Patna: Bihar’s NDA government is set to present the state budget for the financial year 2026-27 in the Assembly today. Finance Minister Vijendra Prasad Yadav will table the budget, which is expected to see an increase of over 10% compared to the previous year, with a strong focus on job creation and infrastructure development.
This is the first full budget of the NDA government’s new term under Chief Minister Nitish Kumar. Over the last two decades, Bihar’s budget size has grown from ₹26,000 crore in 2005-06 to over ₹3.17 lakh crore in 2025-26. This year, the total budget is expected to surpass ₹3.5 lakh crore. Beyond steering development, the budget will also indicate how the government manages substantial expenditures on salaries, pensions, and other welfare programs.
Special Provisions for Youth
During the election campaign, the Nitish government promised “1 crore jobs.” Provisions for skill development and creation of new positions for youth are expected to feature prominently. As this is the first budget of the new term, significant allocations may be made for social welfare and employment-focused schemes.
Managing Salary and Pension Burden
One of the state government’s major challenges remains managing administrative expenses. Salary expenditure has grown from ₹20,658.91 crore in 2020-21 to ₹81,473.45 crore in 2025-26. Along with pensions and interest payments on past loans, mandatory expenditures limit funds available for development projects, making budget balancing a complex task.
Revenue Dependence on Centre Remains High
According to the RBI, Bihar generates only 27% of its revenue internally, far lower than developed states like Gujarat (76%) and Maharashtra (70%). Although revenue collection has improved, the state continues to rely heavily on central taxes and grants. Experts predict over 10% growth in the budget this year, potentially taking the total size to a record level.
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