliance's joint manifesto (Sankalp Patra) for the Bihar elections, released on October 31 last year. Following the NDA's decisive majority win of 202 seats in the 243-member assembly, the finance minister has made financial provisions for all major announcements.
Most of the key schemes promised in the manifesto are now covered under the new government's 'Saat Nischay-3' programs. Yadav emphasized that after achieving remarkable successes under 'Saat Nischay-1' and 'Saat Nischay-2', the state government aims to bring Bihar into the category of the most developed states through these seven resolves.
A total provision of Rs 14,800 crore has been made across various departments for FY 2026-27 under the 'Saat Nischay-3' initiatives, according to budget papers.
Focus on Employment, Women Empowerment, and Farmer Welfare
The budget includes special provisions to double the per capita income of people and provide government jobs and employment to 1 crore youth over the next five years. Additionally, under the Mukhyamantri Mahila Rozgar Yojana, women will receive financial assistance of up to Rs 2 lakh for employment opportunities.
In line with another key poll promise, the government announced the introduction of the Karpoori Thakur Kisan Samman Nidhi. Under this scheme, farmers will receive additional assistance of Rs 3,000 annually, following the pattern of the Pradhan Mantri Kisan Samman Nidhi.
Leadership and Vision for a 'Viksit Bihar'
Beginning his budget speech, Yadav profusely thanked Prime Minister Narendra Modi for the Centre's support to Bihar, highlighting new airports, a makhana board, and other food processing units received in last year's Union budget. He praised Chief Minister Nitish Kumar's leadership, describing him as embodying five virtues—imaan, gyaan, vigyaan, armaan, and samman (integrity, knowledge, scientific temper, aspiration, and self-respect)—which have scripted Bihar's journey towards becoming a 'Viksit Bihar' through inclusive progress and 'development with justice'.
Welcoming the budget, CM Nitish Kumar stated, "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 detailed post on social media, the CM elaborated that the budget will prove instrumental in completing the 'Saat Nischay-3' programs, with targets to provide jobs and employment to 1 crore youth and empower women through financial assistance. He emphasized that industries are being promoted, and special provisions are made to advance development in education, health, and agriculture.
Kumar added, "With proper management of the state government's own fiscal resources, Bihar's development will be able to proceed at a rapid pace. The Union government 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."
Debt and Economic Outlook
According to budget documents, 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. Despite these figures, the government remains optimistic about achieving rapid economic growth and transforming Bihar into a developed state through strategic investments and inclusive policies.
