Bihar is the envy of other states. It scooped up a bonanza in Budget 2025. That it was going to be a Bihar-focused budget was hinted by the Madhubani-style fish motifs on the cream-coloured sari worn by Union Finance Minister Nirmala Sitharaman as she came to Parliament on February 1. Fish motifs are integral to the art form originating from the Mithila region of Bihar. The sari was a gift from artist Dulari Devi, a Padma Shri awardee.
Bihar and its regions were mentioned eight times in Nirmala Sitharaman's speech. Not just Bihar, the Budget went an extra mile to reel in Bihari voters in Delhi too. Delhi votes on Wednesday (February 5), long before Bihar holds an election in November.
A big pie for Bihar
Budget 2025 has given a major impetus to Bihar's growth prospects with the announcement of new greenfield airports, a Makhana Board, a National Institute of Food Technology, the expansion of IIT-Patna, promotion of tourism around key Buddhist centres, and support for the Western Kosi canal.
These initiatives aim to enhance the state's infrastructure, improve connectivity, and support the local economy, especially benefiting farmers and businesses involved in makhana production.
This is the second consecutive Budget full of sops for Bihar. Last year, Bihar was rewarded as Nitish Kumar helped in the formation of Prime Minister Narendra Modi's third government after the BJP fell short of a majority.
Last year, a stack of development projects FOR BIHAR, worth around Rs 58,900 crore, was announced in the Budget. It included a 2,400 MW power plant and flood management projects. Plans to develop highways, expressways, expansion and maintenance of existing roads were also announced.
Yet both state and national highways in Bihar remain in a poor condition, needing significant restoration.
A comprehensive investment in the road network would facilitate smoother freight transport for industrial and agricultural produce. It will also spur growth in both industrial and agricultural sectors, ultimately enhancing employment opportunities and benefiting Bihar's economy.
Bihar produces almost 85-90% of India's makhana (lotus seeds or foxnuts) and the move is expected to benefit farmers of the Mithilanchal region including districts such as Madhubani, Darbhanga, Sitamarhi, Samastipur, Purnea, and Katihar. Makhanas are currently processed and packed outside the state.
More than a million farmers - many from EBCs (extremely backward classes) - are involved in makhana cultivation. The JD(U)-BJP coalition performed well in these regions in the 2020 Bihar election.
Since this region is the NDA's stronghold, special focus can help the NDA alliance in electoral consolidation.
Similarly, the Western Kosi Canal project will supposedly help farmers cultivate some land in the Mithilanchal region, which is plagued by recurrent floods and drought. This could transform the state's agriculture, leading to economic stability.
The infrastructural push for greenfield airports is aimed at promoting the Buddhist tourism circuit in the NDA-ruled state. The budget proposal also includes the development of important sites like the Vishnupad Temple, Mahabodhi Temple and Nalanda.
However, Bihar still needs more investment in infrastructure and flood management.
A National Institute of Food Technology, Entrepreneurship, and Management will boost food processing activities relating to makhana and other food products not only in Bihar but in the entire eastern region of India. The skill development and entrepreneurship training programmes are expected to generate new employment opportunities for the youth of the region.
Look East
The development of eastern India has taken precedence this time also. The empowerment of the eastern part of the country is a key component of PM Narendra Modi's vision for India's overall empowerment. Bihar continues to lag behind its western and southern counterparts in terms of development.
By allocating key financial resources to eastern states, the Government has sought to balance regional development.
Bihar remains relentlessly impoverished and is at the bottom of economic development indices. It has 9% of India's population but only 2.9% of its land area. With a per capita GDP of approximately Rs 54,000, Bihar remains one of India's poorest states.
Bihar largely remains a rural state with only 11% of the population living in urban areas. Dependence on agriculture, construction and non-tradable services - all low-productivity sectors - account for the bulk of its GDP and employment.
Consequently, the state government has to rely on central assistance to power its infrastructure work as well as welfare and development programmes.
Whether these promises translate into reality or remain political rhetoric will depend on the implementation. In the past, big packages announced for the state haven't materialised. Simultaneously, the state government too failed to use the funds allotted, and returned the unutilised funds.
In the coming days, one expects the Centre and the Bihar government to restart sugar mills that have been shut for years. The state needs industry, better facilities for education and health and a major push for its small and marginal farmers.
Trains through Bihar are overcrowded. So, Bihar needs more trains, fast and affordable ones, for the large migrant population that returns home during the peak festival seasons of Holi, Durga Puja, Diwali and Chhath.
The sops given to Bihar may also be music to the ears of Biharis living in Delhi, whom the BJP has been luring as part of its Purvanchali outreach before the Delhi election.
After all, the budget is as much a political as an economic exercise.
(The author is Contributing Editor, NDTV)
Disclaimer: These are the personal opinions of the author
