Bihar finances under strain over surging debt, poor fiscal management: Tejashwi Yadav

Bihar’s financial position has come under renewed political scrutiny, with Leader of Opposition in the state assembly and RJD leader Tejashwi Yadav accusing the NDA government of failing to contain rising debt, a widening fiscal deficit and mounting pressure on state expenditure.

Yadav alleged that Bihar’s total public debt has increased more than fourfold over the years and claimed the government is facing growing difficulties in meeting obligations ranging from social security pensions and payments to employees and pensioners to contractors’ dues and funding for development projects.

In a post on X on Friday, the RJD leader questioned how the state was using the additional debt it had accumulated and demanded greater transparency in government borrowing and expenditure.

Yadav also raised concerns over the reported reduction in funds for the Bihar Student Credit Card Scheme and the discontinuation of certain scholarships.

He argued that any reduction in support for education and student welfare could have a direct impact on young people in a state where access to higher education and employment opportunities remains a major political issue.

The Opposition has highlighted Bihar’s reported 5.8 per cent fiscal deficit-to-GSDP ratio for 2025-26, describing it as the highest among India’s major states.

Yadav and the RJD have argued that the combination of a high fiscal deficit and rising debt is particularly concerning because Bihar’s own revenue base remains relatively limited compared with its expenditure requirements.

The Opposition has also questioned the government’s approach to revenue mobilisation, tax collection and expenditure management, alleging that the NDA lacks a long-term strategy to strengthen Bihar’s finances.

Yadav alleged that the state has taken on substantial additional debt over the past two years without a corresponding improvement in its financial position.

He questioned where the borrowed money was being spent and called for greater accountability in the utilisation of public funds.

The RJD leader also accused the BJP-led NDA government of financial mismanagement and corruption, alleging that these factors were contributing to Bihar’s deteriorating fiscal position.

He warned that continued borrowing without a parallel increase in revenue generation could increase the financial burden on future generations.

The Opposition has called for stronger revenue mobilisation, better tax collection, tighter expenditure controls and greater transparency in government finances.

Yadav said Bihar’s fiscal indicators should be treated as a serious matter of public concern and urged the government to adopt a long-term strategy focused on strengthening the state’s own revenues while maintaining spending on welfare, education and development.

The allegations have added a financial dimension to the broader political contest in Bihar, with the Opposition seeking to make the state’s debt, deficit and spending priorities a key issue in its criticism of the NDA government.

With IANS inputs