Bihar’s Time Has Come: Using Budget for a Brighter Future

This year’s Union Budget was a delight for Bihar as it addressed its infrastructure and human development needs. Recently, political pundits debated whether the NDA government led by Prime Minister Narendra Modi would grant Bihar special status, given the state’s slower growth compared to other Indian states. However, Finance Minister Nirmala Sitharaman had other plans. Instead of simply granting special status, she came up with a comprehensive plan for Bihar’s economic growth, infrastructure development, social welfare and healthcare.

Bihar, a state with special significance in Budget 2024, is not only one of the most populous states in India but also boasts of a rich cultural heritage and historical significance. Despite development challenges, Bihar’s growth potential makes it a key focus point in the country’s economic planning.

The allocation of Rs 26,000 crore for Bihar in the Union Budget 2024 is expected to benefit several key sectors, including infrastructure and construction, healthcare and manufacturing. Substantial investments in road connectivity, development of an industrial hub at Gaya and setting up of new medical colleges will strengthen the state’s infrastructure, boost industrial growth and improve healthcare services. Moreover, the agriculture sector will benefit from improved irrigation and farm-to-market connectivity, while the education sector will see progress with the setting up of new institutions and skill development centres. These initiatives are aimed at driving economic growth and improving the quality of life in Bihar.

The Economic Miracle That Didn’t Happen

The political and social landscape of Bihar has seen various social revolutions, including the famous JP movement, the rise of Karpoori Thakur as a leader of the backward class and the identity politics of Lalu Yadav. Although most of the political leaders in Bihar espoused socialism, their policies rarely achieved I am janmanas and led to the state being called ‘bimaru’ (sick). During Lalu Prasad Yadav’s tenure, the society witnessed rampant corruption, lawlessness, diversion of funds meant for public welfare, poor healthcare, inadequate sanitation etc.

Bihar has consistently remained a poor performer in terms of economy, Human Development Index and other key parameters. It has the lowest literacy rate in the country at 61.8 per cent. Over 75 per cent of Bihar’s population is engaged in agriculture and allied activities, often resulting in a lack of formal education and skill development. On the other hand, neighbouring Uttar Pradesh, under the leadership of CM Yogi Adityanath, has shown significant growth thanks to the central government’s focus on developing expressways, highways and other major roads.

The Centre’s focus on improving Bihar’s infrastructure, industrial sector and cultural development could mark a key moment for the state’s struggling economy. While some may argue that this year’s budget reflects the needs of the NDA government’s allies, it is important to note that a special financial package for Bihar has been long overdue.

Why does Bihar need investment in highways and industries?

It is now known that the BJP’s twin-engine government at the state and central levels has significantly improved the status of Uttar Pradesh, especially in its western region. Expressways like Gorakhpur-Shamli, Delhi-Saharanpur-Dehradun, Ghaziabad-Kanpur, Lucknow-Kanpur, Noida-Greater Noida, Bundelkhand and Delhi-Meerut have played a key role in attracting key investments and industries to the region. Bihar, on the other hand, lacks dedicated expressways to connect its major industrial clusters.

In her budget, the finance minister announced the construction of a 300-km Patna-Purnia Expressway and a 386-km Gaya-Buxar-Bhagalpur Expressway. These expressways are the backbone of industrial development as improved roads facilitate better transport and services. Moreover, the renovation of cultural and religious sites like the Vishnupad Temple and the Mahabodhi Temple, modelled on the Kashi Vishwanath Corridor, is expected to significantly boost tourism in the state, which was earlier lesser known for its attractions.

Bihar has long been grappling with a number of industrial challenges, including inadequate infrastructure, shortage of skilled labour, bureaucratic hurdles, limited access to finance and poor basic services. A comprehensive road map was needed to address these issues, which was included in this year’s budget. Improving infrastructure through improved road networks, expanded rail connectivity and reliable power supply is key.

