Patna: A political row has erupted in Bihar over the state’s financial position, with leader of opposition Tejashwi Prasad Yadav accusing the ruling alliance of fiscal mismanagement and unsustainable borrowing.
In a post on X, Tejashwi alleged that the government had spent Rs 41,000 crore in the run-up to elections, leaving the state struggling to meet obligations such as pensions, scholarships and salaries.
Allegations Of Financial Irregularities
Tejashwi cited findings of the Comptroller and Auditor General of India (CAG), claiming that expenditure worth Rs 90,000 crore lacked utilisation certificates.
He described the administration as “a government without vision or roadmap” and warned that continued borrowing could push Bihar into a deeper fiscal crisis.
राज्य में व्याप्त वित्तीय संकट से जूझ रही अनैतिक सरकार ने हालिया दिनों में दूसरी बार निधि निकासी एवं व्यय नियंत्रण संबंधित पत्र जारी किया है।
अपनी कुर्सी बचाने के लिए भ्रष्ट रिटायर्ड और कॉम्प्रोमाइज्ड उच्च अधिकारियों और एजेंसियों से डरी भूंजा गैंग ने अचेत निष्क्रिय मुख्यमंत्री… pic.twitter.com/u5nAlGiPlv
— Tejashwi Yadav (@yadavtejashwi) April 22, 2026
Rs 12,000 Crore Borrowing Plan
The criticism comes as the state government considers borrowing Rs 12,000 crore to ease financial pressure and clear pending payments, including social security pensions for nearly one crore beneficiaries.
Officials say the move is intended to stabilise finances and restart stalled schemes, including the student credit card programme and departmental funding.
Rising Debt Concerns
Estimates suggest Bihar’s total liabilities could cross Rs 4 lakh crore by 2025–26, with the state already paying over Rs 100 crore daily in interest.
Economists note that while fresh borrowing may provide short-term relief, it also highlights the state’s increasing reliance on debt to sustain essential services.
Impact On Welfare Schemes
Delays in payments under welfare schemes, including student credit support and scholarships, have affected beneficiaries across the state.
Students awaiting funds under the credit card scheme have reported disruptions to their education plans, adding to concerns about financial management.
The developments have intensified the political contest between the opposition and the ruling NDA, with both sides framing the issue as central to governance and accountability.
While the proposed borrowing may provide immediate relief, questions remain over whether Bihar can reduce its dependence on debt and stabilise its finances in the years ahead.
