Patna/New Delhi: Union Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2026–27 in Parliament today, and Bihar is looking to the Centre with high expectations for big-ticket announcements on infrastructure, industry, and employment generation.
For the first time since 2010, the NDA has secured more than 200 seats in Bihar, strengthening the state’s political leverage at the Centre. Against this backdrop, the Nitish Kumar government is hopeful of enhanced financial support and policy measures aimed at accelerating Bihar’s economic growth.
Chief Minister Nitish Kumar has repeatedly reiterated his promise of providing jobs or employment opportunities to one crore people over the next five years. At the same time, the state government has been rolling out welfare schemes and is now looking towards the Union Budget to support large-scale infrastructure and industrial development.
Sources in the state government say Bihar is expecting fresh announcements related to airports, expressways, national highways and railways. Proposals for new connectivity projects and faster completion of existing ones are likely to be highlighted as key demands from the Centre.
Bihar seeks higher borrowing limit, interest-free loans
Bihar Finance Minister Bijendra Yadav has urged the Centre to increase the limit of the 50-year interest-free loan for capital expenditure to Rs 1 lakh crore. The state believes this will help in building large bridges, roads and power projects.
At present, Bihar is allowed to borrow up to around 3 percent of its Gross State Domestic Product (GSDP). The state has requested that this limit be raised to 5 percent so that it can mobilise more funds for development work.
Bihar plans to borrow around Rs 80,000 crore
The Bihar government is planning to borrow about Rs 80,000 crore. Earlier, the proposal was to raise nearly Rs 1 lakh crore from the open market and other sources, but concerns over a rising fiscal deficit have led to a rethink.
Even with borrowing of around Rs 80,000 crore, officials say there is a possibility that the fiscal deficit may exceed the 3 percent limit.
Demand for industry, modern farming and job creation
With the focus firmly on creating one crore jobs, the Nitish government has sought strong support from the Centre for setting up industries in Bihar. The state has argued that Bihar has adequate water resources and skilled labour, making it suitable for industrial investment.
The state has requested a special package to attract new industries and generate large-scale employment.
Bihar has also highlighted the potential of its agriculture sector and has asked for central schemes to modernise farming. The government has demanded technology-driven initiatives in agriculture, including the use of AI, drones and blockchain, to boost productivity and create rural employment.
All eyes are now on the Union Budget 2026–27 to see whether Bihar’s expectations translate into concrete financial allocations and project announcements.
