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Economics pre+mains тАв Bilingual Chapter (Hindi)

Chapter 26: bihar ka bajat (navinatam)

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bihar ka bajat (navinatam) - Chapter Notes

Hindi
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Chapter 26: Bihar Budget (Latest: 2026-27)

The Bihar Budget is the annual financial statement of the Government of Bihar. It presents the estimated receipts and expenditure of the state for a financial year and reflects the government's priorities regarding development, infrastructure, education, health, agriculture, employment and social welfare.

The latest budget is the Bihar Budget 2026-27, presented on 3 February 2026. The total expenditure proposed in the budget is about тВ╣3.48 lakh crore.

1. Meaning of State Budget

A state budget is an annual statement showing the estimated receipts and expenditure of the state government during a financial year.

Financial Year: 1 April to 31 March of the following year.

Example: Bihar Budget 2026-27 relates to the financial year from 1 April 2026 to 31 March 2027.

2. Objectives of the Bihar Budget

  • Promoting economic growth and development.
  • Creating employment opportunities.
  • Improving education and healthcare.
  • Developing roads, bridges and other infrastructure.
  • Promoting agriculture and allied activities.
  • Reducing poverty and regional disparities.
  • Strengthening social security and welfare.
  • Improving public services and administrative capacity.
  • Promoting investment and industrial development.
  • Maintaining fiscal stability.

3. Bihar Budget 2026-27: Key Figures

Particular 2026-27
Total Expenditure тВ╣3,47,589.76 crore
Scheme Expenditure тВ╣1,22,155.42 crore
Establishment & Commitment Expenditure тВ╣2,25,434.34 crore
Total Receipts тВ╣3,47,752.60 crore
Revenue Receipts тВ╣2,85,277.11 crore
Capital Receipts About тВ╣62,475 crore
State's Own Revenue тВ╣75,202.98 crore
State's Own Tax Revenue тВ╣65,800 crore
State's Non-Tax Revenue тВ╣9,402.98 crore
BPSC Fact: The Bihar Government's Budget Highlights 2026-27 put total expenditure at тВ╣3,47,589.76 crore and total receipts at тВ╣3,47,752.60 crore.

4. Composition of Total Expenditure

Component Amount
Scheme Expenditure тВ╣1,22,155.42 crore
Establishment & Commitment Expenditure тВ╣2,25,434.34 crore
Total Expenditure тВ╣3,47,589.76 crore

5. Revenue Receipts

Revenue receipts are those receipts of the government which generally do not create liabilities or reduce government assets.

Major Components of Bihar's Revenue Receipts

Source 2026-27 Estimate
Revenue Receipts тВ╣2,85,277.11 crore
Receipts from Central Government тВ╣2,10,074.12 crore
State's Own Revenue тВ╣75,202.98 crore
State's Own Tax Revenue тВ╣65,800 crore
State's Own Non-Tax Revenue тВ╣9,402.98 crore

6. Bihar's Own Revenue

State's own revenue consists mainly of the state's own tax revenue and non-tax revenue.

State's Own Revenue = Own Tax Revenue + Own Non-Tax Revenue

= тВ╣65,800 crore + тВ╣9,402.98 crore
= тВ╣75,202.98 crore

7. Major Sources of State Tax Revenue

  • State GST.
  • Taxes on vehicles.
  • Stamp duty and registration fees.
  • State excise duties.
  • Taxes on electricity and other state-level taxes.

8. Central Transfers to Bihar

Bihar receives substantial financial resources from the Union Government. These transfers are important because Bihar's own revenue base is relatively smaller compared with its expenditure requirements.

Central Government Source 2026-27 Estimate
State's Share of Central Taxes тВ╣1,58,178.32 crore
Grants-in-Aid from Central Government тВ╣51,895.80 crore
Total тВ╣2,10,074.12 crore

9. Revenue Expenditure and Capital Expenditure

Revenue Expenditure

Revenue expenditure is expenditure on the regular functioning of the government and on services that generally do not directly create physical assets.

Examples:

  • Salaries and wages.
  • Pensions.
  • Interest payments.
  • Administrative expenditure.
  • Routine maintenance and public services.

Capital Expenditure

Capital expenditure creates assets or reduces liabilities and generally contributes to long-term productive capacity.

Examples:

  • Road and bridge construction.
  • Irrigation projects.
  • Government buildings.
  • Infrastructure development.
  • Investment in public assets.

10. GSDP and Economic Growth

The Gross State Domestic Product (GSDP) represents the value of goods and services produced within Bihar during a financial year.

2026-27 Projection: Bihar's GSDP at current prices is projected at approximately тВ╣13.1 lakh crore, with a projected growth of about 15% over 2025-26.

11. Major Development Priorities in Bihar Budget 2026-27

Education

  • Strengthening school and higher education infrastructure.
  • Improving educational facilities.
  • Expansion of skill and technical education.
  • Development of human capital.

Health

  • Improvement of healthcare infrastructure.
  • Expansion of health services.
  • Strengthening public health facilities.

Infrastructure

  • Road construction and improvement.
  • Bridge development.
  • Urban infrastructure.
  • Rural connectivity.
  • Water and other public infrastructure.

Agriculture

  • Improving agricultural productivity.
  • Irrigation and water management.
  • Crop diversification.
  • Promotion of allied activities.
  • Strengthening agricultural value chains.

