Rashtriya Janata Dal leader and Bihar Assembly Opposition Leader Tejashwi Yadav on Friday raised a sharp alarm over the state's deteriorating finances, alleging that Bihar's public debt has surged more than fourfold and that the state's fiscal deficit-to-GSDP ratio has reached 5.8% in 2025-26 — reportedly the highest among India's major states. Yadav made the allegations in a post on his official X handle, demanding transparency and accountability from the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government in Patna.

Scale of the Debt Crisis

According to Yadav, Bihar's total public debt has grown more than fourfold over the years, placing mounting pressure on the state's expenditure capacity. He alleged that funds are reportedly becoming difficult to arrange for social security pensions, salaries and pensions for government employees, dues owed to contractors, and a range of ongoing development projects. The opposition leader further alleged that substantial additional debt has been taken on over the past two years without a corresponding improvement in the state's financial position.

Impact on Students and Social Schemes

Yadav raised specific concerns over what he described as a reduction in funds available under the Bihar Student Credit Card Scheme and the alleged discontinuation of scholarships. He argued that these measures, if accurate, could adversely affect students and young people across the state — a demographic that Bihar's government has repeatedly cited as central to its development agenda. The opposition has called for these cuts to be reversed and for greater clarity on how allocated funds are being utilised.

What the Opposition Alleges About Fiscal Management

The opposition's critique centres on what it describes as the NDA government's absence of a long-term strategy to boost the state's own revenue, improve tax collection, manage expenditure, and contain the fiscal deficit. Bihar's own revenue generation, critics argue, remains relatively limited compared with its expenditure requirements — a structural challenge that successive governments have struggled to address. Yadav alleged that corruption and mismanagement have compounded this structural weakness, further eroding Bihar's fiscal position.

Political Accountability and Demands

In his post, Yadav questioned where borrowed funds are being utilised and demanded greater transparency in government expenditure. He accused the BJP-led NDA government of failing to safeguard the state's financial interests and warned that continued borrowing without strengthening revenue generation could place an increasing burden on future generations. The opposition leader framed Bihar's worsening fiscal indicators as a matter of collective concern, calling for improved revenue mobilisation and disciplined expenditure management. The NDA government in Bihar has not yet issued a formal response to these specific allegations.

Broader Context

Bihar is one of India's most fiscally dependent states, historically reliant on central transfers and grants. A 5.8% fiscal deficit-to-GSDP ratio — if verified — would significantly exceed the 3% threshold recommended by the Fiscal Responsibility and Budget Management (FRBM) framework. This comes amid broader national concerns about state-level fiscal discipline, with several states having sought additional borrowing headroom from the Centre in recent years. For Bihar, which is already among the lower-income states, a high deficit ratio narrows the fiscal space available for capital expenditure and social welfare.