Bihar government will present the budget for the financial year 2026-27 on February 3. This is the first budget of the new Nitish government. In this, there will be arrangements to give Rs 2 lakh each to women and increase the income of farmers.
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This budget will be about generating employment opportunities. The government will focus on setting up industries, improving roads and education. Focus will be on making the lives of common people easier.
Know how the budget will be in Monday special? How will the arrangements for providing jobs be made? Where will the industry be located? What will happen in Nitish’s budget?
The budget will be around Rs 3 lakh 70 thousand crores
Bihar government is stuck in a huge economic crisis after the election announcements. This may impact the budget 2026-27. This time the budget is likely to increase less than last year. However, the state government will try to continue last year’s 13% growth this time.
According to Finance Department sources, the budget may be around Rs 3.70 lakh crore. There may be an increase of more than Rs 50 thousand crore compared to last year. This is less than the increase in the previous budget (Rs 57 thousand crore). This can be called the effect of the end of the election year.
Finance Minister Bijendra Yadav can make these 5 big announcements
1. Focus on increasing the income of common people through employment
Bihar government will focus on doubling the per capita income in the budget of 2026-27. There may be many new announcements for this.
There is a promise of providing jobs/employment to one crore youth. Many new provisions will be made for this. Industrial areas are being established in every district. Rs 2000 crore can be announced for this.
Why can the announcement be made?
Nitish government has to fulfill the promise of providing jobs/employment to 1 crore youth in the next 5 years. About 20 lakh jobs/employment are to be provided in the first year.
The people of Bihar are the poorest in the country. Per capita annual income is the lowest in the country at Rs 69,321. Migration is a big problem. To ensure that the people of Bihar get work in their state, it is necessary to expand the industry.
Benefit: If the government focuses on providing jobs/employment to the youth, then unemployment will reduce and migration will reduce. There will be economic progress due to establishment of new industries. People’s income will increase.
2. There will be emphasis on increasing roads and connectivity
Emphasis will be laid on increasing roads and connectivity in the budget. Funds may be allotted to build 5 new expressways in Bihar. The amount coming from the Bihar government will be arranged.
About Rs 9000 crore will be spent on building good roads in the villages and Rs 5500 crore will be spent on highways, bridges etc. Government will provide funds to develop 5 new townships. There are preparations to build modern inter-state bus terminals in every city.
Why can the announcement be made?
Good roads are needed for the development of the state. Now the focus is on widening of roads in rural areas. The single road will be doubled.
It is the aim of the government that it should take less than 5 hours to reach Patna even from remote areas. For this, highways and expressways are being built. For industries to set up in Bihar, it is necessary to develop infrastructure like roads, bridges, culverts.
Benefit: The condition of roads in Bihar has changed in the last 20 years. The time taken to reach Patna from distant districts like Katihar, Purnia has almost halved. It has helped in taking the farmers’ produce to the market. It has become easy to send products from Bihar to other states.
3. Emphasis on setting up new industries, progress in agriculture sector
There will be allocation of funds in the budget for private investment, tech hub and industrial expansion. Arrangements of Rs 2000 crore will be made for setting up industries, Rs 2500 crore for the energy sector and about Rs 3200 crore for the agriculture sector. There will be provisions in the budget for makhana, dairy and water for every farm. There are preparations to double the income of farmers.
Why can the announcement be made?
The government’s focus is on industry for the development of the state and creating employment opportunities. An agreement has been reached between the Industry Department and investors for investment of Rs 2.50 lakh crore in two years.
The state government approved the new ‘Bihar Global Capability Center (GCC) Policy-2026’ to attract IT, banking and large multinational companies (MNCs).
Benefit: Subsidy up to Rs 50 crore will be given to companies setting up Global Capability Centers (GCC) in the state. ‘Employment Promotion Subsidy’ will also be available for providing employment to local youth.
4. Education budget will be Rs 70 thousand crores.
In this time’s budget, Rs 70 thousand crores may be allotted to the education department. This will be Rs 10 thousand crore more than in 2025-26. The higher education budget is also expected to double.
In the last financial year, the budget of the Education Department was Rs 60964 crore. The budget for higher education was approximately Rs 5 thousand crores. Rs 26000 crore will be kept for the development of schools and colleges.
Why can the announcement be made?
Teachers will get their salaries on time. After the new appointment, it will be easier to pay salaries to teachers. There are approximately 6 lakh teachers appointed in Bihar. 27 thousand teachers will be appointed under TRE-4.
The budget of the Education Department in 2025-26 was Rs 60964 crore. Expenditure was Rs 72652.44 crore (excess of Rs 11688 crore).
Benefit: New buildings will be constructed in schools. There are 10 thousand such schools which do not have buildings as per class. There is a shortage of desk-benches. The shortcomings will be removed after getting funds. There will be good arrangements for education.
5. Women will get Rs 2 lakh each
Under Saat Nishchay-3, the process of providing assistance of up to Rs 2 lakh each for self-employment to 94 lakh women of poor families will be expedited. Women will also get the second installment of Chief Minister Mahila Rozgar Yojana.
There will be provision of funds for this in the budget. Rural Development Department will get Rs 17000 crore.
Why can the announcement be made?
Women have to pay Rs 2 lakh. The condition is that the money given earlier should have been used for employment. In the first phase, 1.56 crore women were given Rs 10,000. Out of these, women starting business will get Rs 2 lakh.
Benefit: The government is providing financial assistance to women for self-employment so that there becomes a woman entrepreneur in every family.
Where is Bihar government raising money from, understand in 2 points
1- Tax is the strongest way of earning.
Taxes (GST and VAT) are the biggest sources of income for the Bihar government. Getting the benefit of being a consuming state. In the current financial year (2025-26), Bihar government expects a total income of Rs 2.60 lakh crore.
Of the total revenue receipts, Rs 1.40 lakh crore is going to be received from the share of central tax. It is estimated that Rs 59 thousand crore will be received from the tax imposed by the state government.
Revenue receipt in the year 2024-25 was Rs 2.44 lakh crore. The income of Bihar government has increased. The income was Rs 1.93 lakh crore in the financial year 2023-24.
2- Government going to take loan from central government
The loan burden on Bihar government is increasing year after year. Government expenditure has increased due to populist promises made during elections. Bihar government has demanded more loans from the Centre.
Bihar’s total debt by the end of 2024-25 was Rs 3.48 lakh crore. This is 38.9 percent of the state’s gross domestic product (GDP). In simple words, there is a debt of Rs 40 for every Rs 100 produced in Bihar.
Bihar government took a loan of Rs 12 thousand 920 crore from the Center in 2024-25. Along with this, internal loan of Rs 50 thousand 746 crore was taken.