Bihar finances under strain over surging debt, poor fiscal management: Tejashwi Yadav

Patna, Aug 21 (IANS) The fiscal condition of Bihar has come under sharp criticism, with the Opposition alleging that the state is facing a severe financial crisis marked by rising debt, a widening fiscal deficit, and mounting pressure on government expenditure.

Tejashwi Yadav, the leader of the opposition in the Bihar Assembly and Rashtriya Janata Dal leader, stated that Bihar’s total public debt has increased more than fourfold over the years, while the state’s financial position has deteriorated to such an extent that funds are reportedly becoming difficult to arrange for social security pensions, payments to government employees and pensioners, dues owed to contractors, and various development projects.

He also raised concerns over the alleged reduction in funds available under the Bihar Student Credit Card Scheme and the discontinuation of scholarships, arguing that such measures could adversely affect students and young people.

It has further questioned the government’s fiscal management, alleging that the National Democratic Alliance (NDA) government lacks a long-term strategy to increase the state’s own revenue, improve tax collection, manage expenditure, and contain the fiscal deficit.

The Opposition has cited Bihar’s reported 5.8 per cent fiscal deficit-to-GSDP ratio in 2025-26, describing it as the highest among India’s major states.

It argued that the combination of a high fiscal deficit and growing debt is particularly concerning for a state whose own revenue generation remains relatively limited compared with its expenditure requirements.

“The government has also been accused of taking on substantial additional debt over the past two years without producing a corresponding improvement in the state’s financial position,” he alleged in a post on his official X handle on Friday.

He questioned where the borrowed funds are being utilised and demanded greater transparency in government expenditure and financial management.

In a strongly worded political attack, he alleged that corruption and mismanagement have contributed to Bihar’s deteriorating fiscal position.

He accused the Bharatiya Janata Party-led NDA government of failing to safeguard the state’s financial interests and warned that continued borrowing without strengthening revenue generation could place an increasing burden on future generations.

The opposition leader maintained that Bihar’s worsening fiscal indicators should be treated as a matter of collective concern and called for greater accountability, transparency, improved revenue mobilisation, and disciplined expenditure management.

— IANS

ajk/snj/mr