Bihar State Budget 2006-07 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2006-07
Bihar State Budget 2006-07 Budget at a Glance
Total Receipts
Rs 16,800 crore
+18.3%
Total Expenditure
Rs 22,400 crore
+16.1%
Fiscal Deficit
3.2%
Rs 3,100 crore
Capital Expenditure
Rs 3,500 crore
+25.0%
Tax Revenue
Rs 5,200 crore
+20.9%
Interest Payments
Rs 2,600 crore
12% of expenditure
Bihar Revenue Receipts 2006-07
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2006-07
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Bihar 2006-07
The fiscal deficit for Bihar in 2006-07 is 3.2% of GSDP (Rs 3,100 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 2,600 crore consume 11.6% of total expenditure.
Bihar State Budget 2006-07 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 23,200 crore | 100% |
| 1. Revenue Receipts | Rs 16,800 crore | 72.4% |
| a. Own Tax Revenue | Rs 5,200 crore | 22.4% |
| b. Non-Tax Revenue | Rs 1,400 crore | 6.0% |
| B. Total Expenditure | Rs 22,400 crore | 100% |
| 1. Revenue Expenditure | Rs 18,900 crore | 84.4% |
| 2. Capital Expenditure | Rs 3,500 crore | 15.6% |
| of which: Interest Payments | Rs 2,600 crore | 11.6% |
| C. Fiscal Deficit | Rs 3,100 crore | 3.2% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Budget 2006-07 Analysis & Highlights
Key Highlights
- Total expenditure rises 18% to Rs 26,000 crore as Nitish government scales up infrastructure spending in its second year.
- Road construction allocation doubles to Rs 5,500 crore with 4,000 km of new paved roads completed in the first full year.
- Bihar records 16% GDP growth rate โ the highest among all Indian states โ driven by base effect and governance improvement.
- NREGA fully operational in all 38 districts, generating 15 crore person-days of employment at Rs 2,200 crore.
- School enrollment rises 22% as Cycle Yojana provides bicycles to 8 lakh girl students, allocating Rs 200 crore.
- Commercial tax collections surge 28% to Rs 3,100 crore as highway checkpost computerization curbs evasion.
- Devastating Kosi river floods displace 33 lakh people; emergency spending of Rs 800 crore for rescue and relief.
- Special Category Status demand formalized with state assembly resolution, seeking Rs 7,000 crore additional annual transfers.
- Bridge construction program targets 100 new bridges across Bihar's flood-prone river systems at Rs 1,800 crore.
- JEEViKA program expands to 10 districts with Rs 400 crore as 2 lakh women join self-help groups.
- Power sector reforms begin with BSEB restructuring and Rs 2,000 crore for transmission line upgrades.
- Healthcare allocation rises to Rs 1,600 crore with 500 additional doctors recruited on contract.
- Per capita plan expenditure at Rs 1,200 remains less than half the national average.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 19,300 crore | Rs 22,400 crore |
| Revenue Receipts | โ | โ | โ | Rs 14,200 crore | Rs 16,800 crore |
| Capital Expenditure | โ | โ | โ | Rs 2,800 crore | Rs 3,500 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.9% | 3.2% |
| Own Tax Revenue | โ | โ | โ | Rs 4,300 crore | Rs 5,200 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2006-07
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.
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Compare Bihar with other states
Side-by-side comparison of fiscal metrics across Indian states