Budget 2026 raises big hopes for Bihar:Nitish govt seeks higher loans, jobs, industry, agriculture, and infrastructure support from centre

Union Finance Minister Nirmala Sitharaman is presenting the Union Budget for the financial year 2026–27 today. For the first time since 2010, the NDA has secured more than 200 seats (202) in Bihar. In this context, expectations from the Union Budget are particularly high for the state this year. On one hand, Chief Minister Nitish Kumar has repeatedly reiterated his promise to provide jobs or employment to one crore people over the next five years. On the other hand, the government continues to announce populist schemes. Alongside this, Bihar is looking towards the Centre for support in developing everything from industry to infrastructure. Given this backdrop, it is expected that fresh announcements could be made this time in the industrial sector, as well as regarding the funds Bihar may receive. New announcements related to airports, expressways, highways and railways for Bihar are also anticipated. Hope for Higher loan limit and Interest-free support Bihar Finance Minister Bijendra Yadav has urged the Centre to increase the limit of the 50-year interest-free loan for capital expenditure to ₹1 lakh crore. This, he said, would help the state undertake major infrastructure projects such as large bridges, roads and power plants. At present, the state government is permitted to borrow around 3 per cent of its existing Gross State Domestic Product (GSDP). Bihar has demanded that this limit be raised to 5 per cent, allowing the state greater financial flexibility to accelerate development works. State plans to borrow ₹80,000 crore The Bihar government is planning to borrow around ₹80,000 crore. Initially, it had considered borrowing nearly ₹1 lakh crore through the open market and other sources. However, due to concerns over a sharp rise in the fiscal deficit, the borrowing amount is likely to be curtailed. Even with borrowing of around ₹80,000 crore, there are apprehensions that the fiscal deficit could still exceed the prescribed upper limit of 3 per cent. Focus on Industry and modern agriculture Employment generation remains a key priority for the Nitish Kumar government, particularly its commitment to providing one crore jobs or employment opportunities. In view of this, the Bihar government has sought the Centre’s support for setting up industries in the state through this year’s Union Budget. The state government has argued that Bihar has ample water resources and a large pool of skilled labour. Taking these factors into account, it has requested the Union Finance Minister to assist in establishing new industries in the state and to provide a separate industrial package for Bihar. Demand for technology-driven farming Bihar also sees significant potential in the agriculture sector. With this in mind, the Nitish government has asked the Centre to support the modernisation of agriculture as a means of employment generation. The state has demanded centrally sponsored schemes that promote the use of advanced technologies such as artificial intelligence, drones and blockchain in agriculture, intending to improve productivity and create new job opportunities across rural areas.