Questions are being raised on economy
Has Bihar become poor now? We are not saying this, but these days there is a fierce debate on this in the politics of Bihar. This debate has been given by birth leader of opposition RJD, Tejashwi Yadav. He says that the financial condition of the government has worsened. Bihar is moving towards an economic crisis and the government does not have enough resources even to pay the salaries of the employees and run social schemes. The opposition is accusing the government of financial mismanagement, while the government claims that Bihar’s economy is continuously getting stronger and the pace of development is faster than before. There is also discussion on whether Bihar has become poor again. Let us tell you the reality through 5 figures.
At the center of this debate are some figures and incidents which have raised questions in the minds of people. Issues like the sudden surge in revenue deficit, widening fiscal deficit, reports of emergency fund being used for payment of social pensions and delay in salaries of employees have given the opposition an opportunity to attack the government. However, on the other hand, the government is calling these circumstances temporary and technical and is saying that the economic condition of the state is stable and strong. In such a situation, the question is whether Bihar is really moving towards an economic crisis or is it just a part of political allegations and counter-allegations.
1. Journey from revenue surplus to revenue deficit
Bihar government estimates that the state will get a revenue surplus of Rs 1,143 crore in the financial year 2026-27, which will be 0.1 percent of the state’s GSDP. But just before this, the revised estimates for the year 2025-26 show a different picture. According to them, the state is estimated to have a revenue deficit of Rs 76,315 crore, which is 6.7 percent of GSDP. Revenue surplus means that the government’s income is more than its regular expenses, while revenue deficit shows the opposite situation. In such a situation, such a huge difference within a single year remains the biggest reason for the opposition’s questions.
2. Fiscal deficit well above budget estimates
Fiscal deficit is considered an important measure of the financial health of any state. Bihar government had set a target of limiting the fiscal deficit to 3 percent of GSDP in the budget of 2025-26. But according to revised estimates it is likely to increase to 11.8 percent.
That means the government has had to spend much more than its income and for this it may have had to resort to additional resources or borrowing. On the basis of this figure, the opposition is accusing the government of losing financial discipline. Economic experts also believe that high fiscal deficit for a long time can increase pressure on the financial condition of any state.
3. Use of emergency fund for social pension
The controversy gained further momentum when it came to light that the government had to use emergency funds to pay social security pensions. Generally, emergency funds are used in case of natural disaster, unexpected crisis or extraordinary circumstances. Allegations are being made that if emergency resources have to be resorted to even to pay for regular schemes, then it can be considered a sign of financial pressure. However, the government has described it as a part of administrative and financial management and said that the priority was to deliver money to the beneficiaries on time.
4. Delay in salary increases concerns
Delay in salaries of government employees and teachers also became a major reason for this debate. In the months of April and February, many employees could not get their salaries on time, after which questions started being raised about the financial condition of the government. The opposition called it a sign of increasing pressure on the state treasury. However, the government rejected these allegations and said that the delay in salary payment was due to technical reasons and procedural problems and not due to lack of funds. Despite this, the situation arising regarding payment of salaries for two consecutive months further intensified the debate.
5. Government’s claim
Amidst all these allegations and questions, the stand of the state government is completely different. The government says that Bihar’s economy is continuously expanding and expenditure on development projects has also increased. The government argues that government expenditure has increased due to increased investment in roads, bridges, education, health and infrastructure, which should not be seen as economic weakness but as a development strategy. The government also says that it is not unusual for large-scale development works to create temporary financial pressure and its positive impact will be visible on the state’s economy in the coming years.
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