After the huge mandate received by the National Democratic Alliance (NDA) in the Bihar 2025 assembly elections, it is quite natural for any government to be prepared for a high tide of expectations.
In Bihar, people’s expectations are very high as the election is decided based on a flood of promises from the current Nitish Kumar government that has been in power for almost 20 years – a record for any NDA government in India. Now, the same government will have to ensure that it fulfills its promise of taking Bihar to the category of developed states and repays the people for their continued trust.
On the page of election verdict there was a writing in bold letters: Bihar has voted for the development of the new generation in the state so that people are not forced to migrate to other states for their livelihood. This seems like a tough task for the present Nitish led NDA government as it is starting its new innings with the beginning of the new year.
next phase development
Since 2005, when Nitish Kumar took the reins of Bihar, the state has achieved remarkable infrastructural development and ensured basic amenities like roads, bridges, electricity, which were missing earlier. But now people are waiting for the next level of development in the form of large-scale industrialization to create employment opportunities which can stop migration.
Apart from central institutions, which have come up in good numbers in the last decade in the state, Bihar’s track record in building state institutions has been a matter of concern.
“There is great expectation that the government will attempt to reform the education sector, especially higher education, which has failed to deliver and now has its echo in school education with concerns over the quality of graduates appointed as teachers and dependence on retired babus for extended periods in most departments. All state universities are in poor shape and have been unable to catch up with reforms, while controversies abound. If universities miss the massive reforms envisioned in the New Education Policy (NEP), it It may become a question of survival and relevance for them,” said Vijay Kumar, BBA teacher, Bihar University.
High growth, low HDI
Despite registering consistently high growth rates and a 15-fold increase in budget size since 2005, the reality is that Bihar remains a poor state, lagging behind in the Human Development Index (HDI). According to the 2022 data, it was last ranked 27th, reflecting challenges in health, education and income sectors.
The dismal performance in the social, health and economic sectors requires targeted intervention through investment in human capital, industrial development and education reforms. Bihar’s per capita income is also the lowest in India, with the latest projections by the end of 2025 being around from 69,321 70,000, which is much lower than the national average. This is also a major reason behind large-scale migration.
The CAG of India for the year 2023-24 also warned that the increase in Bihar’s public debt-GSDP ratio from 25.47% in 2019-20 to 32.78% in 2023-24 indicates a risk to debt stabilization. The report also highlights that within non-committed expenditure, there was an increasing trend of subsidies, which increased Rs 7,121.27 crore in 2019-2020 ₹ 16,244.61 crore in 2023-24 i.e. increase from 5.65% of total revenue expenditure in 2019-20 to 8.53% in 2023-24. It is sure to rise further due to election-induced announcements.
The implementation of the Eighth Pay Commission will also have an impact sooner or later.
“Real growth is inclusive growth, not islands of progress and after two decades in power the state cannot sit comfortably by comparisons with the past. It will have to compete with other states in the era of competitive federalism. Bihar needs policies and programs to restore the confidence of the people by tackling the twin issues of unemployment and migration,” said DM Diwakar, former director of AN Sinha Institute of Social Sciences.
positive construction
In a clear indication of the importance of the Bihar elections for the BJP-led central government, the year started with an encouraging sign: a special mention of Bihar in the Union Budget by Finance Minister Nirmala Sitharaman, who chose to wear a silk sari adorned with intricate Madhubani artwork during her Union Budget 2025 presentation. Beyond symbolism, the budget speech announced several projects for Bihar after a long time. Establishment of Makhana Board, capacity expansion of Patna airport, development of a brownfield airport at Bihta, a National Institute of Food Technology, entrepreneurship, infrastructure and flood mitigation projects, religious tourism proposed under the Purvodaya initiative to accelerate the development of Eastern India. Now all eyes will be on implementation.
Matching the Centre’s approach was Chief Minister Nitish Kumar’s pre-poll visit, which prompted a significant redistribution of funds to accelerate projects, sparking a sudden flood of freebies. These include free electricity, a long-pending increase in old-age pensions and direct cash transfers to a large section of the population. Such measures were uncharacteristic of Nitish Kumar, who had previously opposed populist giveaways and emphasized long-term development during his first term as CM.
