Union Budget 2025: Bihar emerges big winner as Modi govt lines up schemes for poll-bound state

The finance minister also announced support for the Western Koshi Canal Project in the Mithilanchal region of Bihar.

New Delhi: Bihar got a ‘special treatment’ in the Narendra Modi government’s latest budget as Finance Minister Nirmala Sitharaman on Saturday announced a slew of projects for the poll-bound state, including a mechanism for promoting fox nut cultivation, a food technology institute and financial assistance for a canal project in the Mithilanchal region.

It also announced capacity enhancement at IIT-Patna and Patna airport, greenfield airports and a brownfield airport in Bihta. The measures were seen as an attempt to woo farmers, agricultural entrepreneurs, youth and middle class ahead of the Assembly elections.

As BJP's Bihar allies like JD(U) Working President Sanjay Jha and Union Minister and LJP (Ram Vilas) leader Chirag Paswan hailed the announcements, Congress General Secretary (Communications) Jairam Ramesh said Bihar appears to have got a bonanza in an election year while the other pillar of the NDA, Andhra Pradesh, has been so “cruelly ignored”.

In the budget presented in July last year after the BJP returned to power on the crutches of its allies JD(U) and TDP, the Finance Minister had announced schemes for both Bihar and Andhra Pradesh but this time, her budget speech did not mention the latter. TDP sources said their demands were met before the budget and one should not read too much into it.

Sitharaman said in the new budget there is a “special opportunity” for the people of Bihar, as the government is setting up ‘Makhana Board’ (board for fox nuts) in Bihar to improve its production, processing, value addition and marketing.

“The people engaged in these activities will be organised into FPOs (farmer producer organisations). The Board will provide handholding and training support to ‘makhana’ farmers and will also work to ensure they receive the benefits of all relevant government schemes,” she said.

Emphasising Modi government's commitment to 'Purvodaya' (rising east), she announced a National Institute of Food Technology, Entrepreneurship and Management in the state to provide a “strong fillip” to food processing activities in the entire eastern region.

This will result in enhanced income for the farmers through value addition to their produce and skilling, entrepreneurship and employment opportunities for the youth, she said.

Another farmer-friendly measure was the financial support for the Western Koshi Canal Project, which would benefit farmers cultivating over 50,000 hectares of land in the Mithilanchal region.

In addition to the expansion of the capacity of Parna airport and a brownfield airport in Bihta, Sitharaman made it clear that greenfield airports will be facilitated in Bihar to meet the future needs of the state.

Looking at improving the higher education sector in Bihar, she also announced the move to expand Hostel and other infrastructure capacity at IIT-Patna.

In July, Sitharaman had proposed an outlay of over Rs 60,000 crore for various projects, including funding for three expressways projects, a power plant, heritage corridors and new airports and sports infrastructure.

She had announced support for the development of Gaya as an industrial node on the Amritsar-Kolkata Industrial Corridor, setting up of a new 2400 MW power plant at Pirpainti besides constructing new airports, medical colleges and sports infrastructure. She had also promised to expedite requests of the Bihar government for external assistance from multilateral development banks.

With Bihar facing frequent floods, the budget also had promised that the union government will provide financial support for projects worth Rs 11,500 crore to fund ongoing and new schemes including barrages, river pollution abatement and irrigation projects. In addition, survey and investigation of Kosi related flood mitigation and irrigation projects were also promised to be undertaken.

A comprehensive development initiative for Rajgir was also announced besides supporting the development of Nalanda as a tourist centre and reviving Nalanda University to its glorious stature.

Key points

• Makhana (fox nut) Board to handhold and train farmers

• To set up National Institute of Food Technology, Entrepreneurship and Management

• Expansion of hostel and other infrastructure capacity at IIT-Patna

• Greenfield airports in Bihar, capacity expansion in Patna airport

• Financial support for Western Koshi Canal ERM Project

Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.