Bihar allocates ₹68,216 crore to education, highest in FY 2026

Education emerged as the top spending priority in the Bihar budget for FY 2026–27, presented in the state assembly on Feb 3 by Finance Minister Bijendra Prasad Yadav.

The education and higher education departments together have been allocated ₹68,216 crore, accounting for 19.63% of the total budget for the fiscal year.

This is the highest allocation among all sectors. Rural development follows with an estimated outlay of ₹23,701 crore, or 6.82% of the budget.

Within the education sector, the school education department has been allotted ₹60,204 crore, which is 17.32% of the total budget, while higher education has received ₹8,012 crore, or 2.31%.

“The major projects which would be taken up in FY 2026-27 in the education sector are setting up a model school in each block under the Saat Nischay-3 programs, opening a degree college in each block across the state, upgrading the existing reputed educational institutions as the center of excellence, and the construction of a new education city in Bihar,” Yadav said during his budget speech.

Pension payments account for the second-largest expenditure, with a proposed allocation of ₹35,170 crore, or about 10.12% of the total budget.

Interest payments on various loans are estimated at ₹25,364 crore, making up 7.30%, while ₹22,665 crore, or 6.52%, has been earmarked for loan repayments.

The health department has been allocated ₹21,270 crore, representing 6.12% of the budget, while the home department will receive ₹20,132 crore, or 5.79%.

The energy department is among those receiving more than 5% of the total allocation, with a budget estimate of ₹18,737 crore, or 5.39%.

At the lower end of the spectrum, the parliamentary affairs department has been allotted ₹9.88 crore, which is less than 0.01% of the total budget. The Governor’s secretariat has received ₹60.80 lakh, accounting for about 0.02%.

The allocations highlight the state government’s focus on education as a key driver of human capital development, while also maintaining significant spending on pensions, rural development, energy, health, and fiscal obligations in the FY 2026–27 budget.