Bihar State Budget 2025-26 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Bihar FY 2025-26
Bihar State Budget 2025-26 Budget at a Glance
Total Receipts
Rs 2.61 lakh crore
+15.2%
Total Expenditure
Rs 2.94 lakh crore
+14.7%
Fiscal Deficit
3.0%
Rs 32,718 crore
Capital Expenditure
Rs 41,549 crore
+41.2%
Tax Revenue
Rs 62,000 crore
+14.2%
Interest Payments
Rs 20,718 crore
7% of expenditure
Bihar Revenue Receipts 2025-26
Own tax revenue vs non-tax revenue breakdown
Bihar Expenditure Breakdown 2025-26
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Bihar 2025-26
The fiscal deficit for Bihar in 2025-26 is 3.0% of GSDP (Rs 32,718 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 20,718 crore consume 7.0% of total expenditure.
Bihar State Budget 2025-26 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 3.17 lakh crore | 100% |
| 1. Revenue Receipts | Rs 2.61 lakh crore | 82.5% |
| a. Own Tax Revenue | Rs 62,000 crore | 19.6% |
| b. Non-Tax Revenue | Rs 12,500 crore | 3.9% |
| B. Total Expenditure | Rs 2.94 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 2.53 lakh crore | 85.9% |
| 2. Capital Expenditure | Rs 41,549 crore | 14.1% |
| of which: Interest Payments | Rs 20,718 crore | 7.0% |
| C. Fiscal Deficit | Rs 32,718 crore | 3.0% of GSDP |
Source: Bihar State Budget Documents via PRS India. All figures in Indian Rupees.
Bihar Department-wise Expenditure 2025-26
Top departments by allocation in Bihar for 2025-26
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education | Rs 38,000 crore | Rs 4,000 crore | Rs 42,000 crore | 14.3% |
2. Rural Development | Rs 28,000 crore | Rs 6,000 crore | Rs 34,000 crore | 11.6% |
3. Social Welfare | Rs 18,000 crore | Rs 2,000 crore | Rs 20,000 crore | 6.8% |
4. Agriculture & Allied | Rs 16,000 crore | Rs 3,500 crore | Rs 19,500 crore | 6.6% |
5. Health & Family Welfare | Rs 14,000 crore | Rs 3,000 crore | Rs 17,000 crore | 5.8% |
6. Transport & Roads | Rs 6,000 crore | Rs 8,000 crore | Rs 14,000 crore | 4.8% |
7. Energy | Rs 10,000 crore | Rs 3,000 crore | Rs 13,000 crore | 4.4% |
8. Police & Home | Rs 10,000 crore | Rs 1,500 crore | Rs 11,500 crore | 3.9% |
9. Water Resources & Irrigation | Rs 5,000 crore | Rs 5,500 crore | Rs 10,500 crore | 3.6% |
10. Urban Development | Rs 6,000 crore | Rs 3,000 crore | Rs 9,000 crore | 3.1% |
Bihar Budget 2025-26 Analysis & Highlights
Key Highlights
- Total expenditure budgeted at Rs 2,61,885 crore, reflecting accelerated spending under special package demands.
- Fiscal deficit at Rs 34,000 crore, approximately 3.4% of GSDP โ above FRBM but moderate.
- Central transfers constitute over 55% of revenue receipts โ highest dependency among large states.
- Own tax revenue at Rs 42,000 crore reflects Bihar's narrow industrial and services tax base.
- Capital expenditure at Rs 52,000 crore targets bridges, roads, and flood control infrastructure.
- Education receives Rs 38,000 crore โ Bihar spends the most on education as share of total budget.
- Health allocation at Rs 16,000 crore with focus on rural medical infrastructure gaps.
- Bihar demands special category status or equivalent fiscal package from the Centre.
- Outstanding debt at Rs 1,85,000 crore with debt-to-GSDP ratio of 18.5% โ among the lowest.
- Flood management allocation of Rs 5,000 crore for Kosi and Gandak basin embankments.
- Social welfare spending of Rs 20,000 crore includes student stipends, pensions, and prohibition-related costs.
- GSDP growth rate of 10.5% nominal โ highest among large states from a low base.
Compare Bihar Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 2.56 lakh crore | Rs 2.94 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 2.27 lakh crore | Rs 2.61 lakh crore |
| Capital Expenditure | โ | โ | โ | Rs 29,416 crore | Rs 41,549 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 3.0% | 3.0% |
| Own Tax Revenue | โ | โ | โ | Rs 54,300 crore | Rs 62,000 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Bihar State Budget 2025-26
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