Union Budget 2026-27: Bihar Strongly Demands Additional Borrowing Limit, Inclusion of Cess in Divisible Pool, and Special Flood Relief Package

In a pre-budget consultation meeting for the upcoming Union Budget 2026-27, chaired by the Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, in New Delhi, the Hon'ble Finance Minister of Bihar, Shri Bijendra Prasad Yadav, strongly advocated for the state's interests. The meeting was also attended by the Additional Chief Secretary of the Finance Department, Bihar, Shri Anand Kishore, along with the Hon'ble Chief Ministers and Finance Ministers of various states.

During the meeting, the following key points were brought to the attention of the Central Government by Bihar:

1. Fiscal Imbalance: Demand for Inclusion of Cess and Surcharge in the Divisible Pool

The Hon'ble Finance Minister stated that the share of cesses and surcharges in the total tax revenue has increased from 10.4% in 2011-12 to 13.6% now. Since these are not part of the divisible pool of the Central Government, states like Bihar are losing their constitutional share. He strongly demanded that these be brought under the purview of the divisible pool.

2. Permission for Additional Borrowing Limit

To bring Bihar's per capita income at par with the national average, the state has demanded an additional borrowing limit of 2.0% of the Gross State Domestic Product (GSDP). This facility has been requested in addition to the existing annual limit of 3%, so that the state can overcome its geographical and historical challenges and increase infrastructure investment.

3. 'Special Package' for Flood Disaster Mitigation and River Interlinking Project

To prevent the devastating floods caused by rivers like Kosi, Gandak, and Bagmati in North Bihar, the Hon'ble Minister requested a 'Relief and Disaster Resilient Package'. This package emphasizes modern technologies such as satellite forecasting, GIS mapping, and real-time monitoring. Furthermore, an appeal was made to prioritize the 'Interlinking of Rivers' project as a permanent solution to floods and droughts.

4. Modern Technology in Agriculture and Industrial Development

The need for centrally sponsored schemes based on new technologies such as AI, drones, and blockchain in the agricultural sector was emphasized to generate employment in the state. Additionally, given Bihar's abundant water resources and availability of skilled labor, special support was requested for the establishment of new industries in the state to ensure balanced regional development.

The Honorable Finance Minister submitted a detailed memorandum concerning Bihar's development to the Union Finance Minister and expressed confidence that these legitimate demands of Bihar would be given positive consideration in the upcoming budget.