Patna: Bihar, India’s third most populous state, continues to lag behind economically, with the lowest per capita income in the country. According to the Bihar Economic Survey 2024-25, the average monthly income of a Bihari stands at just ₹5,028, significantly lower than other states.
In comparison, Bihar’s earnings are 10 times lower than Sikkim, 8 times lower than Delhi, and 6 times lower than Telangana. Even neighboring Jharkhand fares better in income levels.
Education remains a major concern in Bihar, with every fourth child dropping out after Class 8, according to the Economic Survey. The situation worsens in higher classes, where 26.31% of students discontinue studies between Classes 9 and 12.
During the 2023-24 academic session, dropout rates were recorded as follows:
- 9.06% in primary classes (1 to 5)
- 1.25% in middle school (6 to 8)
- 26.31% in secondary school (9 to 12)
Despite 1.68 crore students being enrolled in primary and higher secondary education, the dropout rate highlights deep-rooted challenges in Bihar’s education sector.
Half of Bihar’s Development Budget Goes to Electricity Subsidies
Bihar’s financial allocation raises concerns about imbalanced spending priorities. According to PRS Legislative Research, out of ₹2.56 lakh crore allocated in the 2024-25 budget, only ₹29,416 crore (13%) is designated for capital expenditure—essential for infrastructure development.
However, a significant portion of revenue expenditure is directed towards electricity subsidies, which, according to NITI Aayog’s Fiscal Health Index 2025, adds a considerable financial burden on the state. A report submitted to the 15th Finance Commission questions the necessity of such a large subsidy, stating that it may be hindering Bihar’s overall development.
Economic Output Disparities Across Districts
Bihar’s overall economic output remains alarmingly low. For instance, in 2021-22, the per capita economic output in Patna district was ₹1.15 lakh, whereas in Sheohar district, it was just ₹18,980—nearly six times lower. Shockingly, 32 out of 38 districts in Bihar have per capita output below the state average.
Healthcare Crisis: Half of Government Hospitals Lack Doctors and Nurses
Bihar’s healthcare system faces severe staff shortages, with less than half of the sanctioned medical workforce currently employed. The state has 12,721 government hospitals, but only 7,144 doctors are serving against 12,895 sanctioned posts.
A similar crisis exists among nursing staff:
- Only 9,650 nurses are working against 17,460 sanctioned posts for Grade A nurses.
- Only 15,205 ANMs (Auxiliary Nurse Midwives) are employed, despite 29,479 sanctioned positions.
The shortage of medical professionals further burdens an already struggling healthcare system, limiting access to quality treatment for millions of Bihar’s residents.
Bihar’s economic survey paints a grim picture of the state’s financial health, education system, and healthcare infrastructure. With low per capita income, high dropout rates, and an overreliance on subsidies, the state continues to face significant hurdles in achieving sustainable development. Experts suggest that increased investment in education, healthcare, and infrastructure is crucial to breaking Bihar’s cycle of economic stagnation.
