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Bihar State Budget 2018-19 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2018-19

Bihar State Budget 2018-19 Budget at a Glance

Total Receipts

Rs 97,500 crore

+11.8%

Total Expenditure

Rs 1.24 lakh crore

+13.4%

Fiscal Deficit

3.4%

Rs 16,800 crore

Capital Expenditure

Rs 24,500 crore

+15.6%

Tax Revenue

Rs 28,200 crore

+12.4%

Interest Payments

Rs 9,600 crore

8% of expenditure

Bihar Revenue Receipts 2018-19

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 28,200 crore (86.8%)
Non-Tax Revenue
Rs 4,300 crore (13.2%)

Bihar Expenditure Breakdown 2018-19

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 80.3%
Capital Expenditure 19.7%

Fiscal Deficit as % of GSDP โ€” Bihar 2018-19

The fiscal deficit for Bihar in 2018-19 is 3.4% of GSDP (Rs 16,800 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 9,600 crore consume 7.7% of total expenditure.

Bihar State Budget 2018-19 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 1.31 lakh crore100%
1. Revenue ReceiptsRs 97,500 crore74.3%
a. Own Tax RevenueRs 28,200 crore21.5%
b. Non-Tax RevenueRs 4,300 crore3.3%
B. Total ExpenditureRs 1.24 lakh crore100%
1. Revenue ExpenditureRs 99,800 crore80.3%
2. Capital ExpenditureRs 24,500 crore19.7%
of which: Interest PaymentsRs 9,600 crore7.7%
C. Fiscal DeficitRs 16,800 crore3.4% of GSDP

Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.

Bihar Budget 2018-19 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 1,78,000 crore with Bihar maintaining 11% GDP growth, the fastest among major states.
  • Road network reaches 70,000 km of new/upgraded roads since 2005 โ€” the most extensive state road program in Indian history.
  • Special status demand revived as Bihar argues GST compensation alone does not address structural fiscal disadvantage.
  • Agriculture budget at Rs 14,000 crore includes Rs 2,000 crore for integrated fisheries and dairy development.
  • JEEViKA enters market linkage phase with Rs 2,000 crore allocation; SHG products listed on e-commerce platforms.
  • Education spending of Rs 22,000 crore covers 5,000 model schools under Mukhyamantri Samagra School Vikas.
  • Patna Metro Rail Phase 1 receives Rs 2,000 crore as construction tenders are awarded.
  • Power availability crosses 4,500 MW against 6,000 MW demand โ€” deficit narrows to 25%.
  • Flood management spending at Rs 2,500 crore for Kosi and Gandak embankment modernization and early warning systems.
  • Healthcare at Rs 7,500 crore includes Rs 1,500 crore for Ayushman Bharat state top-up implementation.
  • Ethanol production from maize receives Rs 500 crore as Bihar leverages its corn surplus for biofuel.
  • Own tax revenue reaches Rs 22,000 crore, a six-fold increase from 2005-06 levels.
  • Fiscal deficit contained at 2.5% of GSDP with revenue surplus maintained at 0.6%.

Compare Bihar Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2014-152015-162016-172017-182018-19
Total Expenditureโ€”โ€”โ€”Rs 1.1 lakh croreRs 1.24 lakh crore
Revenue Receiptsโ€”โ€”โ€”Rs 87,200 croreRs 97,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 21,200 croreRs 24,500 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”3.3%3.4%
Own Tax Revenueโ€”โ€”โ€”Rs 25,100 croreRs 28,200 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Bihar State Budget 2018-19

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.

Compare Bihar with other states

Side-by-side comparison of fiscal metrics across Indian states