Bihar Budget 2021-22 Highlights

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Bihar Budget (2021-22) Highlights: The Finance Minister of Bihar, Mr. Tarkishore Prasad, presented the Budget for the state for the financial year 2021-22 on February 22, 2021.  Due to the impact of COVID-19, 2020-21 was not a standard year with respect to the performance of the economy and government finances.  In this note, 2021-22 budget estimates have been compared to the actuals for 2019-20 (in terms of compounded annual growth rate or CAGR).  A comparison of the revised estimates for 2020-21 and budget estimates for 2021-22 has been provided in the Annexure.

Here, we are giving the complete study material of ‘Bihar Budget (2021-22) Highlights’ that will ease the journey of aspirants to crack the competitive examinations like BPSC and other state-level examinations.

Bihar Budget (2021-22) Highlights

The Finance Minister of Bihar Mr Tarakishore Prasad had presented the Budget for Bihar for the financial year 2021-22. The 2021-22 budget amount is Rs 2,18,303 crore (more than Rs. 6,542 crores of FY 2020-21) which makes it the biggest budget in the history of Bihar.

Constitutional Provision of Budget for State

  • As per Article 202 of the Constitution of India, the Governor of a State shall cause to be laid before the House or Houses of the Legislature of the State a statement of the estimated receipts and expenditure of the State for a financial year. 
  • This estimated statement of receipt and expenditure for a financial year named in the Constitution as the “Annual Financial Statement” is usually referred to as “Budget”.

Key Terms Used in Budget

Revenue which includes:

  • Revenue Receipt 
  • Revenue Expenditure

Revenue Receipt:

  • The receipts received can’t be recovered by the government.
  • It comprises income amassed by the Govt. through taxes and non-tax sources like dividends on investments and interest.

Revenue Expenditure:

  • These are the expenditure incurred by the State Government for purposes other than for the creation of physical or financial assets.
  • It includes those expenditures incurred for the usual functioning of the government departments, grants given to state government includes borrowings from the Reserve Bank of India and commercial banks and other financial institutions.
  • It also consists of loans received from foreign governments and world organizations and repayment of loans granted by the Union government.

THE Capital which includes 

  • Capital Receipt 
  • Capital Expenditure

Capital Receipt: These are the receipts that generate liability or decrease the financial assets of the government which

THE Capital Expenditure

  • It is the spending incurred by the government which results in the formation of physical or financial possessions of the Union government or a decrease in financial liabilities of the Union Government.
  • It will contain expenditure on procuring land, equipment, infrastructure, expenditure in shares.
  • It also includes mortgages by the Union government to Public Sector Undertakings, state and union territories government and interest payments on the debt of the Union Government, etc.

Direct Tax: These are the taxes which are imposed directly on individual and company. It comprises

  • Income tax 
  • Corporation tax

Indirect Tax: These are the axes that are imposed on goods and services. It comprises taxes like 

  • Service tax
  • Excise taxes
  • Customs duties

Fiscal Policy: Fiscal policy is the means by which a government adjusts its expenditure levels and tax rates to watch and influence a country’s economy.

Revenue Deficit: It is the extra expenditure of the government over revenue receipts.

Fiscal Deficit: It is the difference between the total expenditure of the government and its total receipts, which is not including the borrowing.

Primary Deficit: Primary deficit refers to the difference between the present year’s fiscal deficit and interest payment on previous borrowings.

Non-Tax Revenue: These are the government revenue not generated from taxes.

Gross Domestic Product (GDP):

  • It is the price value of all finished goods and services made within a country during a specific period. 
  • It provides a snapshot of a country, used to estimate the size of an economy and growth rate. 

Highlights of the Budget: 

Gross State Domestic Product

  • The fiscal deficit for FY22 is estimated at Rs 22,510. 78 crore.
  • It is 2.97 % of the estimated Gross State Domestic Product (GSDP).
  • There is a modest increase of Rs. 6,541. 21 crore or 2.97 % over FY21 Budget size


  • Rs 1,77,071.39 crore as revenue expenditure while Rs 41,231.31 crore is capital account.

Total receipts

  • The total receipts are estimated at Rs 2,18,502.70 lakh crore, which includes 
    • Rs 1,86,267.29 crore by way of revenue receipts and 
    • Rs. 91,180.60 would be the state’s share in central taxes
    • Rs 32,235.41 crore by way of capital receipts.
    • Rs. 35,050.00 crores for the government’s own tax revenue.

Revenue Savings

  • It is estimated to be Rs. 9,195.90 crore.

