For Budget 2026-27, Bihar's Big Demand: Special Package for Flood Relief and Strong Plea for Rs 1 Lakh Crore Interest-Free Loan

Patna (ABN) Bihar Finance Minister Bijendra Prasad Yadav presented the state's development priorities to Union Finance Minister Nirmala Sitharaman during the pre-budget consultative meeting on January 10, 2026. He expressed confidence that Bihar's perspective would be meaningfully incorporated in the upcoming national budget, enabling the state to reach the average. To strengthen the state's infrastructure, Bihar has requested the central government to enhance the interest-free long-term loan facility. The Finance Minister strongly advocated for increasing the loan facility for Bihar from the current limit to ₹1.00 lakh crore. This assistance would give the state the authority to prioritize high-impact projects. Bihar prominently raised the issue of devastating damage caused by rivers such as Kosi, Gandak, and Bagmati originating from Nepal. The state has demanded that the central budget 2026-27 provide a dedicated relief and disaster-resilient package for Bihar. This includes proposals for satellite-based forecasting, river interlinking, and a special focus on scientific flood management. The Finance Minister expressed concern over the growing imbalance in the distribution of cess and surcharge among states. He emphasized that cess and surcharges should be brought under a divisible pool so that states like Bihar can get their fair and constitutional share in the country's total tax revenue. Despite Bihar's robust growth rate (13.09% in 2024-25), the state requires additional capital due to geographical disadvantages. To this end, the central government has been requested to allow Bihar to borrow an additional 2.0% of its Gross State Domestic Product (GSDP) until the state's per capita income reaches the national average. Bihar has expressed the need for centrally sponsored schemes to transform traditional agriculture into high-yielding agricultural business models. The state has stressed the adoption of new technologies such as AI, drones, and blockchain. It has also sought central assistance for the establishment of a Makana Board for the makhana industry and the setting up of food processing units. Referring to Bihar's abundant water resources and availability of skilled labor, the Finance Minister requested the central government to consider setting up industries in the state. He said that industrial development would not only enable Bihar to achieve balanced development but also strengthen its contribution to the national economy by generating new employment opportunities.