Patna: After Nitish Kumar formed a government in Bihar for the 10th time, expectations surrounding the flagship Women’s Employment Scheme have surged. The scheme, widely credited by political observers for boosting the NDA’s election victory, promised financial assistance to help women start small businesses and become self-reliant.
Ahead of the Assembly polls, the state government credited a lump sum of Rs 10,000 each into the bank accounts of 1.40 crore women. It also announced that those who successfully establish and expand their businesses could receive Rs 2 lakh within six months. With November nearing an end, questions are growing louder: When will the next transfer come? Will all the beneficiaries qualify? And what will be the cost on Bihar’s economy?
Here’s a detailed explainer.
Government’s plan: Rs 10,000 first, Rs 2 lakh after business growth
The scheme, announced by Chief Minister Nitish Kumar on August 29, promises financial support to women aged 18 to 60. Beneficiaries receive Rs 10,000 initially to set up a micro-enterprise. Their business progress will then be assessed before they become eligible for Rs 2 lakh in multiple instalments.
Since September, the government has transferred funds in five phases. Another 10 lakh women are set to be covered by November 28, taking the total to 1.40 crore beneficiaries.
Who is eligible?
Guidelines for the scheme specify:
- The beneficiary must be a member of the Jeevika self-help group network
- Neither the woman nor her husband should be a taxpayer
- No one in the household should hold a government or contractual job
- Only one member per family can receive the benefit
- According to the Bihar Caste Census 2023, the state has 2.77 crore families. The scheme aims to cover half of them.
Will all women receive Rs 2 lakh?
No. Only women whose businesses show verifiable growth qualify for the larger support.
Explaining the verification process, Divya Kumari, DPO of Jeevika Vaishali, said, “Women are being asked to fill business details before receiving Rs 10,000. After assessment, money for business growth will be released in 3–4 instalments of Rs 50,000 each under the supervision of Village Organizations.”
Beneficiaries will need proper documentation such as a separate bank account and GST number where applicable.
The cost challenge for the Bihar treasury
If all 1.40 crore beneficiaries receive Rs 2 lakh, Bihar would need Rs 2.8 lakh crore — almost 88% of the state’s total 2025–26 budget of Rs 3.16 lakh crore.
Even extending support to:
- 1 crore women = Rs 2 lakh crore
- 50 lakh women = Rs 1 lakh crore
- 20 lakh women = Rs 40,000 crore
- 10 lakh women = Rs 20,000 crore
Rising expenditure and widening fiscal gap
As per the Budget Estimates (BE) 2025–26:
- Bihar expects Rs 1.93 lakh crore (74% of income) from the Centre
- The state will generate Rs 67,741 crore from its own revenue
- Salaries and pensions alone exceed Rs 65,000 crore
- Pre-election announcements — free electricity, increased honorariums for frontline workers, and cash transfers for women — are already adding an extra burden of around ₹58,300 crore, economists estimate.
How can the government arrange the funds?
Experts suggest three possible approaches:
- Borrow more — but limits based on GDP restrict expansion
- Cut capital expenditure — slowing development, road and bridge projects
- Extend the scheme timeline — the most likely option, according to analysts
Even if the entire annual budget hike (around 10%) was used solely for this scheme, Bihar could assist only 15–17 lakh women in a year — assuming zero spending on new infrastructure.
What is the government planning now?
Sources suggest that after taking oath on November 20 — an event attended by PM Narendra Modi — Nitish Kumar has directed the Finance Ministry to frame a fundraising strategy. A high-level meeting with Finance Minister Bijendra Yadav was held last week at the CM residence.
The government is now considering recalling Dr. Arunish Chawla, a 1992-batch IAS officer currently on central deputation and known for his economic expertise, to streamline financial planning and mobilize resources.
Awaiting April deadline
Officially, the government has said that Rs 2 lakh assistance will begin six months after the initial transfer — implying that beneficiaries paid in September could receive the next instalment by April 2026.
As millions of women track their bank accounts with hope, the big question remains: Can the Bihar government balance its financial constraints with its ambitious promise of women’s economic empowerment?