Industry and Employment

  • Promotion of investment.
  • Development of industrial infrastructure.
  • Support for MSMEs.
  • Skill development.
  • Employment generation.

12. Committed Expenditure

Committed expenditure represents expenditure that the government is required to incur due to existing commitments such as salaries, pensions, interest payments and repayment of public debt.

Component 2026-27 Estimate
Salary тВ╣96,128.50 crore
Pension тВ╣35,170.48 crore
Interest тВ╣25,363.67 crore
Repayment of Public Debt тВ╣22,664.83 crore
Total тВ╣1,79,327.48 crore
BPSC Focus: Salary, pension, interest payments and debt repayment constitute major components of committed expenditure. A high committed expenditure burden can reduce the flexibility available for new development expenditure.

13. Fiscal Deficit

Fiscal deficit represents the excess of total expenditure over total receipts excluding borrowings. It indicates the borrowing requirement of the government.

Fiscal Deficit = Total Expenditure тИТ Total Receipts excluding Borrowings

Fiscal deficit is not necessarily negative. Borrowing can finance productive capital expenditure, but excessive borrowing may increase future debt-servicing obligations.

14. Revenue Deficit

Revenue deficit occurs when revenue expenditure exceeds revenue receipts.

Revenue Deficit = Revenue Expenditure тИТ Revenue Receipts

A revenue surplus means that revenue receipts are greater than revenue expenditure.

15. Primary Deficit

Primary deficit is the fiscal deficit excluding interest payments.

Primary Deficit = Fiscal Deficit тИТ Interest Payments

16. Importance of Bihar Budget for the State Economy

  • Determines the allocation of public resources.
  • Supports economic growth.
  • Creates infrastructure.
  • Promotes employment.
  • Supports agriculture and rural development.
  • Improves education and healthcare.
  • Provides social security.
  • Influences private investment through public infrastructure.
  • Helps reduce regional and social inequalities.

17. Bihar Budget and Inclusive Development

Inclusive budgeting aims to ensure that the benefits of economic development reach different sections and regions of society.

Sector Expected Contribution
Education Human capital formation
Health Improved productivity and quality of life
Agriculture Rural income and employment
Infrastructure Connectivity and investment
Industry Employment and diversification
Social Welfare Reduction of vulnerability and inequality

18. Major Challenges for Bihar's Public Finance

  • Relatively low own-revenue base.
  • High dependence on central transfers.
  • Large expenditure requirements for infrastructure.
  • High committed expenditure.
  • Need for greater employment generation.
  • Need to improve tax collection efficiency.
  • Balancing welfare expenditure with capital investment.
  • Managing public debt and interest obligations.

19. Way Forward

  1. Increase the state's own revenue base.
  2. Improve tax administration and compliance.
  3. Increase productive capital expenditure.
  4. Promote private investment and industrialisation.
  5. Strengthen MSMEs and local enterprises.
  6. Improve the efficiency of public expenditure.
  7. Invest in education, health and skill development.
  8. Increase agricultural productivity and value addition.
  9. Maintain fiscal discipline.
  10. Use technology for transparent and efficient delivery of public services.

20. Bihar Budget 2026-27: Quick Revision

Item Key Fact
Latest Budget 2026-27
Budget Presented 3 February 2026
Total Expenditure тВ╣3,47,589.76 crore
Scheme Expenditure тВ╣1,22,155.42 crore
Establishment & Commitment Expenditure тВ╣2,25,434.34 crore
Total Receipts тВ╣3,47,752.60 crore
Revenue Receipts тВ╣2,85,277.11 crore
State's Own Revenue тВ╣75,202.98 crore
Own Tax Revenue тВ╣65,800 crore
Central Tax Share тВ╣1,58,178.32 crore
Central Grants-in-Aid тВ╣51,895.80 crore
Projected GSDP About тВ╣13.1 lakh crore
Projected GSDP Growth About 15%

21. BPSC Important Questions

  • What is a state budget? Explain its major components.
  • Discuss the major features of Bihar Budget 2026-27.
  • Explain the sources of revenue of the Bihar Government.
  • Differentiate between revenue expenditure and capital expenditure.
  • What is fiscal deficit? Explain its significance for Bihar.
  • Discuss the role of the Bihar Budget in economic development.
  • Explain the importance of central transfers in Bihar's finances.
  • Discuss the major challenges of public finance in Bihar.
  • Explain the importance of education, health and infrastructure in Bihar's budgetary priorities.
  • How can Bihar improve its own revenue generation?

22. BPSC Focus

Remember the latest budget figures: Bihar Budget 2026-27 has total expenditure of about тВ╣3.48 lakh crore and total receipts of about тВ╣3.48 lakh crore.

Most important concepts: Revenue Receipt, Capital Receipt, Revenue Expenditure, Capital Expenditure, Fiscal Deficit, Revenue Deficit, Primary Deficit, Committed Expenditure, Central Transfers and State's Own Revenue.

One-line summary: The Bihar Budget is an important instrument for mobilising resources, financing development, creating infrastructure, promoting employment and maintaining fiscal stability in the state.

Source: Government of Bihar, Budget Highlights 2026-27; PRS Legislative Research, Bihar Budget Analysis 2026-27.

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