Bihar Home Minister Bijendra Prasad Yadav present in the pre-budget meeting with Union Finance Minister Nirmala Sitharaman.
State Bureau, Patna. Pre Budget Meeting: Bihar government has to arrange additional funds to fulfill the election promises along with continuing the ongoing schemes.
For this, more loans are expected from the open market along with grants from the Centre. During the pre-budget discussion, Finance Minister Bijendra Prasad Yadav informed Union Finance Minister Nirmala Sitharaman about the expectations of Bihar.
Submitting a detailed memorandum related to the development of Bihar, he urged for permission to take two percent additional loan compared to the Gross State Domestic Product (SGDP).
Said that more borrowing is required to bring the per capita income of Bihar at par with the national average. That means Bihar government is now expecting five percent loan as compared to SGDP.
SGDP at current prices in Bihar in the financial year 2025-26 is estimated at Rs 1097264 crore and against this a maximum of three percent loan is allowed.
Financial Year: GSDP: Public Debt: Public Debt to GSDP2025-26: 1097264 crore: 353819.11 crore: 32.25 percent2024-25: 976514 crore: 309379.31 crore: 31.68 percent
Citing the growth rate of 13.09 percent at current prices in the financial year 2024-25 in Bihar, Bijendra said that to accelerate welfare-oriented development programs and strengthen human capital, the Bihar government has started the third phase of seven decisions.
For this, adequate financial assistance is required from the Centre. He requested to increase the limit of interest free loan from Rs 50 thousand crore to Rs 1 lakh crore.
Also sought merger of cess into divisible fund with additional credit limit in the Union Budget for 2026-27 and a special flood relief package.
The Center still has authority over cess. After its merger with the divisible fund, additional funds will be inflow to Bihar.
Expectation of share in cess and surcharge
Bijendra said that the share of cess and surcharges in the total tax revenue has increased from 10.4 percent in the year 2011-12 to 13.6 percent now.
Since these are not part of the Centre's divisible fund, states like Bihar are losing their constitutional share.
Special package for protection from flood and drought
He requested for a "Relief and Disaster Resilient Package" to prevent the massive devastation caused by rivers like Kosi, Gandak and Bagmati in North Bihar.
In this, emphasis has been laid on modern technologies like satellite forecasting, GIS mapping and real-time monitoring. Also, an appeal was made to give priority to river linking project for permanent solution to floods and drought.
Modern technology and industrial development in agriculture
To create employment in the state, the need for centrally sponsored schemes based on new technologies like AI, drones and blockchain in the agriculture sector was expressed.
In view of the abundant water resources and availability of skilled labour, special support was sought for setting up new industries in the state.