The Giveaway Frenzy
Bihar’s assembly election 2025 is turning into a battle of the benefactors, with both the NDA and Mahagathbandhan unleashing a torrent of sops that could drain nearly half the state’s Rs 3.17 lakh crore budget. From Rs 10,000 grants to 1.21 crore women under NDA’s Mukhyamantri Mahila Rojgar Yojana to the opposition’s audacious pledge of one government job per family, the promises are as ambitious as they are expensive. With the model code kicking in, the question looms: Can Bihar, already grappling with low per capita income and high unemployment, foot this bill without buckling?
Table of Contents
- The Sop Showdown
- Budget Under Siege
- Bihar’s Economic Reality Check
- Expert Warnings and Alternatives
- FAQs
- A Path Beyond Promises
The Sop Showdown
The NDA, led by Nitish Kumar, has rolled out a barrage of welfare measures in the lead-up to the polls. Highlights include 125 MW free electricity for 1.89 lakh consumers (Rs 5,000 crore annually), pension hikes from Rs 400 to Rs 1,100 for 1 crore beneficiaries (Rs 9,300 crore), Rs 1,000 monthly aid for 12 lakh unemployed youth (Rs 1,500 crore), and Rs 5,000 clothing allowance for 16 lakh construction workers (Rs 800 crore). The crown jewel: Rs 12,100 crore transferred to 1.21 crore women for entrepreneurship.
The Mahagathbandhan, spearheaded by Tejashwi Yadav, counters with a blockbuster: one government job per family without one, potentially costing Rs 90,000 crore yearly at Rs 30,000 average salary. This targets Bihar’s 2.76 crore families, where 26.5 lakh already hold government posts.
Table: Major Poll Promises and Costs
| Promise | Alliance | Annual Cost (Rs Cr) | Beneficiaries |
|---|---|---|---|
| Women Grant (Rs 10,000) | NDA | 12,100 | 1.21 Cr Women |
| Pension Hike | NDA | 9,300 | 1 Cr Elderly |
| Youth Allowance | NDA | 1,500 | 12 Lakh Youth |
| One Job Per Family | MGB | 90,000 | 2.5 Cr Families |
Budget Under Siege
Bihar’s Rs 3.17 lakh crore budget for 2025-26 allocates over a third (Rs 1.12 lakh crore) to salaries and pensions alone. The NDA’s sops could gobble another Rs 40,000 crore, leaving scant room for infrastructure or health. The opposition’s job pledge? It would balloon the salary bill exponentially, crowding out essentials. With annual borrowings averaging Rs 25,000 crore and debt at Rs 3 lakh crore, fiscal deficit targets (3% of GSDP) hang by a thread.
Experts like Surya Bhushan from DMI call these “financially insurmountable,” warning of doubled budgets and tax hikes. Deepak Kumar from ADRI notes the informal workforce (90%) and agriculture dependency (50% jobs) make such promises unsustainable without diversification.
Bihar’s Economic Reality Check
Bihar’s woes run deep: per capita income at Rs 66,828 (lowest nationally), youth unemployment at 10.8%, and dropout rates soaring to 25.9% in upper primary. The 2022-23 caste survey reveals 34% families earn below Rs 6,000 monthly, with 30% between Rs 6,000-10,000. LFPR hovers at 43-55%, below national averages, while agriculture employs half the workforce amid stagnant growth.
The state’s BIMARU tag lingers, with per capita income one-third the national average. Despite 9.2% GSDP growth in 2023-24 (third nationally), inequality persists—Patna’s Rs 1.31 lakh vs Sheohar’s Rs 19,592.
Expert Warnings and Alternatives
Economists urge caution: Doles risk debt spirals and inflation, per Bhushan. Kumar suggests focusing on formal jobs and skills over handouts. Alternatives include industrial corridors and digital upskilling to boost formal employment and reduce migration.
Example: Gujarat’s model—targeted incentives—lifted per capita income 20% above national average; Bihar could adapt for balanced growth.
FAQs
- Total sop cost? NDA’s Rs 40,000 Cr; MGB’s Rs 90,000 Cr annually.
- Budget allocation? Rs 3.17 lakh Cr, 1/3 on salaries/pensions.
- Per capita income? Rs 66,828, lowest in India.
- Unemployment rate? 9.9-10.8% for youth.
- Sustainability? Experts say no—risks debt and tax hikes.
A Path Beyond Promises
Bihar’s election is a fiscal tightrope: grand sops dazzle voters but strain a fragile economy. True progress lies in sustainable growth—skills, infrastructure, and jobs—not short-term giveaways. As November 6 nears, the state must choose between electoral highs and long-term health.
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