33000 crore announcements: Will Bihar’s economy bear it? Paisa Live | 33,000 Crore Announcements: Can Bihar’s Economy Withstand IT?

With the announcement of Bihar assembly elections, the announcements of political parties are seeing a glut of Revdi culture i.e. Freebies. Promises have been made in the last 6 months such as free electricity, smartphone tablet, ₹ 10,000 to women and ₹ 15,000 pension to journalists. The total burden of these announcements is ₹ 33,000 crore, which is a 55% share of the total Tax Revenue ₹ 59,520 crore in the state. The matter is that this is being spent when Bihar is already in debt of ₹ 4.06 lakh crore. At the same time, only ₹ 40,532 crore is being spent on infrastructure like road, water, health and education. If these freebies continue even after the election, further cuts in capital outlay are possible. Bihar’s Budget is already 53% dependent on the assistance of the central government, and the state’s spending on road education is only 13%, while it is 21% in UP and 17% at the national level. Bihar is not alone – Maharashtra, Karnataka and Telangana are also on this path.