Analysis: Budget 2025 gifts for Bihar indicate that Modi govt fancies its chances in upcoming Assembly elections

Budget 2025: Just how significant is the Bihar elections for the BJP later this year can be gauged from the fact that the Union finance minister Nirmala Sitharaman, delivered her Budget address wearing the famed Madhubani art print saree from the state’s Mithila region in the north, which was gifted to her by Padma Shree Dulari Devi.

The Budget offerings that came along were no less delectable: the finance minister announced the setting up of a Makhana board in Bihar. This board will help Makhana farmers get benefits from the Centre's various schemes. The move will aid farmers in north Bihar and was welcomed with loud cheers from the treasury benches.

Bihar is also set to get greenfield airports as part of a civil aviation push, the minister stated. She also announced a canal project in the Mithilanchal region. In the education sector, the capacity of the IIT, Patna will be increased.

The FM also proposed the setting up of a National Institute of Food Technology, Entrepreneurship and Management in Bihar to provide a strong fillip to food processing activities in the eastern region. She also proposed financial aid for the Western Kosi Canal ERM project in the Mithilanchal region of Bihar, benefiting several farmers cultivating over 50,000 hectares of land in Bihar.

Ahead of the Bihar Assembly polls, the big offerings for the politically significant state where it shares power with its key ally, Nitish Kumar's JD (U), assumed particular significance. The relief must be seen against the backdrop of JD (U's) critical support of 12 Lok Sabha MPs, in tandem with N Chandrababu Naidu's TDP, to the BJP after the latter fell short of the majority mark in the general election last year.

Kumar, who has made several flip-flops across the political divide but managed to stay on as Chief Minister, is gearing up for another poll fight.

JD (U) MP Sanjay Kumar Jha, naturally, had praises for the Budget. Calling it a huge announcement, he hailed all the steps that the government had proposed.

Bihar Minister Mangal Pandey thanked the central government for forming a Makhana Board, which has been a long-standing demand of farmers in the state. “Farmers cultivating fox nuts have been requesting a board similar to the Tea Board and Rubber Board. This dream has finally been fulfilled,” he said. The move is expected to boost the Makhana industry, benefiting thousands of farmers and tapping into growing global demand.

Several opposition leaders like Congress’s Manish Tewari and Shiromani Akali Dal MP Harsimrat Kaur Badal, have hit out at the centre for ignoring the other states. "Was it a Budget of the Government of Bihar, or a budget of the Government of India? Did you hear the name of any other state in Finance Minister Nirmala Sitaraman's speech?" Tewari tweeted.

BJP's Chances in Bihar

There is little doubt the Budget push may help the BJP in a state – the only Hindi speaking one – which has eluded the saffron party’s full embrace. Since 1989 with the decline of the Congress, Bihar has been dominated by regional political parties.

The dominant formations include the Rashtriya Janata Dal (RJD), JD (U), Congress, Left parties, the Lok Janshakti Party (LJP), and the Hindustan Awam Morcha. Also included are smaller regional parties like Samata Party, Rashtriya Jan Jan party, Jan Adhikar Party and Vikassheel Insan Party, among others.

But in the 2020 assembly elections, the BJP made significant gains, winning 74 seats and was the biggest gainer in terms of number of MLAs elected as it added more than 30% to its seat count compared to the 2015 assembly elections.

Analysts believe that post-Nitish Kumar, who is in the saddle despite getting lower number of seats than the BJP, the saffron party sees Bihar as a low hanging fruit. Given the last election result, the BJP has good reasons to be optimistic.