Bihar Tuesday presented a Rs 3.48 lakh crore budget for 2026–27 — a nearly 10 percent increase over last year — with the Nitish Kumar government sharpening its focus on rural development, free electricity, women’s employment, and industrialisation. At the same time, it also reallocates spending away from several infrastructure and water-related sectors.
The budget reflects government priorities in women empowerment, employment generation, industrialisation, and key commitments such as the Mukhyamantri Mahila Rozgar Scheme offering Rs 2 lakh to women, 125 units of free electricity for all, and initiatives towards 1 crore job creation.
Education holds the largest share at 17.32 percent with Rs 60,205 crore, down Rs 760 crore from Rs 60,965 crore in 2025-26. The new Higher Education Department, separated from education, receives Rs 8,012 crore. Together, they total Rs 68,217 crore, up Rs 7,252 crore, with their combined share rising from 19.24 percent to 19.63 percent.
Pensions account for 10.12 percent at Rs 35,170 crore, up Rs 1,781 crore, reflecting increased beneficiary numbers and monthly amounts raised from Rs 400 to Rs 1,100. Interest payments are at 7.30 percent with Rs 25,364 crore, up Rs 2,350 crore. Loan repayments total Rs 22,665 crore (6.52 percent), down Rs 155 crore.
Rural development, which handles the Mukhyamantri Mahila Rozgar Scheme, increased by Rs 7,608 crore to Rs 23,701 crore (6.82 percent share, up from 5.08 percent). Energy rose by Rs 5,253 crore to Rs 18,737 crore (5.39 percent, up from 4.26 percent), supporting the free electricity scheme and sector advancements.
Urban development and housing grew by Rs 3,255 crore to Rs 15,237 crore (4.38 percent, up from 3.78 percent), likely to better support smart city projects. Industries increased by Rs 1,371 crore to Rs 3,338 crore (0.96 percent, up from 0.62 percent). Finance Department Secretary Anand Kishor noted in a post-budget press conference, “This budget focuses on industrialisation”.
Health rose by Rs 1,235 crore to Rs 21,270 crore, though its share fell from 6.32 percent to 6.12 percent. The home department, under Deputy Chief Minister Samrat Chaudhary, increased by Rs 2,302 crore to Rs 20,133 crore. Revenue and land reforms, under Deputy Chief Minister Vijay Sinha, rose by Rs 234 crore to Rs 2,190 crore (share up from 0.62 percent to 0.63 percent).
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Road construction increased by Rs 598 crore to Rs 7,405 crore, but its share dipped from 2.15 percent to 2.13 percent. Other increases include SC and ST welfare (up Rs 151 crore to Rs 2,087 crore), dairy, fisheries and animal resources (up Rs 134 crore to Rs 1,916 crore), youth, employment and skill development (up Rs 148 crore to Rs 1,380 crore), environment, forest and climate change (up Rs 169 crore to Rs 1,075 crore), civil aviation (up Rs 167 crore to Rs 698 crore), sugar industries (up Rs 148 crore to Rs 340 crore) with emphasis on reopening closed mills, minorities welfare (up Rs 26 crore to Rs 896 crore), and prohibition, excise and registration (up Rs 50 crore to Rs 743 crore).
Departments with reductions include panchayati raj (down Rs 307 crore to Rs 10,996 crore), social welfare (down Rs 305 crore to Rs 8,470 crore, despite its role in social security pensions), water resources (down Rs 324 crore to Rs 7,127 crore), building construction (down Rs 741 crore to Rs 6,154 crore, share down from 2.18 percent to 1.77 percent), tourism (down Rs 438 crore to Rs 666 crore), minor water resources (down Rs 488 crore to Rs 1,351 crore), labour resources and migrant workers welfare (down Rs 860 crore to Rs 372 crore), election (down Rs 866 crore to Rs 324 crore), agriculture (down Rs 82 crore to Rs 3,446 crore), public health engineering (down Rs 233 crore to Rs 2,469 crore), science and technology (down Rs 155 crore to Rs 1,004 crore), and disaster management (down Rs 168 crore to Rs 4,799 crore).
The decreases in water resources and disaster management allocations occur amid Bihar’s annual flood challenges, potentially affecting control measures. Similarly, the reduction in building construction and marginal share drop in road construction may influence infrastructure pace.
Rural works rose by Rs 211 crore to Rs 11,312 crore, planning and development fell by Rs 6 crore to Rs 2,597 crore, BC and MBC welfare decreased by Rs 39 crore to Rs 1,749 crore, and co-operatives dropped by Rs 31 crore to Rs 1,201 crore. Finance increased by Rs 95 crore to Rs 3,742 crore, law by Rs 55 crore to Rs 1,737 crore.
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Minor changes include general administration (up Rs 18 crore to Rs 1,273 crore), food and consumer protection (down Rs 122 crore to Rs 1,195 crore), transport (down Rs 180 crore to Rs 351 crore), department of sports (down Rs 8 crore to Rs 241 crore), and art and culture (down Rs 90 crore to Rs 188 crore).
In total, 30 departments recorded budget increases, while 25 saw decreases, with some additional sectors experiencing share reductions despite absolute gains, indicating reallocations to support priority areas in rural, energy, urban, and industrial development alongside administrative needs.
