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📰 Bihar Economic Current Affairs (Dec 2024 - Aug 2026) Chapter 2: Bihar Economy, State Budget, Industrial & Infrastructure Outlays

Mod 1: Bihar State Budget 2025-26 - Macro-Fiscal Matrix & Outlays

📖 Chapter 2 of 8 🧩 Module 1 of 14 ⏱️ ~2 min read 💡 19 MCQs
Topic Part 1 of 2

Historic Budget Size & Macroeconomic Growth Parameters:

Presented in early March 2025 by Finance Minister Samrat Choudhary, the Bihar State Budget for FY 2025-26 reached an all-time record outlay of ₹3,16,895.02 crore (~₹3.17 lakh crore). This represents a direct expansion of ₹38,169.30 crore over the previous fiscal budget (₹2.78 lakh crore in 2024-25). The Gross State Domestic Product (GSDP) at current prices was projected to reach ₹10.97 lakh crore in 2025-26, registering an annualized nominal growth exceeding 14%.


Receipts, Deficit Management & FRBM Adherence:

  • Revenue Surplus: Projected at ₹8,831.18 crore (0.80% of GSDP), reflecting positive operational consolidation.
  • Fiscal Deficit: Estimated at ₹32,718.31 crore, strictly anchored at 2.98% of GSDP, comfortably below the statutory 3.0% ceiling mandated under the Bihar Fiscal Responsibility and Budget Management (FRBM) Act.
  • Expenditure Bifurcation: Revenue Expenditure stands at ₹2,52,000 crore (79.52% of total outlay), whereas Capital Outlay and asset creation account for ₹64,895 crore (20.48%).
  • Central Tax Devolution: State share in divisible central taxes stood at an estimated ₹1,38,515.85 crore under the 15th Finance Commission recommendations (Bihar's share remains 10.058%).

Exam View: Key Takeaways for Competitive Examinations:

  • Total Budgetary Outlay (2025-26): ₹3,16,895.02 crore (~₹3.17 lakh crore).
  • Projected GSDP: ₹10,97,264 crore (~₹10.97 lakh crore).
  • Targeted Fiscal Deficit: 2.98% of GSDP (₹32,718 crore).
  • Projected Revenue Surplus: ₹8,831.18 crore (0.80% of GSDP).
  • Capital Outlay Proportion: ~20.48% of total state expenditure.
Bihar State Budget 2025-26 - Macro-Fiscal Matrix & Outlays
Figure: Bihar State Budget 2025-26 - Macro-Fiscal Matrix & Outlays
⭐ Key Points
  • Total Budgetary Outlay (2025-26): ₹3,16,895.02 crore (~₹3.17 lakh crore).
  • Projected GSDP: ₹10,97,264 crore (~₹10.97 lakh crore).
  • Targeted Fiscal Deficit: 2.98% of GSDP (₹32,718 crore).
  • Projected Revenue Surplus: ₹8,831.18 crore (0.80% of GSDP).
  • Capital Outlay Proportion: ~20.48% of total state expenditure.
📌 One-line Q&A
  • Total Budgetary Outlay (2025-26): ₹3,16,895.02 crore (~₹3.17 lakh crore).
  • Projected GSDP: ₹10,97,264 crore (~₹10.97 lakh crore).
  • Targeted Fiscal Deficit: 2.98% of GSDP (₹32,718 crore).
  • Projected Revenue Surplus: ₹8,831.18 crore (0.80% of GSDP).
  • Capital Outlay Proportion: ~20.48% of total state expenditure.
Questions 19 MCQs

Answer this question, then use Next.

What was the total outlay of the Bihar State Budget for FY 2025-26 presented in March 2025?

The budget stood at ₹3,16,895.02 crore, an increase of ₹38,169.30 crore over FY 2024-25.

What is the projected Gross State Domestic Product (GSDP) of Bihar at current prices for 2025-26?

GSDP for FY 2025-26 is targeted at ₹10,97,264 crore at current prices.

What is the fiscal deficit target as a percentage of GSDP for Bihar in FY 2025-26?

Fiscal deficit is pegged at ₹32,718.31 crore, which is exactly 2.98% of GSDP.

How much revenue surplus has been projected in the Bihar Budget 2025-26?

The state estimated a revenue surplus of ₹8,831.18 crore (0.80% of GSDP).

Who presented the Bihar State Budget for FY 2025-26 in the Bihar Legislative Assembly?

Finance Minister Samrat Choudhary presented the budget on March 3, 2025.

What is the share of Revenue Expenditure in Bihar's total budget outlay for 2025-26?

Revenue expenditure of ₹2,52,000 crore constitutes 79.52% of total state expenditure.

What proportion of total expenditure in Bihar Budget 2025-26 is earmarked for development expenditure?

Development expenditure is ₹2,06,818.53 crore, accounting for 65.26% of the budget.

Under the 15th Finance Commission, what is the horizontal tax devolution share assigned to Bihar?

Bihar receives 10.058% of the net central divisible pool, second only to Uttar Pradesh.

What is the borrowing target estimated in the Bihar Budget 2025-26?

The budget proposes public borrowings of ₹55,737.79 crore for financing capital works and debt servicing.

Compared to 2005-06 (₹22,568 crore), how many times has the Bihar state budget expanded by 2025-26?

The state budget surged from ₹22,568 crore in 2005-06 to ₹3,16,895 crore in 2025-26 (~14-15 times).

What is the recommended grant proposed for local bodies in 2025-26 under the 6th State Finance Commission?

Under the Sixth State Finance Commission report, ₹7,818.93 crore is earmarked for Panchayats and ULBs.

What was the actual fiscal deficit of Bihar in FY 2023-24 as per accounts presented alongside the budget?

In 2023-24, the actual fiscal deficit stood at 4.17% of GSDP (₹35,660 crore).

What are the total estimated Revenue Receipts for Bihar in FY 2025-26?

Total revenue receipts are budgeted at ₹2,60,831.44 crore.

What was the capital outlay proposed in Bihar Budget 2025-26 dedicated strictly towards asset creation?

Capital outlay for asset creation in 2025-26 is proposed at ₹40,532 crore.

What amount is allocated for public debt repayment (principal) by Bihar in FY 2025-26?

Bihar allocated ₹22,820 crore towards the repayment of past debt obligations.

Under FRBM principles, what is the statutory ceiling on debt-to-GSDP ratio recommended for states like Bihar?

FRBM targets prescribe a state debt-to-GSDP ratio anchored within 30-32%.

What is the committed expenditure (salaries, pensions, interest) estimated in Bihar for 2025-26?

Committed expenditure comprising salaries (₹51.6k cr), pensions (₹33.3k cr), and interest (₹23.0k cr) totals ₹1,08,094 crore.

How much did interest payments alone account for in the Bihar 2025-26 budget estimates?

Interest payments are budgeted at ₹23,014 crore in FY 2025-26.

In which constitutional document are state annual financial statements mandated under Article 202?

Article 202 of the Indian Constitution requires the Governor to lay the annual financial statement before the State Legislature.
Question 1 of 19

One-liners

Write your answer, then submit to see the correct answer.

Total Budgetary Outlay (2025-26): ₹______

Projected GSDP: ₹______

Targeted Fiscal Deficit: ______

2.98% of GSDP (₹32,718 crore).

Projected Revenue Surplus: ₹______

Capital Outlay Proportion: ______

~20.48% of total state expenditure.