Today : Dec 23, 2025
Politics
03 December 2025

Bihar Unveils Record Budget To Fund Election Promises

A historic supplementary budget aims to expand welfare schemes and job creation, but experts question the state’s financial planning as political leaders defend bold spending.

On December 3, 2025, the Bihar government made headlines by tabling an unprecedented second supplementary budget of over Rs 91,717 crore for the financial year 2025-26. This move, presented in the legislative Assembly, aims to fulfill a raft of ambitious poll promises and expand key welfare schemes, most notably the Mukhyamantri Mahila Rojgar Yojana (MMRY). The scale of the budget and its political context have sparked both applause and concern across the state’s political and economic landscape.

The supplementary budget, the largest ever in Bihar’s history, comes on the heels of the National Democratic Alliance’s (NDA) sweeping victory in the recent Assembly elections. According to ETV Bharat, the MMRY played a pivotal role in this electoral outcome. The scheme, which provides Rs 10,000 to women to start their own ventures, saw over 1.4 crore women receive funds ahead of the November polls. By early December, that figure had climbed to 1.56 crore, with the government promising an additional Rs 2 lakh in assistance to those whose enterprises prove successful.

The MMRY’s impact was not limited to financial empowerment. The scheme is widely credited with driving a historic surge in women’s voter turnout. As per data cited by ETV Bharat, 71.6% of the 3.51 crore women voters cast their ballots, compared to 62.8% of the 3.94 crore male voters. This contributed to a record overall turnout of 66.91%—the highest in post-Independence Bihar.

Tabled under Article 205 of the Constitution, which allows states to seek additional grants not included in the original budget, the supplementary budget will be debated and voted on December 5, as is customary for money bills. The sheer size of the budget—when combined with the earlier supplementary budget of Rs 50,000 crore—means that supplementary allocations now account for roughly 44% of Bihar’s annual budget of Rs 3.17 lakh crore for 2025-26.

This has raised eyebrows among financial experts. A senior officer from the state’s finance department, speaking to ETV Bharat, said, “The huge size of the second supplementary, combined with the first supplementary, indicates the failure of financial planning in the state. Riding on election promises, they together amount to around 44 per cent of the annual budget. This is a very unhealthy trend in financial planning and should be stopped. The Comptroller and Auditor General (CAG) would definitely castigate the government over this.” The officer emphasized that no other state has tabled such a massive supplementary budget in recent memory.

Breaking down the numbers, over Rs 51,253 crore is earmarked for annual schemes. This includes Rs 7,420 crore in centrally sponsored schemes, with the Centre’s share, and Rs 6,335 crore from the state. State schemes account for Rs 37,498 crore, of which Rs 21,000 crore is dedicated to the MMRY. An additional Rs 3,085 crore has been set aside for old age and widow pensions, a scheme that saw its monthly benefit rise from Rs 400 to Rs 1,100 under the previous government led by Chief Minister Nitish Kumar.

The supplementary budget also covers a broad array of other initiatives: school education, Ayushman Bharat, rural roads, irrigation, Anganwadi programs, police modernization, social security, water conservation, urban infrastructure, agriculture, sports facilities, airports, medical colleges, and energy projects, among others. Over Rs 40,462 crore is allocated for establishment and committed expenditures. This includes a Rs 21,689 crore transfer from the contingency fund, Rs 9,243 crore for departmental salaries, and Rs 6,462 crore to support the Mukhyamantri Vidyut Upbokhta Sahayata Yojana—a scheme providing 125 units of free electricity to all consumers, launched by Nitish Kumar ahead of the elections.

Governor Arif Mohammad Khan, in his address to a joint session of the Assembly on the same day, outlined the government’s agenda for the next five years. As reported by Hindustan Times, Khan reiterated the commitment to create 10 million jobs and employment opportunities by 2030, doubling the five million jobs already generated since 2005. He also emphasized the financial assistance of up to Rs 2 lakh for women entrepreneurs under the MMRY, contingent on the success of their enterprises.

Khan’s speech highlighted Bihar’s developmental strides since the NDA first came to power in 2005. He pointed to significant improvements in education, health, infrastructure, and women’s empowerment. Notably, the state now boasts 1.1 million Jeevika women self-help groups, 50% reservation for women in panchayati raj and urban local bodies, and a 35% quota for women in jobs and police positions. “So far, 15.6 million women have received Rs 10,000 each under the Chief Minister Mahila Rojgar Yojana, while the rest will get the money soon,” Khan stated.

The governor also expressed gratitude to the Union government and Prime Minister Narendra Modi for their “generous financial assistance” to Bihar. He cited successful development measures such as free uniforms and bicycles for girls, improved agricultural road maps, and a dramatic increase in agricultural output. According to Khan, yields of paddy, wheat, and maize have doubled, while fish production has risen by 2.5 times, making Bihar increasingly self-reliant. The fourth agricultural road map, with an outlay of Rs 1.62 lakh crore, aims to further boost these gains.

Electrification has been another point of pride, with the state achieving 100% electrification and providing 125 units of free electricity to all consumers. “Be it SC, ST, OBC, EBC, or minorities, no section has been left untouched, as the government has schemes and incentives for them,” Khan asserted, underscoring the inclusive nature of the state’s welfare programs.

Meanwhile, political developments continue apace. Janata Dal (United) leader Narendra Narayan Yadav has filed his nomination for the post of deputy speaker and is set to be elected unopposed on December 4, having held the position in 2024 as well.

The Bihar government’s record supplementary budget signals both a bold commitment to fulfilling electoral promises and a willingness to invest in social welfare at an unprecedented scale. Yet, the size and speed of these allocations have ignited a debate over fiscal prudence and the long-term sustainability of such spending. As the Assembly prepares to debate the budget, the state stands at a crossroads—balancing the promise of rapid social progress with the realities of sound financial management.