Tejashwi Yadav flags Bihar financial crisis over ₹3,662 crore contingency fund withdrawal
Synopsis
Bihar's opposition leader Tejashwi Yadav has raised a pointed alarm: the state had to dip into its emergency Contingency Fund — meant for disasters, not routine payments — to pay social security pensions worth ₹3,662 crore. If the allegation holds, it would mean Bihar's fiscal architecture is under genuine stress, not just political spin.
Key Takeaways
Tejashwi Yadav alleged on 10 June that Bihar is heading toward a financial crisis under the NDA government .
The Bihar Cabinet approved withdrawal of ₹3,662 crore from the Bihar Contingency Fund to pay social security pensions for May, June, and July .
Tejashwi alleged that employee salaries and pension payments have been delayed for several months due to an 'empty treasury.' He claimed contractor payments have been pending for more than one year and development projects from FY 2023-24 remain unstarted.
The RJD leader demanded that Chief Minister Samrat Choudhary publicly explain the decision to use the Contingency Fund for routine pension disbursements.
Rashtriya Janata Dal (RJD) leader and Bihar's Leader of the Opposition Tejashwi Yadav on Wednesday, 10 June alleged that the state is drifting toward a severe financial crisis under the NDA government, questioning whether Bihar is edging closer to a situation comparable to a financial emergency. His remarks followed the Bihar Cabinet's approval of a ₹3,662 crore withdrawal from the Bihar Contingency Fund to disburse social security pensions for May, June, and July.
The Contingency Fund Controversy
The Contingency Fund is conventionally reserved for urgent, unforeseen expenditures — natural disasters, emergencies, or acute fiscal shortfalls — not routine pension payments. Tejashwi Yadav argued that tapping this reserve for scheduled pension disbursements signals a deeper malaise in the state's finances.
'Bihar's financial crisis has become so severe that the state government has had to withdraw ₹3,662 crore from the Contingency Fund just to pay pensions. One can imagine how alarming and dangerous the situation has become,' he said.
Allegations of Delayed Salaries and Stalled Projects
The RJD leader alleged that salary and pension-related payments across the state have been delayed for several months due to what he described as an 'empty treasury.' He further claimed that payments to contractors have remained pending for more than a year.
'We have been saying for the last six months that employee salaries and pension-related payments are getting delayed because the treasury is empty. Contractors have not been paid for more than a year,' he alleged.
Tejashwi Yadav also claimed that development projects sanctioned during Financial Year 2023-24 have not yet commenced, and that several recently announced welfare schemes remain confined to press releases. He additionally alleged that the state Cabinet discontinued the Bihar State Crop Assistance Scheme citing a shortage of funds.
Broader Governance Concerns Raised
Beyond fiscal management, the opposition leader alleged that Bihar is experiencing frequent power cuts, delays in scholarship disbursements, and stagnation in the Student Credit Card Scheme. He accused the 'double-engine' government — a reference to the BJP-led alliance governing both the state and the Centre — of pursuing 'anti-people' and 'pro-corporate' policies that have deepened economic distress for ordinary residents.
Direct Challenge to Chief Minister
Tejashwi Yadav directed pointed questions at Chief Minister Samrat Choudhary, asking why routine pension payments are being routed through the Contingency Fund rather than regular budgetary provisions.
'Despite decades of a double-engine government, why has such a situation arisen? Instead of raising unnecessary issues, the novice Chief Minister should address the people of Bihar, who are worried and apprehensive about the state's deteriorating financial condition,' he said.
The allegations have sharpened the political battle over Bihar's fiscal health ahead of what is expected to be a contentious legislative session, with opposition parties seeking to hold the NDA dispensation accountable on governance and financial management.
Point of View
But the underlying fiscal signal deserves scrutiny independent of the messenger. A Contingency Fund withdrawal for scheduled pension payments — not a flood or earthquake — is structurally unusual, and the Bihar government has not yet offered a public counter-narrative on why regular budgetary channels were bypassed. Bihar's dependence on central transfers has long made its finances vulnerable to timing mismatches, but if contractor dues and salary delays are as widespread as alleged, the problem may be structural rather than seasonal. The NDA's silence on the specifics, rather than a point-by-point rebuttal, risks letting the opposition set the terms of the fiscal debate heading into the next legislative session.
NationPress
5 Aug 2026
Frequently Asked Questions
Why is Tejashwi Yadav alleging a financial crisis in Bihar?
Tejashwi Yadav alleged a financial crisis after the Bihar Cabinet approved a ₹3,662 crore withdrawal from the Bihar Contingency Fund to pay social security pensions for May, June, and July 2025. He argued that using an emergency reserve for routine pension payments reflects a serious deterioration in the state's fiscal health.
What is the Bihar Contingency Fund and why is its use controversial here?
The Bihar Contingency Fund is a reserve meant for urgent, unforeseen expenditures such as natural disasters or acute emergencies — not scheduled welfare payments. Critics, including Tejashwi Yadav, contend that drawing from it to meet routine pension obligations suggests the state's regular budget is under severe strain.
What other fiscal problems has Tejashwi Yadav alleged in Bihar?
Beyond the contingency fund issue, Tejashwi Yadav alleged that employee salaries and pension payments have been delayed for several months, contractor dues have been pending for over a year, development projects from FY 2023-24 remain unstarted, and the Bihar State Crop Assistance Scheme has been discontinued due to a fund shortage.
Who is Bihar's Chief Minister and what has Tejashwi Yadav demanded of him?
Bihar's Chief Minister is Samrat Choudhary. Tejashwi Yadav has demanded that Choudhary publicly explain why pension payments are being funded through the Contingency Fund rather than regular budgetary provisions, and address public concerns about the state's deteriorating financial condition.
Has the Bihar government responded to these allegations?
The source does not contain an official response from the Bihar government or the NDA to Tejashwi Yadav's allegations. The opposition's charges have, according to reports, intensified political debate over the state's fiscal management.
