Bihar Budget 2025: Major Announcements, Financial Allocations, and Government’s Development Plans

KKN Gurugram Desk | The Bihar Finance Minister Samrat Chaudhary has presented the Bihar Budget 2025 in the state legislature. The budget outlines the government’s commitment to comprehensive development and highlights significant financial allocations for various sectors.

According to Samrat Chaudhary, when Nitish Kumar’s government came to power in 2005, the total budget allocation was just ₹23,800 crore. In contrast, the current financial year’s budget has expanded to ₹3.17 lakh crore, showcasing the growth in Bihar’s economy under the double-engine government of the state and the center. He also acknowledged Prime Minister Narendra Modi’s leadership, stating that the Union Budget 2025 has given special attention to Bihar’s needs.

Bihar’s Financial Commitments and Debt Repayment

The Bihar government plans to repay a total loan of ₹22,819 crore in the current financial year. Out of this amount:

• ₹1,600 crore will be paid to the central government
• The rest of the amount will be used to clear previous loans

Apart from this, major allocations in the budget include:

• ₹4,012 crore for Panchayati Raj bodies
• ₹2,160 crore for urban local bodies

Additionally, Bihar is expected to receive ₹1.38 lakh crore as its share from the central taxes in FY 2025, which is significantly higher than ₹1.13 lakh crore received last year.

Sector-Wise Allocation in Bihar Budget 2025

The Bihar Budget 2025 focuses on the development of various key sectors with major financial allocations:

• Education Department: ₹60,974 crore
• Health Sector: ₹20,335 crore
• Road Infrastructure: ₹17,908 crore
• Home Department: ₹17,831 crore
• Rural Development: ₹16,043 crore
• Energy Department: ₹13,484 crore
• Social Welfare (SC, ST, Minorities, OBCs, EBCs): ₹13,000 crore+

These investments aim to boost education, healthcare, infrastructure, and rural development, contributing to the state’s overall economic growth.

Bihar Government’s Initiatives for Farmers

In a major boost to the agriculture sector, the Bihar government has announced:

• Procurement of pulses such as Arhar, Moong, and Urad dal at Minimum Support Price (MSP)
• Establishment of cold storage facilities across the state
• Setting up government facility outlets in every block (following the model of Sudha Dairy)
• New marketing strategies to promote agricultural products
• Formation of vegetable producer committees in every block by the end of the year

These initiatives are expected to help farmers increase their income and get better market opportunities for their produce.

Women-Centric Initiatives in Bihar Budget 2025

The Bihar government has introduced several schemes for women empowerment and welfare, including:

• Kanya Vivah Mandap: Construction of wedding halls for underprivileged girls’ marriages
• Women’s Market (Mahila Haat) in Patna: Special shopping spaces for women
• Women’s Gym Facilities: Exclusive gyms for women in major cities
• Pink Toilets: Dedicated sanitary facilities for women in urban areas
• Hostels for Working Women: Safe accommodation facilities in key cities
• Pink Bus Services: Introduction of women-only buses, where both drivers and conductors will be women
• Modern Bus Stands: New bus terminals across districts with special safety measures for women

These steps reflect the government’s commitment to women’s safety, security, and economic empowerment.

Boost to Industrial Development and Employment in Bihar

The Bihar government is focusing on attracting investment and creating jobs through:

1. Bihar Industrial Investment Promotion Policy – To boost industrial growth and create employment opportunities
2. Bihar Food Processing Policy 2025 – Aiming to strengthen the food processing industry in the state
3. Bihar Pharmaceutical Promotion Policy 2025 – Designed to encourage the pharmaceutical sector
4. Bihar Plastic Manufacturing Policy – Targeting investment in the plastic manufacturing industry

These policies are expected to generate employment and enhance Bihar’s industrial ecosystem.

Healthcare and Social Welfare Announcements

The Bihar government has made several significant announcements in the healthcare sector, including:

• 108 new medical centers in urban slum areas
• Bihar Cancer Care Society to be established for better cancer treatment facilities
• New Cancer Hospital in Begusarai (identified as a region with high cancer cases)

Additionally, the budget focuses on education and welfare schemes for backward communities:

• Pre-matric scholarship for backward and extremely backward classes to be doubled, with ₹875 crore allocated
• SC-ST students’ pre-matric scholarships to be doubled, with an annual allocation of ₹260 crore

These initiatives will help underprivileged students pursue education and improve their future prospects.

Key Takeaways from Bihar Budget 2025

• The budget has increased significantly compared to 2005, reaching ₹3.17 lakh crore
• Major focus on education, healthcare, and infrastructure development
• Loan repayment of ₹22,819 crore planned for this financial year
• Women empowerment schemes, including pink buses, women’s hostels, and dedicated markets
• New industrial policies to boost investment and employment
• Special support for farmers through MSP procurement and better marketing facilities
• Focus on slum development and healthcare expansion

With these major announcements and policy decisions, the Bihar government aims to accelerate the state’s economic growth and overall development.

The Bihar Budget 2025 reflects a clear vision for development, with a focus on infrastructure, education, women empowerment, industrial growth, and healthcare.

The state government, with the support of the central government, is making strategic investments to transform Bihar into a more developed and industrialized state.

While the budget includes several ambitious initiatives, its effective implementation will be key to ensuring that the benefits reach the people of Bihar.

Stay tuned for more updates and expert analysis on Bihar’s economic and development policies!