The state budget for the year 2026-27 set to be placed in the state assembly during the upcoming budget session is likely to rise moderately with the size of the budget outlay to be around ₹3.20 lakh crore to ₹3.24 lakh crore as against the current fiscal year’s budget outlay of ₹3.17 lakh crore, officials in the know said.
“The budget size of the coming fiscal year would depend much on the central devolutions and grants to be announced by the Centre in the Union budget to be placed soon. If the devolutions are higher, the size of the budget outlay would be increased accordingly,” said an official in the finance department.
In the current fiscal year 2025-26, Bihar has been promised a central devolution of ₹1.43 lakh crore of which ₹1.15 lakh crore has already been received through disbursements, officials said. “There is expectation that around 28,000 crore more would come in the next couple of months till March as instalments of central devolution,” said another official.
However, there are indications the proposed budget would be making allocations to various departments after assessing the fund availability in wake of the recent initiatives of the state government to increase the allowance money under various schemes like old age pension, widows and also the initial monetary assistance of ₹10,000 given under Mukhyamantri Mahila Rojgaar Yojana (MMRY).
In the first session of the state legislature in December, 2025 of the new NDA government formed after Bihar polls, the second supplementary budget was placed having an outlay of ₹91,717 crore out of which around ₹21,000 crore were provisioned for women empowerment for implementation of the ongoing schemes including the MMRY.
“The assessment of fund availability is always a primary task undertaken before the finalisation of the budget outlay of the state. This time, allocations would be made to departments running major schemes including the rural development department, education, health and agriculture,” said another official.
Significantly, the state finance department has already asked departments to send proposals for fund allocation required to implement various development works and establishment needs for incorporation in the third supplementary budget to be placed during the upcoming budget session.
“The state budget would be finalised by February 20 after the assessment of the fund provisions and the announcement of central devolutions to be made to Bihar as state’s share in central taxes. Of course, the budget size this time may not witness a very high increase and could see a jump by three to five percent as against the current budget size,” said a finance official, in the know of the matter.
Meanwhile, state finance minister Bijendra Prasad Yadav is scheduled to attend the meeting of state finance ministers of states called by Union finance minister Nirmala Sitharaman in New Delhi on January 10.
Officials said Yadav would be pressing for higher central devolutions, monetary assistance in implementation of state schemes and other issues for the state’s better fiscal health during the meeting. The pending arrears under MGNREGA to the state under material costs and wages may also be discussed, officials said.
Sources also said that funds would be also demanded for flood control measures and flood management in north Bihar, which is affected perennially by floods every year.
