Budget Highlights

The Finance Minister, Mr. Sushil Kumar Modi, presented the Budget for Bihar for the financial year 2020-21 on February 25, 2020.

Mr. Sushil Kumar Modi presented the budget of Bihar 11th times as a Finance Minister.

• The Gross State Domestic Product of Bihar for 2020-21 (at current prices) is projected to be Rs 6,85,797 crore.
• Compared to 2019-20 this is 11.1% higher than the revised estimate.
• GSDP for 2019-20 (at current prices) is estimated to be 19.6% higher than that in 2018-19.
• Total expenditure for 2020-21 is estimated to be Rs 2,11,761 crore.
• This is a 2.8% decrease over the revised estimates of 2019-20.
• In 2019-20, total expenditure is estimated to increase by 8.6% (Rs 17,259 crore) from the budget estimates.
• Total receipts (excluding borrowings) for 2020-21 are estimated to be Rs 1,84,352 crore.
• It is an increase of 21.5% as compared to the revised estimate of 2019-20.
• In 2019-20, total receipts (excluding borrowings) are estimated to fall short of the budgeted estimate by Rs 25,415 crore (14.3% of the budgeted estimate).
• Revenue surplus for 2020-21 is targeted at Rs 19,173 crore or 2.8% of the Gross State Domestic Product (GSDP).
• Fiscal deficit is targeted at Rs 20,374 crore (2.97% of GSDP).
• In 2019-20, Bihar is estimated to observe a revenue deficit (3% of GSDP) as against a budget target of revenue surplus (3.8% of GSDP).
• Fiscal deficit is estimated to rise from the budgeted 2.8% of GSDP to 9.5% of GSDP at the revised stage.
• In 2020-21, the highest increase in allocations was observed in Water Supply, Sanitation, Housing and Urban Development (8%), police (6%), and irrigation and flood control (6%) sectors over the revised estimates of the previous year.
• Significant decrease in allocation was observed in Energy (48%) and transport (19%) sectors.