Experts say that the obvious freebies before the elections are expected to end. 40,000 crore, this figure is absent from the state budget for the year. Moreover, he says, large-scale recruitment in government jobs has led to a sharp increase in salary expenditure, which is now estimated to be more than 50,000 crore in the current financial year. As a result the government was forced to present an unprecedented supplementary budget 90,000 crore without specifying additional sources of revenue. As a result, while the government’s promised expenditure has exceeded Estimated receipts remain around Rs 4 lakh crore 3 lakh crores. Given the constraints of the FRBM Act, which caps the fiscal deficit at 3%, such a gap mandates a restructuring of its expenditure priorities. Therefore, revenue generation to meet the additional costs will also be a challenge, as experts warn that free things are never free for voters and the burden may fall on those who are not beneficiaries.
initial intention
Aware of the heavy weight of mandate-driven expectations, the government has wasted no time in laying out the third edition of its 7-resolution program to lay out the broad outline of its policies to take Bihar forward by doubling employment and income, promoting industries and agriculture, and improving quality education and accessible healthcare, but the real test will be in the implementation. The CM also met Prime Minister Narendra Modi and Home Minister Amit Shah as the Centre’s continued support will be crucial in how resource-starved Bihar progresses. The intention is positive, but the results will determine its true value.
One of the key elements will be how the Chief Minister Mahila Rozgar Yojana progresses. Before the elections, Giving Rs 10,000 to an unemployed woman sparked controversy as the opposition termed it a ‘cash for vote’ game changer initiative. However, the government has portrayed this as an extension of its continuing policy for women empowerment and all eyes will be on how it promotes entrepreneurship to create employment opportunities, as it is not possible to provide government jobs on such a large scale. The operational framework of the scheme will be important to achieve the desired goals with such a large investment.
In the second phase, the beneficiaries of this scheme will get assistance up to Rs 20 thousand. 2 lakhs after assessment to expand their employment. The CM also mentioned the caste-based socio-economic survey conducted in 2023, in which 94 lakh poor families were identified and said they would be given priority in employment schemes. The government aims to create jobs and employment opportunities for 10 million youth in the next five years in keeping with its pre-poll promise and this will require avenues and environment for industries and investments, especially in high-potential food processing and IT sectors.
Jobs and Investment
There are indications of recruitment to about one lakh vacant posts in various departments in the government sector in the first year itself, but this will not be enough. aim to ensure at least Private investment of Rs 50 lakh crore has also been earmarked in the state in the next five years and it is expected that this will be visible on the ground. It is good to see that Bihar Chief Secretary Pratyaya Amrit is leading from the front without delay in removing the barriers to building trust with his weekly “Industry Talks”.
With about 58% of the population below 25 years of age, Bihar needs to focus on this huge demographic dividend beyond votes, otherwise it has the potential to create a demographic disaster beyond the elections. For them, jobs and education are the keys to staying relevant to modern needs. Since the last two elections, unemployment and migration have been major issues and the government has been working on it with regular recruitment drives, but a lot still needs to be done, as people are increasingly and appropriately becoming aspirational. The establishment of a separate Youth, Employment and Skill Development Department, a Skills University and a Sports University are steps in the right direction and how they work out will be keenly watched.
Corruption is a big challenge
Bihar is often discussed as a state with concentrated wealth without production due to corruption, which also becomes an election issue every time which is then easily forgotten. According to experts, this not only hinders budding entrepreneurs but also affects the general public.
“Corruption rampant in day-to-day life is a big issue and it is expected that the government will take necessary steps to stop it. When a common man suffers in the circle or block offices or the police station, it becomes a talking point and eventually defames the higher authorities for allowing such things to happen right under their noses. The weight of the huge mandate demands ease of living and curbing corruption is the first step in that direction,” said Ranapratap Singh, a social activist.
People have overwhelmingly supported Nitish Kumar’s style of governance and Narendra Modi’s commitment to make Bihar a hub in eastern India, but now the time has come for the government to live up to their expectations. Strict action on rampant corruption in the Revenue and Land Reforms Department, especially since the commencement of land survey, has already sparked much discussion and protests, and it remains to be seen how Minister Vijay Kumar Sinha is able to come clean.
