Bihar Budget 2023: Nitish Kumar Govt Unveils Rs 2.79 Lakh Crore Budget, Showcasing Robust Growth

Patna, February 13: The Nitish Kumar-led government in Bihar presented a budget of Rs 2.79 lakh crore for the upcoming financial year, asserting the state's strong financial position and impressive growth rate of 10.64%, the highest in the country.

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Impressive Growth Rate and Economic Indicators

Presenting the budget before the state assembly, Deputy Chief Minister Samrat Choudhary highlighted Bihar's remarkable growth rate, which surpasses the national average and is significantly higher than the global economic growth rate of 3.1% in 2022-23, as per the International Monetary Fund (IMF) analysis.

Choudhary, who holds the finance portfolio, emphasized Bihar's achievement of the highest gross state domestic product (GSDP) rate of 10.64%, followed by Assam (10.2%) and Delhi (9.2%) in 2022-23.

Commitment to Overall Development and Poverty Reduction

Choudhary expressed the government's commitment to the state's overall development and poverty reduction efforts. He announced that the government successfully lifted 2.5 crore people out of poverty in the current financial year.

Significant Budgetary Allocations for Key Sectors

The budget outlines substantial budgetary allocations for various sectors. A consolidated fund of Rs 52,639.03 crore has been earmarked for the education sector, while Rs 15,235 crore will be invested in road construction and maintenance.

Additionally, the government has allocated Rs 14,932 crore for the health sector, Rs 14,296 crore for rural development, Rs 12,377 crore for welfare schemes, Rs 11,298 crore for urban development, and Rs 11,025 crore for strengthening panchayati raj institutions in the state.

Emphasis on Social Development, Education, and Health

Choudhary emphasized the importance of social development alongside education and health. The budget reflects this focus through significant investments in these areas.

Budget Amidst Opposition Uproar

The budget presentation was marked by disruptions from opposition members, who protested and staged a walkout, criticizing the Chief Minister's recent political decisions.

Decline in Maternity Deaths

Choudhary highlighted a notable achievement in reducing maternity deaths by 47%, demonstrating the government's commitment to improving healthcare.

Budget Estimates and Fiscal Deficit

The state's budget estimate for the next fiscal year stands at Rs 2,78,725.72 crore, indicating an increase of Rs 16,840 crore compared to the current financial year.

While the budget document asserts the state's sound financial condition, it acknowledges the fiscal deficit, which stands at 5.97% of the GSDP, exceeding the prescribed conditional limit of 3.5%.

However, the state is projected to generate a revenue surplus in the next financial year, and the fiscal deficit is expected to be contained within the FRBM limits of 3% of state GDP.

Central Government Grants and Public Debt

The finance minister declined to comment on the possibility of reduced grants-in-aid from the Central government to the state.

According to the budget document, the grants-in-aid from the Central government are estimated at Rs 52,160.62 crore in 2024-25, which is slightly lower than the previous year's budget estimate of Rs 53,377.92 crore.

The outstanding public debt is projected to reach Rs 2,97,908.99 crore in 2024-25, accounting for 30.51% of the GSDP.

The total debt, including liability in the public account estimate, is estimated at Rs 3,48,370.45 crore in 2024-25, representing 35.67% of the GSDP.