New Scheme / Policy in Budget 2021-2022

  • Saat Nishchay Scheme- Under this scheme, the state government will emphasize upon social welfare, public health, women security, employment generation etc. The major achievements should be-
    • आर्थिक हल, युवाओ को बल
    • आरक्षित रोजगार, महिलाओं का अधिकार
    • हर घर नल का जल
    • घर तक पक्की गलियाँ, नालियाँ
    • सौचालय निर्माण- घर का सम्मान
    • अवसर बढें, आगे बढें
  • Nishchay- 2 Scheme under Good Governance in Bihar- The budget allocation for FY 2021-22 should be Rs. 4671 crore. The major aim should be
    • युवा शक्ति, बिहार की प्रगति
    • सशक्त महिला, सक्षम महिला
    • हर खेत तक सिंचाई का पानी
    • स्वच्छ गाँव- समृद्ध गाँव
    • स्वच्छ शहर- विकसित शहर
    • सुलभ संपर्कता
    • सबके लिए अतिरिक्त स्वास्थ्य सुविधा 

Sector-wise expenditure

Agriculture and allied activities

  • Agriculture and Allied Activities (in 2021-22): Total Rs. 3335.47 crore has been allocated for agricultural development. Rs. 50 crore has been proposed to implement Har Khet tak Sinchayi ka pani across the state.
  • Rs. 300 crores are proposed for the Electricity Department.
  • Rs. 4074.38 crores have been allocated for the Water Resources Department.
  • Rs. 1561.72 crores have been allocated for Animal and Fisheries resources.
  • The Organic Corridor will be established across the 13 districts of the state on the banks of the Ganga river.
  • Rs. 1534.09 crores for Cooperative Department.

Medical and Health Infrastructure

  • Rs. 400 crores have been allocated for Public Health Services.
  • Rs. 300 crores for Bal Hriday Yojana and other health schemes.


  • Rs. 110 crores has been allocated for the establishment of the Skill Development and Entrepreneurship Department along with Medical and Engineering Universities in Bihar.
  • The Centre of Excellence will be established in all ITIs.
  • International Cricket Stadium and Sports Academy along with Sports University will be established in Rajgir.
  • To promote entrepreneurship in the state Rs. 200 crores has been allocated.
  • Rs. 600 crores for Women Higher Education and Rs. 200 crores for Women Entrepreneurship.

Environment Sector

  • The 2nd zoo of Bihar will be opened in Araria by 2021.
  • Total budget allocation- Rs. 737.75 crore.

Manufacturing/ Industrial Sector

  • The total budget allocation will be Rs. 1285.17 which is more than Rs. 40.33 crore of last year.

Rural and Urban Development

  • Total budget allocation- Rs. 16835.67 crore
  • Rs 400 crore has been allocated for the disposal of solid waste in cities across the state, under which a Storm Water Drainage System will also be developed.
  • Rs. 250 crores for Rural Works Department.
  • Rs. 200 crores for the construction of Bypass and Flyovers across the state.
  • For other various schemes like housing for all, Shyama Prasad Mukherji Rurban Mission Rs. 7767.13 crore has been allocated.
    • RiverFront Projects will be implemented in Patna, Begusarai, Chhapra, Bhagalpur, Ara, Buxar, Hazipur, etc.
    • Patna Metro Rail whose total length is 32.497 km will be completed by 2024 at the total cost of Rs. 11165.96 crore.  

Health and Family Welfare

  • The government has allocated Rs. 400 crore for Public Health Services.

Social Security and Welfare

  • For the betterment of Old and Elderly people in the state, Rs. 90 crore has been allocated for the Social Welfare department.
  • Total Budget allocation for Social Welfare department- Rs. 8159.15 crore.
  • Total Budget allocation for BC and EBC welfare department- Rs. 1749.44 crore.
  • Total Budget allocation for SC and ST welfare department- Rs. 1803.28 crore.
  • Total Budget allocation for minority welfare department- Rs.562.63 crore


  • Rs. 550 crores have been allocated under the Nishchay-2 scheme.


  • Mahabodhi Cultural Centre will be established in Bodh Gaya for the total cost of Rs. 145 crore.
  • Buddha Samyak Darshan Museum will be established in Patna.
  • APJ Abdul Kalam Science City is going to be established in Patna.

Panchayati Raj

  • Rajya Panchayat Sansadhan Kendra will be established.
  • Rs. 9544.93 crores has been allocated for the Panchayati Raj department.
  • Under Lohia Swacchhta Yojana-2, Rs. 50 crore has been allocated for sanitation in rural areas.

Some Important Questions

  1. The size of Bihar Budget 2021-22 is

Ans. Rs 2,18,303 crore

  1. In which district of Bihar the APJ Abdul Kalam Science City will be established?

Ans. Patna

  1. What is the budget allocation for Mukhyamantri Yuva Swarojgar Scheme?

Ans. Rs. 100 crores

  1. 2nd zoo of Bihar will be opened in

Ans. Araria district

  1. The budget allocation for Vishwakarma Shram Samman Yojana is

Ans. Rs. 30 crores

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