Bihar State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2007-08
Bihar State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 20,200 crore
+20.2%
Total Expenditure
Rs 27,000 crore
+20.5%
Fiscal Deficit
3.1%
Rs 3,500 crore
Capital Expenditure
Rs 4,200 crore
+20.0%
Tax Revenue
Rs 6,400 crore
+23.1%
Interest Payments
Rs 3,000 crore
11% of expenditure
Bihar Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Bihar 2007-08
The fiscal deficit for Bihar in 2007-08 is 3.1% of GSDP (Rs 3,500 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 3,000 crore consume 11.1% of total expenditure.
Bihar State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 28,000 crore | 100% |
| 1. Revenue Receipts | Rs 20,200 crore | 72.1% |
| a. Own Tax Revenue | Rs 6,400 crore | 22.9% |
| b. Non-Tax Revenue | Rs 1,700 crore | 6.1% |
| B. Total Expenditure | Rs 27,000 crore | 100% |
| 1. Revenue Expenditure | Rs 22,800 crore | 84.4% |
| 2. Capital Expenditure | Rs 4,200 crore | 15.6% |
| of which: Interest Payments | Rs 3,000 crore | 11.1% |
| C. Fiscal Deficit | Rs 3,500 crore | 3.1% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Budget 2007-08 Analysis & Highlights
Key Highlights
- Total expenditure crosses Rs 30,000 crore for the first time as Bihar's fiscal capacity expands with governance improvements.
- Road network expansion continues with Rs 6,800 crore and 12,000 km cumulative new paved roads since 2005.
- Bihar posts 12% GDP growth for the third consecutive year, attracting national attention as a turnaround story.
- Own tax revenue crosses Rs 4,000 crore for the first time, a 30% jump reflecting formal economy expansion.
- Farm loan waiver under central scheme covers 48 lakh Bihar farmer accounts with Rs 5,200 crore debt relief.
- Kosi river embankment breach in August 2008 causes catastrophic flooding, displacing 35 lakh people and requiring Rs 1,500 crore emergency spending.
- Education allocation rises to Rs 5,800 crore with 2 lakh new teacher appointments in pipeline.
- Bihar State Bridge Construction Corporation established with Rs 500 crore to professionalize bridge building.
- Healthcare spending reaches Rs 2,100 crore with National Rural Health Mission funds boosting primary care infrastructure.
- JEEViKA expands to 15 districts with 5 lakh women in self-help groups, accessing Rs 600 crore in micro-credit.
- Power deficit remains acute at 65% โ Bihar receives only 1,800 MW against 5,200 MW peak demand.
- Tourism development receives Rs 300 crore for Buddhist circuit โ Bodh Gaya, Nalanda, Rajgir, and Vaishali.
- Central plan assistance at Rs 10,000 crore reflects improved absorption capacity under Nitish administration.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 22,400 crore | Rs 27,000 crore |
| Revenue Receipts | โ | โ | โ | Rs 16,800 crore | Rs 20,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 3,500 crore | Rs 4,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.2% | 3.1% |
| Own Tax Revenue | โ | โ | โ | Rs 5,200 crore | Rs 6,400 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2007-08
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