Bihar State Budget 2017-18 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2017-18
Bihar State Budget 2017-18 Budget at a Glance
Total Receipts
Rs 87,200 crore
+11.1%
Total Expenditure
Rs 1.1 lakh crore
+11.0%
Fiscal Deficit
3.3%
Rs 14,200 crore
Capital Expenditure
Rs 21,200 crore
+14.6%
Tax Revenue
Rs 25,100 crore
+10.1%
Interest Payments
Rs 7,900 crore
7% of expenditure
Bihar Revenue Receipts 2017-18
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2017-18
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Bihar 2017-18
The fiscal deficit for Bihar in 2017-18 is 3.3% of GSDP (Rs 14,200 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 7,900 crore consume 7.2% of total expenditure.
Bihar State Budget 2017-18 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.17 lakh crore | 100% |
| 1. Revenue Receipts | Rs 87,200 crore | 74.8% |
| a. Own Tax Revenue | Rs 25,100 crore | 21.5% |
| b. Non-Tax Revenue | Rs 3,900 crore | 3.3% |
| B. Total Expenditure | Rs 1.1 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 88,400 crore | 80.7% |
| 2. Capital Expenditure | Rs 21,200 crore | 19.3% |
| of which: Interest Payments | Rs 7,900 crore | 7.2% |
| C. Fiscal Deficit | Rs 14,200 crore | 3.3% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Budget 2017-18 Analysis & Highlights
Key Highlights
- Total expenditure rises to Rs 1,54,000 crore with Bihar's GDP growth maintaining double digits at 10.8%.
- GST rollout creates transitional disruption but Bihar gains from consumption-based tax formula versus production-based predecessor.
- Road construction allocation at Rs 18,000 crore targets 60,000 km total new roads milestone.
- Prohibition enforcement tightened with Rs 500 crore additional spending on police and judicial infrastructure.
- Nitish Kumar's political alignment shifts from Grand Alliance to NDA, changing the Centre-state fiscal dynamic.
- Agriculture receives Rs 12,000 crore with emphasis on flood-resistant paddy varieties and fisheries expansion.
- Saat Nischay Part 2 launched โ 7 new commitments including piped drinking water and pucca roads to all villages.
- JEEViKA generates Rs 1,200 crore annual lending through 9 lakh self-help groups spanning 1 crore women.
- Higher education reform allocates Rs 2,500 crore for 15 new engineering and medical colleges.
- Patna Metro Rail project receives Rs 800 crore initial allocation for detailed project planning.
- Power availability improves with deficit narrowing to 28% as interstate purchase agreements augment supply.
- Flood management receives Rs 2,000 crore for embankment strengthening along Kosi, Gandak, and Mahananda rivers.
- Per capita income reaches Rs 38,000, still the lowest among large states but growing at 12% annually.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2013-14 | 2014-15 | 2015-16 | 2016-17 | 2017-18 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 98,700 crore | Rs 1.1 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 78,500 crore | Rs 87,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 18,500 crore | Rs 21,200 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.3% | 3.3% |
| Own Tax Revenue | โ | โ | โ | Rs 22,800 crore | Rs 25,100 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2017-18
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