Union Finance Minister Nirmala Sitharaman, presenting her eighth consecutive Budget today, announced a series of initiatives aimed at boosting Bihar’s economy, ahead of the state’s crucial elections later this year. In her speech, she emphasised the government’s commitment to ‘Sabka Vikas’ by ensuring balanced regional growth, with Bihar receiving a significant share of attention.

“Our economy is the fastest-growing among all major economies. Our development track record for the past 10 years and structural reforms have drawn global attention. Confidence in India's capability and potential has only grown in this period. We see the next five years as a unique opportunity to realise ‘Sabka Vikas’, stimulating balanced growth of all regions,” Sitharaman said.

Among the key announcements for Bihar, the Finance Minister unveiled plans for a National Institute of Food Technology in the state. This institute aims to boost food processing in eastern India, creating employment opportunities for local youth and enhancing the agro-processing industry.

A major highlight was the establishment of a Makhana Board in Bihar. The board will focus on improving the production, processing, value addition, and marketing of makhana, a key agricultural product of the region. Farmers engaged in makhana cultivation will be organised into Farmer Producer Organisations (FPOs), receiving training and access to government schemes to enhance productivity and profitability.

Further strengthening Bihar’s infrastructure, Sitharaman announced financial support for the Western Kosi Canal Project in the Mithilanchal region. This move aims to improve irrigation facilities and boost agricultural output in the flood-prone areas of north Bihar.

Additionally, as part of a broader initiative to expand higher education, the capacity of the Indian Institute of Technology (IIT) Patna will be increased. This expansion, which includes additional infrastructure for 6,500 more students across five IITs, will bolster Bihar’s standing as a hub for technical education.

The announcements come in the wake of demands made by Bihar Deputy Chief Minister Samrat Choudhary, who had submitted a 32-page memorandum to the Finance Minister ahead of the Budget. Choudhary had sought Rs 13,000 crore in aid for flood management in North Bihar, upgrades for Darbhanga airport, new airports in Rajgir and Bhagalpur, and funding for Raxaul airport. He also pushed for the construction of 10 new Kendriya Vidyalayas, a 1 per cent Gross State Domestic Product (GSDP) relaxation for additional borrowing, and approval of a small modular nuclear reactor, apart from high-speed corridors.

In the previous Union Budget (2024-25), the Centre had allocated Rs 59,000 crore for road connectivity, power, and flood management in Bihar. However, Chief Minister Nitish Kumar had then reiterated the state’s long-standing demand for special category status (SCS) or a special package to accelerate its development.

With these new allocations and initiatives, the Budget 2025 reinforces the government’s intent to address Bihar’s economic challenges while simultaneously catering to its long-term aspirations for industrial growth, infrastructure, and education.