The Bihar government, led by Chief Minister Nitish Kumar, is gearing up to present its last budget before the upcoming Assembly elections, expected around October-November 2024. Given the political scenario, this budget is anticipated to be a populist one, focusing on key voter segments such as women, farmers, and youth. With nearly six crore women in the state, the government is likely to introduce several schemes aimed at their welfare.

Additionally, as CM Nitish Kumar has already pledged employment opportunities for 34 lakh youth, the budget is expected to outline funding allocations for this promise. Rural development, infrastructure, social security, and education are other priority areas that may receive substantial financial backing.

Bihar’s Budget Expectations: Development and Political Strategy

As Bihar prepares for elections, public expectations from the budget are sky-high. The ruling government is expected to present an estimated budget of ₹3.15 lakh crore, with special provisions for schemes announced during CM Nitish’s Pragati Yatra.

Some of the major focus areas include:

• Employment Generation: The government’s ambitious plan to provide jobs to 12 lakh youth and self-employment opportunities to 22 lakh.
• Women Empowerment: Special schemes under Jeevika Didi loans, additional subsidies for women entrepreneurs, and an expected hike in widow pension.
• Rural Development: Enhancing existing schemes and launching new ones for village infrastructure and agriculture.
• Social Security: Doubling of old-age pension and possible new health insurance schemes.
• Infrastructure Growth: Allocation of funds for ongoing and new projects initiated under the Pragati Yatra.

With elections approaching, the budget will likely balance economic development with political strategy, aiming to garner support from different voter groups.

Bihar’s Economic Survey 2024-25: A Strong Growth Trajectory

Ahead of the budget, the Bihar government presented the 19th edition of the Economic Survey 2024-25, showcasing significant growth in the state’s economy.

Key Highlights of the Economic Survey:

• Gross State Domestic Product (GSDP) Growth:
  • In 2011-12, Bihar’s economy stood at ₹2.47 lakh crore.
  • By 2023-24, it has surged to ₹8.54 lakh crore, marking a 3.5x increase.
• Agricultural Growth:
  • Rice production: Up 21% from 2022-23 to 2023-24.
  • Wheat production: Increased by 10.7%.
  • Maize production: A massive 66.6% growth between 2020-21 and 2023-24.
  • Horticulture boom:
    • Mango production up by 9.7%.
    • Litchi production up by 11.7%.
    • Litchi plantation area increased by 6%.

This data indicates that Bihar’s agricultural sector is booming, contributing significantly to economic progress. Given this growth, the budget is likely to allocate funds for modernizing agriculture, improving irrigation, and supporting farmers with subsidies.

Key Focus Areas of Bihar Budget 2024

1. Employment and Youth Welfare

CM Nitish Kumar has pledged to create 34 lakh employment opportunities, with 6 lakh jobs already provided. It is expected that:

• ₹10,000 crore or more could be allocated to employment schemes.
• Skill development programs will receive financial backing.
• Private sector incentives may be introduced to encourage job creation.
• Government recruitment drives could be fast-tracked.

With elections ahead, the government may prioritize filling 3 lakh more jobs before polling.

2. Women Empowerment: A Key Electoral Focus

Women, comprising nearly 50% of Bihar’s electorate, are expected to be at the center of this budget. Potential announcements include:

• Expansion of Jeevika Didi Loan Scheme for small businesses.
• Increased pension for widows (expected to double from the current ₹400 to ₹1,000).
• Special financial aid for Dalit women entrepreneurs.
• Maternity and childcare support schemes.

3. Rural Development and Infrastructure Growth

Rural Bihar remains a stronghold for the Nitish government, and major financial provisions for villages are expected:

• Increased allocation for rural roads, bridges, and electrification.
• New funding for irrigation projects and agricultural reforms.
• More investment in sanitation and drinking water projects.

4. Social Security and Pension Schemes

With inflation concerns, the Bihar government may announce:

• Doubling of old-age pension from ₹400 to ₹1,000 per month.
• New health insurance scheme for elderly citizens.
• Financial aid for economically weaker sections based on caste census data.

5. Agriculture and Farmers’ Welfare

As agriculture plays a crucial role in Bihar’s economy, the budget is likely to include:

• Interest-free loans for farmers.
• Subsidies on fertilizers and seeds.
• New irrigation projects to boost production.
• Financial aid for small-scale farmers.

Opposition’s Stand: Pressure on Nitish Government

The Rashtriya Janata Dal (RJD), led by Tejashwi Yadav, is expected to raise concerns over:

• The actual number of jobs created versus the government’s claims.
• Rising inflation and its impact on household budgets.
• Demand for cheaper gas cylinders (₹500 each) and financial aid for women (₹2,500/month).
• A push for increasing reservation to 65%, a demand recently struck down by the Supreme Court.

The opposition aims to highlight shortcomings in employment generation and economic relief measures, making these key election issues.

A Populist Budget Before Elections?

Given the high stakes of the 2024 elections, Nitish Kumar’s government will likely present a populist budget, ensuring a mix of development initiatives and social welfare benefits.

Possible Budget Allocations:

The government will aim to strike a balance between fiscal responsibility and voter appeasement, ensuring major allocations align with electoral strategy.

Conclusion

The Bihar Budget 2024 will be a defining moment for CM Nitish Kumar’s government. With Assembly elections around the corner, it will serve as a financial roadmap and political manifesto, targeting women, youth, and rural voters. While the Economic Survey highlights impressive growth, the opposition will keep pressing on employment figures, inflation, and reservation policies.

As Nitish Kumar gears up for one of the most critical elections of his political career, this budget will likely play a pivotal role in shaping public perception and voter sentiment.

1. What is the total estimated budget for Bihar in 2024?

The Bihar government is expected to present a ₹3.15 lakh crore budget for 2024.

2. What are the key focus areas of the budget?

Employment, women’s empowerment, rural development, agriculture, and social security are expected to be key priorities.

3. How many jobs has the Bihar government promised?

The Nitish government has promised 34 lakh employment opportunities, including 12 lakh government jobs and 22 lakh self-employment opportunities.

4. Will pensions be increased in this budget?

Yes, the old-age pension is expected to increase from ₹400 to ₹1,000 per month, and widow pensions may also see a hike.

5. How is the Bihar economy performing?

The Bihar economy has grown 3.5 times since 2011-12, with agriculture and rural development seeing significant improvement.