author(s)
Ashish Kumar Mishra

abstract
This paper examines the evolution of fiscal discipline and budgetary priorities in Bihar over the recent financial years, focusing on trends in revenue mobilization, expenditure composition, deficits and debt, and the trade-offs the state faces between social investment and committed expenditures. Drawing on Bihar’s Economic Survey, state budget documents, Comptroller & Auditor General (CAG) reports, PRS/independent analyses and RBI state finance studies, the paper maps key indicators and highlights structural constraints such as high committed spending, dependence on central transfers, and limited own-tax buoyancy that affect fiscal space. The paper argues that while Bihar has recorded improvements in GSDP growth and revenue mobilisation in recent years, sustainable fiscal consolidation will require a balanced focus on expanding own revenues, improving capital spending efficiency, rationalizing subsidies and pensions, and strengthening public financial management systems. Policy recommendations include broadening the tax base, improving tax administration, prioritising capital outlay with clear outcomes, reforming personnel and pension liabilities prudently, and investing in digital public financial management to reduce leakages.