What Bihar Got In Budget 2025? Key Announcements For The State

With Bihar Assembly elections 2025 scheduled for later this year, Union Finance Minister Nirmala Sitharaman on Saturday announced the establishment of a Makhana Board and a food processing institute in the state as part of the Budget 2025-26.

In her speech, which had a strong focus on the agriculture sector, Sitharaman stated that the Makhana Board will provide training and support to farmers while ensuring their access to relevant government schemes.

"Makhana Board to be set up in Bihar. The Board will handhold and train makhana farmers and help them get access to all relevant government schemes," Sitharaman said while presenting the Budget.

She also announced the establishment of an institute for food processing in Bihar, aiming to boost the state's agro-based industries.

Additionally, the Finance Minister revealed plans to expand the capacity of Indian Institute of Technology (IIT) Patna, as part of a broader initiative to upgrade five IITs with additional infrastructure to accommodate 6,500 more students.

Sitharaman also revealed plans for new greenfield airports in Bihar, the development of a brownfield airport in Bihta, and the expansion of Patna airport to enhance the state's air connectivity.

The Western Kosi Canal ERM project in Mithlanchal will get a boost with huge financial aid. This will help in the irrigation of 50,000 hectares in the region.

The Western Kosi Canal Project, initiated under the Accelerated Irrigation Benefit Programme in Bihar, was first approved in 1962 and officially sanctioned for execution in 1971. The project involves the construction of a 91.83 km main canal and aims to provide irrigation to the Madhubani and Darbhanga districts of Bihar.

Tourism Boost for Gaya Finance Minister Nirmala Sitharaman also mentioned plans to boost tourism in Bihar's Gaya, emphasizing the importance of locations with spiritual and religious significance. "Continuing with the focus on sacred destinations, the July Budget will highlight destinations linked to the life and teachings of Lord Buddha," she said.

Bihar Seeks More Central Support

Ahead of the Budget, Bihar Deputy Chief Minister Samrat Choudhary had submitted a 32-page memorandum to Sitharaman, requesting Rs 13,000 crore in aid for:

• Flood management in North Bihar
• Upgrading Darbhanga airport
• New airports in Rajgir and Bhagalpur
• Funding for Raxaul airport
• Construction of 10 new Kendriya Vidyalayas
• Relaxation of 1% in Gross State Domestic Product (GSDP) borrowing limit
• Approval for a small modular nuclear reactor
• Development of high-speed corridors

In the Union Budget 2024-25, Bihar was allocated Rs 59,000 crore for road connectivity, power, and flood management. However, Chief Minister Nitish Kumar had then reiterated the demand for special category status (SCS) or a special financial package for the state.