Chapter 2: State Finances
- The state government’s budget has grown considerably over the years, enabling significant investments in infrastructure crucial for Bihar’s economic development.
- More funds have been allocated towards achieving developmental goals, leading to visible improvements across various sectors.
- Despite increased spending, the government has maintained fiscal discipline, ensuring financial sustainability.
- Its flexible financial management has helped avoid potential risks and ensured economic resilience.
Break-up of Total Expenditure (₹2,52,082 crore):
- Scheme Expenditure: ₹1,01,835 crore (40.4%)
- Establishment & Committed Expenditure: ₹1,50,247 crore (59.6%)
Functional Allocation of Expenditure (2023-24):
- Social Services: ₹83,225 crore (43.7%)
- General Services: ₹59,218 crore (31.1%)
- Economic Services: ₹48,071 crore (25.2%)
| Key Area | Highlights |
|---|---|
| Revenue Receipts | – Grew from ₹1,98,230 crore (2022-23 RE) to ₹2,19,547 crore (2023-24 BE) – Further estimated at ₹2,34,459 crore in 2024-25 (BE) |
| Own Tax Revenue | – Rose from ₹42,483 crore (2022-23) to ₹48,361 crore (2023-24) – Share in total revenue: 22.4% |
| Own Non-Tax Revenue | – Increased from ₹4,135 crore (2022-23) to ₹5,257 crore (2023-24) – Growth: 27.1% |
| Share in Central Taxes | – Amounted to ₹1,08,774 crore in 2023-24 (approx. 49.6% of total revenue receipts) |
| Grants-in-Aid from Centre | – ₹57,067 crore in 2023-24, projected to reduce to ₹53,677 crore in 2024-25 |
| Revenue Expenditure | – Estimated at ₹2,20,014 crore in 2023-24 BE and ₹2,28,563 crore in 2024-25 BE |
| Capital Expenditure | – Targeted at ₹49,634 crore in 2024-25, representing 17.8% of total expenditure |
| Fiscal Deficit | – Estimated at ₹25,567 crore (2.97% of GSDP) in 2023-24 and ₹29,466 crore (3.45% of GSDP) in 2024-25 |
| Public Debt | – Total liabilities estimated at ₹2.85 lakh crore in 2023-24 (33.3% of GSDP), projected at ₹3.18 lakh crore (34.7% of GSDP) in 2024-25 |
Key Takeaway:
Bihar’s state finances are showing a stable growth trajectory with an emphasis on increasing own revenue generation and fiscal prudence. Although dependence on central taxes remains high, efforts are visible in boosting internal revenues. The capital expenditure focus highlights a developmental push, while the state manages to keep its fiscal deficit within permissible limits.