Datanomics: Resource crunch remains major concern in Bihar's finances

Weak tax collections in October pushed Bihar's fiscal deficit to three times the FY26 budget estimate in seven months, with pre-poll spending adding pressure

A meagre tax collection in October has widened Bihar’s fiscal deficit to three times of the Budget Estimates (BE) for the first seven months of 2025-26 (FY26). The ₹10,000 crore transferred to women beneficiaries ahead of the Assembly polls is also a contributing factor in this, but low capital outlay due to the model code of conduct (MCC) being in place during October eased the outgo on cash dole-outs to an extent.

 

Shaky financials

 

While the fiscal deficit in the first seven months of FY26 as percentage of BE has zoomed the most in the last seven years, revenue deficit