To address the skills shortage, promoting vocational training tailored to industry needs is essential. Simplifying regulations and improving transparency will foster a more business-friendly environment. Facilitating access to finance for SMEs and startups, while supporting key sectors such as agriculture, manufacturing, IT and tourism through targeted policies and incentives, is also important. In addition, improving basic services such as healthcare, education and water management will support overall industry growth.

A coordinated approach can unleash Bihar’s industrial potential and boost economic development.

Use of the EU budget

Bihar’s youth flock to the financial capital, Mumbai, and the IT hub, Bengaluru, in search of career opportunities. However, the Union Budget can be used to Bihar’s advantage as the state has a number of factors that will help in better utilisation of these funds.

Bihar’s demographics, a helping hand: Bihar’s demographic advantage, characterized by a large, young population and a significant proportion of working-age people, is a key driver of the state’s economic growth. This advantage provides a large workforce capable of feeding various sectors of the economy, including agriculture, manufacturing, services and technology.
Young Workers: Bihar boasts of one of the highest youth populations in India. The budget focus on education and skill development aims to tap into this demographic opportunity by improving the quality of education and providing vocational training. This initiative is crucial to equipping young people with the skills required in modern industries, thereby increasing their employability and productivity.
Rural and Agricultural Potential: Bihar’s economy, with a large rural population, is deeply rooted in agriculture. Budgetary allocation for agricultural development, irrigation and rural infrastructure will modernize agricultural practices and improve productivity. This will not only enhance food security but also create numerous employment opportunities in the agribusiness sector.
Demographic Dividend and Economic Growth: A large youth base provides a significant pool of labour that is essential for industrial and economic growth. Budget investments in infrastructure, healthcare and education aim to ensure that this workforce is healthy, educated and skilled, ready to take on roles in a variety of emerging sectors. This will spur industrial growth, attract investment and promote entrepreneurship among young people.
Urbanization and New Opportunities: Along with the growth of urban areas, the budget’s focus on urban development and infrastructure will create new economic opportunities and strengthen the sense of hope. Improved connectivity and development of industrial corridors are expected to attract businesses, increase production and generate employment, further improving the economic landscape of Bihar.

The way forward

To effectively boost Bihar’s development within the current budget, focus needs to be placed on several strategic areas.

First, significant investment in infrastructure is needed, including modernizing roads, bridges and public transport systems, as well as improving energy supplies to support industrial growth. It is also important to increase education and vocational training, with increased funding for schools and colleges and expanded skills development programs to prepare young people for the job market.

In health care, upgrading facilities and expanding services, especially in rural areas, can improve access to health care and address public health problems. Supporting agriculture through subsidies, improved irrigation, and market access will increase productivity and provide fair prices for farmers. Economic growth can be stimulated by creating a favorable environment for businesses, promoting local industries, and offering incentives.

Social programmes should be strengthened to alleviate poverty and support vulnerable groups, with special attention to women and children development. Improving governance and transparency is essential, achieved through efficient administration, reducing corruption and increasing citizen involvement in budget planning. By prioritising these areas, Bihar can effectively utilise its budget to drive sustainable development and improve the quality of life of its people.

In conclusion, the current political landscape in India is increasingly favorable for Bihar, offering a unique opportunity for significant progress. It is high time for both the leaders and the people of Bihar to seize this moment. By strategically investing in infrastructure, education, healthcare, agriculture and economic growth, and by enhancing social welfare and governance, Bihar can leverage its fiscal resources to drive significant development. This concerted effort will not only address the current challenges but also pave the way for a more prosperous and equitable future for the state.

For long, Bihar has been known for crime, corruption and other bad reasons. However, Budget 2024 offers a renewed sense of hope for the state, its leaders and its people. It is a chance to shed these outdated perceptions and focus on the infrastructural and cultural development of Bihar.

The author is a political consultant with Varahe Analytics Private Limited. His areas of interest include national politics, public policy and national security. The views expressed in the above article are personal and solely those of the author. They do not necessarily reflect the views of News18.