A Budget for Progress or Politics? The Bihar Factor in 2025

K K Jha
Finance Minister Nirmala Sitharaman’s Union Budget 2025, presented in a saree adorned with Mithila paintings, carried both symbolism and strategic intent. While it outlined a broad economic vision, the strong focus on Bihar—just months before its assembly elections—raised questions about whether it was a budget for national growth or a calculated political move.

A Windfall for Bihar: Development or election strategy?

Bihar emerged as a clear winner in this budget, with major allocations aimed at infrastructure, agriculture, and tourism. The government announced a Makhana Board to boost production and exports, new greenfield airports to improve connectivity, and a National Institute of Food Technology to elevate Bihar’s food processing industry.

Additionally, ₹11,500 crore was earmarked for flood control, a long-pending demand, while temple corridors in Gaya and Rajgir were introduced to boost religious tourism. These initiatives promise progress but align conveniently with the upcoming state elections, raising speculation about their true intent. Opposition parties have criticized the budget as Bihar-centric rather than addressing national priorities. The 2025 Union Budget, alongside providing special allocations for Bihar, also mentioned IIT Patna, which can prove to be a significant step in the state’s higher education sector. This move is a crucial initiative aimed at enhancing Bihar’s technological and research capabilities.

The budget proposed several plans for the development of IIT Patna, with the aim of accelerating research and development activities in new fields. Additional resources have been allocated to develop IIT Patna as a cutting-edge research institution, which will contribute not only to the state but to the entire nation’s technological progress.

Middle Class and Farmers: A balancing act

The budget extended a much-needed hand to the middle class, offering tax relief to increase disposable incomes, incentivizing electric vehicle adoption, and expanding skill development programs to enhance employment opportunities. For farmers, the government focused on increasing oilseeds productivity through higher MSP and research initiatives, reducing India’s dependence on edible oil imports.

Improved irrigation facilities and rural infrastructure support aim to stabilize the agricultural sector while ensuring long-term food security. These measures, if effectively implemented, could significantly impact rural and urban economic landscapes.

Big Vision: Energy, innovation & global competitiveness

Beyond state-specific allocations, the budget laid an ambitious roadmap for India’s future. A massive push for nuclear energy, with an investment to generate 100 GW, signals the government’s commitment to clean and sustainable power.

The startup ecosystem received a boost with tax benefits and funding support, reinforcing India’s goal of becoming a global innovation hub. Export promotion policies were introduced to strengthen India’s trade competitiveness, particularly in technology and agriculture. These measures indicate a long-term growth vision, but their execution will determine their true impact on the economy.

A Budget for growth or a pre-election pitch?

Union Budget 2025 attempts to balance economic expansion with political calculations. While Bihar enjoys substantial attention, the broader reforms in energy, exports, and innovation reflect a national growth strategy. The real challenge lies in execution. If implemented effectively, these initiatives could transform India’s economic trajectory. If not, the budget risks being remembered as a pre-election pitch rather than a milestone for development.