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Bihar's Fiscal Tightrope: Election Promises Strain State Finances, Prohibition Ban Eyed for Revenue Boost

Economy

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Published on 18th November 2025, 12:51 AM

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Author

Simar Singh | Whalesbook News Team

Overview

Bihar's government faces a significant fiscal challenge due to costly election promises, estimated at over ₹50,000 crore annually. With a growing debt and limited borrowing capacity, the state is exploring ending its prohibition policy. Experts suggest this could generate substantial revenue, potentially up to ₹40,000 crore in a few years, which could help finance welfare schemes and balance the budget.