Bihar awaits Budget with hopes for sectoral support

Patna: From industries, commerce, and trade to entrepreneurs and realtors, Bihar's diverse sectors eagerly await the Union Budget 2025-26, scheduled for presentation in Parliament on Feb 1. The stakeholders anticipate that the financial road map will contribute significantly towards fostering comprehensive development and advancement across the state.
KPS Keshri, president of Bihar Industries Association, said they sent a proposal to the finance ministry and suggested selecting 100 backward industrial districts across the country, similar to how aspirational districts have been identified and supported for development. "The Centre is already funding the development of these districts. The aim is to choose 100 industrially backward districts for similar support, as more than 50% of these districts are from our state, which would provide a significant boost," he said.
"The second important matter is infrastructure creation. We have proposed that substantial funds are needed for various infrastructure projects, such as making a National Waterway on the Ganga and developing dry ports and expressways. The govt should allocate Rs 50,000 crore annually for ten years, not as a grant but as a long-term interest loan over 25 to 30 years. This approach was used before, as seen in the Rs 11,000 crore provided for flood protection," Keshri told this newspaper on Thursday.
Abhishek Kumar, secretary general of Bihar Entrepreneurs' Association, said as an entrepreneur, his expectation was that the production costs and logistics costs should be controlled. "Another issue is protecting the rights of entrepreneurs, especially new, small, young, and women-led startups. Large startups and big groups are eliminating them through local competition due to cost margins and deal prices."
Kumar further said that thousands of startups in every state are facing these challenges. "The focus should be on how to protect new startups and provide them with market opportunities so they can perform well. This should be a priority in the budget. Additionally, it's crucial to promote products from smaller states like Bihar on a national level and enhance their export potential," he said.
Sudhanshu Kumar, economist and associate professor at Bihar Institute of Public Finance and Policy (BIPFP) Patna, said, "Bihar is looking forward to the upcoming Union Budget for 2025-26 with a sense of optimism, anticipating that it will address the state's developmental priorities, which are vital for supporting India's Vision 2047. It is essential to build upon the govt's previous initiatives while embracing new reforms that could invigorate the economy. In this context, an increase in capital expenditure aimed at enhancing infrastructure that facilitates economic activities would be greatly beneficial."
"Also, further financial assistance for micro, small, and medium enterprises (MSMEs) to support entrepreneurial growth in the state is expected. Moreover, there is a shared aspiration among women, youth, and farmers in the state for provisions that foster their economic empowerment. The middle class, too, looks forward to measures, such as tax relief, that could enhance consumption expenditure in the economy. Bihar also hopes to be acknowledged in the budget speech with a focus on state-centric projects and initiatives, reflecting its residents' unique needs and aspirations," Kumar said.
Narendra Kumar, national managing committee member, Confederation of Real Estate Developers' Associations of India (CREDAI), said benefits for the economically weaker section (EWS) and low-income group (LIG) should be maintained and the interest subsidy should be increased in the upcoming Budget.