Budget announcements for Bihar: Makhana Board, airports expansion, financial support for Kosi project and more

Prime Minister narendra Modi with Bihar Chief Minister and JD(U) chief Nitish Kumar. (File Photo: PTI)

The central government on Saturday rolled out a slew of measures for Bihar which heads to polls later this year. Presenting the Union Budget for the year 2025-26, Finance Minister Nirmala Sitharaman announced financial support for the Western Kosi canal project in the Mithilanchal region of Bihar, setting up of a Makhana Board and an institute in Bihar for food processing, besides expansion plans for airports as well as the IIT-Patna.

"Financial support will be provided for the Western Kosi Canal ERM project, benefiting a large number of farmers cultivating over 50,000 hectares of land in Bihar," the FM said referring to the Western Kosi Canal project in Mithilanchal.

In her Budget for the agriculture sector, FM Sitharaman announced the setting up of a Makhana Board and said it will handhold and train makhana farmers and help them get access to all relevant government schemes.

"Makhana board to be set up in Bihar. The Board will handhold and train makhana farmers and help them get access to all relevant government schemes," the FM said in her Budget speech for the year 2025-26. As per the Budget, the allocation for the Makhana Board is Rs 100 crore.

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"For food processing, we will establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar. This will result in enhanced income for farmers through value addition and skilling, entrepreneurship and employment opportunities for the youth," she added.

As per the FM, this initiative is expected to yield two major benefits. "First, it will increase farmers' earnings by adding value to their produce, and second, it will generate opportunities for skilling, entrepreneurship, and employment among the region’s youth," she added.

The Finance Minister further said that the capacity of Indian Institute of Technology in Patna will be increased as part of the capacity expansion in IITs through the addition of additional infrastructure in five IITs for 6,500 more students.

"IITs’ capacity will be expanded. Total number students in 23 IITs has increased 100% from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the five IITs started after 2014 and IIT Patna will also be expanded," she said.

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The Finance Minister also announced greenfield airports in Bihar, a brownfield airport in Bihta, besides the expansion of  the Patna airport.

Why the announcements are significant

The announcements for Bihar assume significance for multiple reasons. The state heads to polls in November this year. The NDA government in power also includes the Janata Dal(United) of Chief Minister Nitish Kumar. The party also plays a crucial role at the Centre with the BJP having depended on the JD(U)'s support for government formation.

The special focus on Bihar in the Budget also caught the Opposition's attention with the Congress pointing out that the measures announced are based on an eye on polls. "Bihar appears to have got a bonanza of announcements. It is natural since elections are due there later in the year. But why is the other pillar of the NDA, namely Andhra Pradesh, been so cruelly ignored?" Congress general secretary (communications) Jairam Ramesh said reacting to the Budget.

What Bihar sought from Centre in Budget

In a 32-page memorandum submitted to FM Sitharaman ahead of the Budget, Bihar Deputy Chief Minister Samrat Choudhary sought Rs 13,000 crore in aid from the Centre for flood management in North Bihar, upgrading Darbhanga airport, new airports in Rajgir and Bhagalpur, and funding for Raxaul airport.

He also requested the construction of 10 new Kendriya Vidyalayas, a 1 per cent Gross State Domestic Product relaxation for additional borrowing, and approval of a small modular nuclear reactor, apart from high-speed corridors.

The Union Budget for 2024-25 had allocated Rs 59,000 crore for road connectivity, power, and flood management in Bihar. Chief Minister Nitish Kumar had then said the Centre should either grant Bihar special category status (SCS) or a special package.