Bihar Finance Minister Vijendra Yadav presented the 2026-27 budget of over ₹3.47 lakh crore in the Bihar Legislative Assembly. The government stated that the goal is to make life easier for all sections of society. The state's growth rate is projected to be 14.9%. The Nitish government has described it as a budget that will further the goal of a "developed Bihar." Chief Minister Nitish Kumar posted on social media, saying that this budget is based on the principle of "development with justice," taking into account every section of society – farmers, youth, women, entrepreneurs, and poor families.

Key Features of the Budget:

•             Total Budget: ₹3,47,589.76 crore, the highest in Bihar's history.

•             Increase in Budget Size: An increase of approximately ₹30,694 crore compared to the financial year 2025-26.

•             Revenue and Committed Expenditure: ₹2,25,434 crore (approximately 65%).

•             Capital Expenditure: ₹63,455.84 crore (approximately 18.26% of the total).

•             Plan Expenditure: ₹1,22,155 crore (approximately 35%).

•             Fiscal Deficit: Estimated at approximately 2.99% of GSDP.

•             Budget aligned with the 'Seven Resolves-3' roadmap: Aiming to double per capita income and create 1 crore jobs. 

Key Points

1.            Education: The education sector received the highest allocation of ₹68,216 crore, prioritizing school education, teacher support, infrastructure, and quality of learning. Model schools will be established in every panchayat to promote quality education.

2.            Women Empowerment and Social Welfare: The budget emphasizes supporting 1.56 crore women through self-help groups and related welfare schemes.Social welfare provisions include ₹7,724 crore for schemes benefiting women, children, the elderly, and vulnerable sections of society.

3.            Agriculture and Farmers: Enhanced Support: Eligible farmers will receive ₹9,000 per year under the 'Jannayak Karpoori Thakur Kisan Samman Nidhi', which is ₹3,000 more than before.

4.            Employment and Jobs: Under 'Saat Nishchay-3', the goal is to create 1 crore employment opportunities by 2030. A special provision has been made for financial assistance of up to ₹2 lakh to every eligible woman under the Chief Minister Women Employment Scheme. Skill development centers will be established on a hub-and-spoke model to develop employment-oriented skills.

5.            Infrastructure and Connectivity: Major infrastructure projects have been announced, including five new expressways, improved road networks, and urban development. Work is underway on airport development and regional air connectivity projects.

6.            Health and Medical Services: The budget strengthens healthcare services with provisions for upgrading hospitals and expanding medical facilities. Provisions have been made to increase the number of beds at PMCH and establish new medical colleges in additional districts.

7.            Industry and Investment: The new industrial policy aims to attract large-scale investment and strengthen private sector participation. Measures have been taken to attract private investment of up to ₹50 crore in the industrial sector. The revival of closed sugar mills has been provided for under the Industrial Support Mission. Claim to develop urbanization in accordance with national standards: The state government has stated that it is committed to promoting urbanization in accordance with national standards. Currently, Bihar has 19 municipal corporations, 89 municipal councils, and 156 nagar panchayats. The government aims to develop all these urban bodies to make cities more beautiful and provide citizens with basic and improved facilities.

8.            Progress of urban housing under the Pradhan Mantri Awas Yojana: Under the Pradhan Mantri Awas Yojana (Urban), a total of 4,18,394 houses have been sanctioned so far. Of these, 1,75,249 families have been provided with permanent houses. The budget describes this scheme as a significant initiative towards providing housing facilities to the urban poor.

9.            Sewerage Infrastructure in Ganga Cities under Namami Gange Scheme: Under the Namami Gange scheme, 39 STP and sewerage network projects have been sanctioned for 22 out of the 24 Ganga cities in the state at a cost of Rs. 8,426.01 crore. Of these, construction work on 24 projects has been completed. The government says that this will strengthen the cleanliness of the Ganga river and urban sanitation systems.

10.          Focus on Solid Waste Management and Waste-to-Energy: Under the Swachh Bharat Mission (Urban), an Integrated Solid Waste Management project has been approved on a PPP mode for the management of solid waste generated from Patna city and 12 surrounding urban local bodies. This project also includes a provision for electricity generation from waste. In addition, for the processing of solid waste in 261 urban local bodies of the state, MRF plants with a capacity of 2938 TPD, compost plants with a capacity of 3387 TPD, a biomethanization plant of 100 TPD, and sanitary landfills with a capacity of 1311 TPD have been sanctioned.

11.          Status of Schemes under Smart City Mission: A total of 122 schemes were sanctioned under the Smart City Mission in Patna, Biharsharif, Bhagalpur, and Muzaffarpur. Of these, work on 101 schemes has been completed. The government says that these schemes have improved urban infrastructure and services.

12.          Investment in Transport and Public Infrastructure: Of the 43 bus stand construction schemes sanctioned to improve the transport system in urban local body areas, construction work on 34 has been completed. Along with this, the Samrat Ashok Bhavan scheme, a multipurpose building project, has been sanctioned in 143 urban local bodies of the state, of which construction work on 44 buildings has been completed.

13.          Facilities for Street Vendors and Women: To facilitate street vendors, the construction of 66 vending zones has been sanctioned in urban local bodies. Of these, 25 vending zones have been completed. Meanwhile, keeping in mind the convenience of women, a total of 105 Pink Toilet construction projects have been sanctioned in 20 urban local bodies of the state.

14.          Patna Metro and Urban Transport: Work is underway on the 32.50 km long Patna Metro Rail project for a fast and organized transport system in Patna city. Metro rail operations have already commenced on 3.45 km of this stretch since October 6, 2025. The government believes that this will provide relief to the city's traffic system.

15.          Comprehensive Urban Development and Other Schemes: Under the Chief Minister's Comprehensive Urban Development Scheme, a total of 3,208 schemes have been sanctioned in various urban local bodies of the state at an estimated expenditure of Rs. 2,091.90 crore. Under the Seven Resolves of Self-Reliant Bihar - Part 2, work has been completed on 10 of the sanctioned crematorium construction projects in 41 cities and important river ghats. In addition, 38 storm water drainage schemes have been sanctioned at a cost of Rs. 3,559.95 crore to address the problem of waterlogging in urban areas.