Bihar State Budget 2008-09 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2008-09
Bihar State Budget 2008-09 Budget at a Glance
Total Receipts
Rs 24,500 crore
+21.3%
Total Expenditure
Rs 34,300 crore
+27.0%
Fiscal Deficit
3.8%
Rs 5,200 crore
Capital Expenditure
Rs 5,800 crore
+38.1%
Tax Revenue
Rs 7,800 crore
+21.9%
Interest Payments
Rs 3,500 crore
10% of expenditure
Bihar Revenue Receipts 2008-09
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2008-09
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Bihar 2008-09
The fiscal deficit for Bihar in 2008-09 is 3.8% of GSDP (Rs 5,200 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 3,500 crore consume 10.2% of total expenditure.
Bihar State Budget 2008-09 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 35,800 crore | 100% |
| 1. Revenue Receipts | Rs 24,500 crore | 68.4% |
| a. Own Tax Revenue | Rs 7,800 crore | 21.8% |
| b. Non-Tax Revenue | Rs 2,000 crore | 5.6% |
| B. Total Expenditure | Rs 34,300 crore | 100% |
| 1. Revenue Expenditure | Rs 28,500 crore | 83.1% |
| 2. Capital Expenditure | Rs 5,800 crore | 16.9% |
| of which: Interest Payments | Rs 3,500 crore | 10.2% |
| C. Fiscal Deficit | Rs 5,200 crore | 3.8% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Budget 2008-09 Analysis & Highlights
Key Highlights
- Global financial crisis hits Bihar indirectly through reduced remittances from migrant workers in Gujarat, Maharashtra, and Punjab.
- Total expenditure rises to Rs 34,000 crore but growth rate declines to 13% from the previous year's 15%.
- Kosi flood rehabilitation dominates spending with Rs 3,500 crore for housing reconstruction and livelihood restoration.
- Bihar posts 10% GDP growth despite global crisis, demonstrating the resilience of its domestic demand-driven model.
- Own tax revenue growth moderates to 15% at Rs 4,600 crore as construction and retail activity slows.
- Fiscal stimulus spending of Rs 1,200 crore received from Centre for accelerated rural infrastructure.
- Education spending reaches Rs 6,500 crore as 1.5 lakh teachers appointed โ largest teacher recruitment in any state's history.
- Road construction maintained at Rs 7,000 crore with focus on Kosi flood-damaged bridges and highways.
- Backward Region Grant Fund provides Rs 2,500 crore for 36 of Bihar's 38 districts classified as backward.
- JEEViKA covers 20 districts with 8 lakh women in self-help groups, generating Rs 200 crore in savings.
- Power sector receives Rs 2,500 crore for 1,000 MW Barh thermal project and sub-station upgrades.
- Healthcare allocation reaches Rs 2,500 crore with construction of 250 new primary health centers.
- Revenue deficit turns positive for the first time โ Bihar achieves revenue surplus of 0.2% of GSDP.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 27,000 crore | Rs 34,300 crore |
| Revenue Receipts | โ | โ | โ | Rs 20,200 crore | Rs 24,500 crore |
| Capital Expenditure | โ | โ | โ | Rs 4,200 crore | Rs 5,800 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.1% | 3.8% |
| Own Tax Revenue | โ | โ | โ | Rs 6,400 crore | Rs 7,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2008-09
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