Patna: The Bihar government unveiled its annual budget for the fiscal year 2026-27 on Tuesday, presenting a comprehensive financial blueprint just two days after the Union budget announcement. With a substantial total outlay of Rs 3.48 lakh crore, this budget charts an ambitious path toward human development, employment creation, and inclusive economic growth for the state.
Core Principles and Development Roadmap
Anchored in the principle of 'justice with development', the budget builds upon the transformative initiatives of Saat Nischay-1 and Saat Nischay-2. The government has now laid out Saat Nischay-3, an ambitious roadmap spanning 2025-2030, with three primary objectives: doubling per-capita income, generating 1 crore employment opportunities, and institutionalizing women-led growth.
Financial assistance of Rs 10,000 has already been extended to 1.56 crore women across Bihar, with plans for enhanced support in the coming fiscal year. The budget prioritizes empowerment for 94 lakh poor families from all sections of society, alongside large-scale private investment and infrastructure expansion to ensure inclusive and sustainable development.
Budget Allocation Breakdown
The state government has prioritized development expenditure by allocating 67% of the total budget toward this goal. The detailed allocation reveals:
- Revenue expenditure: Rs 2.84 lakh crore to manage interest payments, salaries, and pensions
- Capital expenditure: Rs 63,455 crore dedicated to fulfilling the state's infrastructural needs
- Scheme expenditure: 35% of the budget (Rs 1.22 lakh crore)
- Establishment and committed expenditure: 65% of the budget (Rs 2.25 lakh crore), primarily for social sector initiatives
Financial Projections and Economic Indicators
The revenue receipts for 2026-27 are estimated at Rs 2.85 lakh crore, with the state's own tax revenue projected at Rs 65,800 crore. Capital receipts show an encouraging upward trend, increasing by 11.04% from Rs 56,263 crore in 2025-26 to Rs 62,475 crore in 2026-27.
Bihar's economic progress is reflected in the per capita income figures, which have surged from Rs 31,142 in 2014-15 to Rs 76,490 in 2024-25, demonstrating sustained economic growth. The fiscal deficit for 2026-27 is estimated at Rs 39,111 crore, equivalent to 2.99% of the Gross State Domestic Product (GSDP), comfortably within the Fiscal Responsibility and Budget Management (FRBM) limits.
Sector-Specific Allocations and Initiatives
The budget includes significant allocations for key sectors:
- Education: Rs 800 crore for model schools and Rs 900 crore to the Bihar State Education Financial Corporation
- Water infrastructure: Rs 1,026 crore for Grameen Jalapurti Yojana
- Women's economic participation: Focused approach through schemes like Mukhyamantri Mahila Rojgar Yojana, Satat Jeevikoparjan, and Jeevika
- Infrastructure development: Rs 92,104 crore allocated for creating world-class transportation systems, reliable and surplus energy, and comprehensive rural-urban infrastructure
Comprehensive Development Vision
The 2026-27 budget revolves around agricultural and industrial development as primary drivers for job creation and income enhancement. Additional initiatives receiving prominence include minor irrigation projects, civic facilities in urban areas, and the establishment of degree colleges in each district, all aimed at improving ease of living for Bihar's residents.
This budget represents a strategic investment in Bihar's future, balancing immediate social welfare needs with long-term economic development goals through carefully calibrated financial planning and targeted policy interventions.
