Bihar State Budget 2005-06 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2005-06
Bihar State Budget 2005-06 Budget at a Glance
Total Receipts
Rs 14,200 crore
(excl. borrowings)
Total Expenditure
Rs 19,300 crore
Fiscal Deficit
3.9%
Rs 3,200 crore
Capital Expenditure
Rs 2,800 crore
Tax Revenue
Rs 4,300 crore
Net to Centre
Interest Payments
Rs 2,400 crore
12% of expenditure
Bihar Revenue Receipts 2005-06
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2005-06
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Bihar 2005-06
The fiscal deficit for Bihar in 2005-06 is 3.9% of GSDP (Rs 3,200 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Bihar's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 2,400 crore consume 12.4% of total expenditure.
Bihar State Budget 2005-06 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 19,500 crore | 100% |
| 1. Revenue Receipts | Rs 14,200 crore | 72.8% |
| a. Own Tax Revenue | Rs 4,300 crore | 22.1% |
| b. Non-Tax Revenue | Rs 1,200 crore | 6.2% |
| B. Total Expenditure | Rs 19,300 crore | 100% |
| 1. Revenue Expenditure | Rs 16,500 crore | 85.5% |
| 2. Capital Expenditure | Rs 2,800 crore | 14.5% |
| of which: Interest Payments | Rs 2,400 crore | 12.4% |
| C. Fiscal Deficit | Rs 3,200 crore | 3.9% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Budget 2005-06 Analysis & Highlights
Key Highlights
- Bihar's 2005-06 budget marks the first full year of Nitish Kumar's governance revolution, with total expenditure at Rs 22,000 crore.
- Road construction receives Rs 3,200 crore as the state launches its transformation from India's worst road network.
- Law and order allocation rises 35% to Rs 2,800 crore as the new government tackles Bihar's endemic crime and kidnapping culture.
- Central plan assistance of Rs 8,500 crore constitutes 39% of revenue receipts, reflecting Bihar's heavy dependence on transfers.
- Primary education receives Rs 4,200 crore with emphasis on school construction โ 50,000 new classrooms targeted.
- Own tax revenue at Rs 3,800 crore is among the lowest for large states, reflecting the collapsed formal economy.
- Bihar Rural Livelihoods Project (Jeevika) receives Rs 200 crore seed funding for women's self-help group formation.
- State's per capita income at Rs 7,914 is less than one-third of the national average, underscoring the development challenge.
- Power sector allocation of Rs 1,500 crore targets rural electrification with only 16% of rural households having connections.
- Prohibition of country liquor tightened with Rs 150 crore for enforcement, though full prohibition comes later.
- NREGA implementation in 23 of 38 districts provides Rs 900 crore in wage employment for landless laborers.
- Health spending at Rs 1,200 crore addresses the state's dismal doctor-to-population ratio of 1:28,000.
- Revenue deficit at 1.2% of GSDP is moderate given the state's developmental backwardness.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | โ | Rs 19,300 crore |
| Revenue Receipts | โ | โ | โ | โ | Rs 14,200 crore |
| Capital Expenditure | โ | โ | โ | โ | Rs 2,800 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | โ | 3.9% |
| Own Tax Revenue | โ | โ | โ | โ | Rs 4,300 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2005-06
The Bihar state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Bihar Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
Explore More
Compare Bihar with other states
Side-by-side comparison of fiscal metrics across Indian states