Bihar State Budget 2020-21 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2020-21
Bihar State Budget 2020-21 Budget at a Glance
Total Receipts
Rs 98,200 crore
-4.5%
Total Expenditure
Rs 1.35 lakh crore
+3.8%
Fiscal Deficit
4.5%
Rs 23,500 crore
Capital Expenditure
Rs 19,500 crore
-14.5%
Tax Revenue
Rs 26,800 crore
-9.2%
Interest Payments
Rs 12,700 crore
9% of expenditure
Bihar Revenue Receipts 2020-21
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2020-21
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Bihar 2020-21
The fiscal deficit for Bihar in 2020-21 is 4.5% of GSDP (Rs 23,500 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's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 12,700 crore consume 9.4% of total expenditure.
Bihar State Budget 2020-21 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.41 lakh crore | 100% |
| 1. Revenue Receipts | Rs 98,200 crore | 69.9% |
| a. Own Tax Revenue | Rs 26,800 crore | 19.1% |
| b. Non-Tax Revenue | Rs 4,200 crore | 3.0% |
| B. Total Expenditure | Rs 1.35 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 1.16 lakh crore | 85.6% |
| 2. Capital Expenditure | Rs 19,500 crore | 14.4% |
| of which: Interest Payments | Rs 12,700 crore | 9.4% |
| C. Fiscal Deficit | Rs 23,500 crore | 4.5% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Budget 2020-21 Analysis & Highlights
Key Highlights
- COVID-19 combined with the return migration of approximately 30 lakh migrant workers.
- Massive reverse migration from Gujarat, Maharashtra, and Delhi created acute employment crisis.
- Tax revenue collapsed as commercial activity halted and consumption plummeted.
- Health system severely strained โ Bihar had among the lowest per-capita hospital beds nationally.
- MGNREGA demand surged as returned migrants sought rural employment guarantee.
- Central transfers provided critical support but fell short of pandemic-era needs.
- Prohibition continued despite fiscal pressure โ no restoration of excise revenue considered.
- Flood management costs added to pandemic burden as monsoon flooding hit North Bihar.
- Bihar state elections in October-November 2020 influenced spending patterns.
- Capital expenditure compressed but road construction continued as employment generation tool.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2016-17 | 2017-18 | 2018-19 | 2019-20 | 2020-21 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.3 lakh crore | Rs 1.35 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 1.03 lakh crore | Rs 98,200 crore |
| Capital Expenditure | โ | โ | โ | Rs 22,800 crore | Rs 19,500 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.3% | 4.5% |
| Own Tax Revenue | โ | โ | โ | Rs 29,500 crore | Rs 26,800 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2020-21
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