The Union Budget 2025 presented by Finance Minister Nirmala Sitharaman placed a significant focus on Bihar, making several key announcements that are expected to have both economic and political implications ahead of the upcoming state elections. The presentation of the budget itself sent a clear signal about the government's priorities when Sitharaman entered Parliament wearing a Madhubani print saree, a gift from Padma awardee Dulari Devi during her visit to Bihar in November 2024. This symbolic gesture was followed by a series of announcements that underscored the government's emphasis on Bihar’s development, particularly in areas that hold electoral significance. Among the most talked-about initiatives was the establishment of a Makhana Board, which aims to improve the production, processing, value addition, and marketing of Makhana, also known as Mithila Makhana, which received the Geographical Indication (GI) tag in 2022. With nearly 80 percent of India’s total Makhana production coming from Bihar, particularly from the Mithilanchal region, this move is expected to directly impact over five lakh farmers across districts such as Darbhanga, Madhubani, Sitamarhi, Saharsa, Katihar, Purnia, Kishanganj, Araria, Supaul, and Madhepura. The formation of the board will help organize farmers into Farmers Producer Organizations (FPOs), giving them better access to markets and financial support.
Another crucial budgetary allocation was financial assistance for the Western Kosi Canal Project, a development initiative aimed at benefiting the Mithilanchal and Kosi regions by improving irrigation facilities and ensuring water availability for agricultural purposes. The project is expected to play a critical role in boosting productivity in a region that has long suffered from erratic water supply and flood-related challenges. The government’s decision to allocate resources to this project ties into a broader strategy of presenting the NDA government’s governance model as one that is committed to infrastructural progress and economic upliftment. The perception being built is that Bihar’s return to the NDA fold under Chief Minister Nitish Kumar has paved the way for renewed development efforts, strengthening the argument for the "double engine ki sarkar" narrative, which suggests that having the same party in power at both the state and central levels leads to more effective governance.
Beyond agriculture and irrigation, the budget also laid out plans for the development of greenfield airports in Bihar, a move that is expected to significantly boost connectivity and economic growth in the state. Improved air travel facilities will not only benefit trade and commerce but also enhance tourism prospects, particularly in regions with cultural and historical significance. This focus on infrastructure development aligns with the broader vision of making Bihar a more attractive destination for investment and business opportunities. Additionally, the expansion of IIT-Patna was highlighted as another key aspect of the budget’s Bihar-centric initiatives. Strengthening the state’s technical education infrastructure is seen as a way to equip the youth with better skills and employment opportunities, thereby contributing to long-term economic growth.
The political implications of these budgetary measures are unmistakable, particularly when viewed through the lens of the upcoming Bihar Assembly elections. The proposal to establish a Makhana Board is expected to have a substantial impact on at least 30 percent of the state’s 243 Assembly seats, particularly in the Mithilanchal and Seemanchal regions. These areas have traditionally been strongholds of the NDA, with BJP and JD(U) representatives holding key parliamentary constituencies such as Madhubani, Sitamarhi, Supaul, Madhepura, Darbhanga, Araria, and Jhanjharpur. By making a direct appeal to Makhana farmers, who form a significant voter base in these regions, the government is strategically consolidating its support ahead of the elections. In total, around 72 Assembly constituencies across Darbhanga, Madhubani, Kishanganj, Sitamarhi, Supaul, Araria, Katihar, Madhepura, Saharsa, and Purnia could see a notable political impact due to these announcements.
The upcoming elections in October-November 2025 will be a litmus test for whether these initiatives translate into electoral gains for the NDA. While the opposition may seek to counter these moves by highlighting other governance issues, the ruling coalition is clearly banking on the developmental narrative to secure voter confidence. The focus on economic upliftment, agricultural support, infrastructure expansion, and educational enhancement presents a multi-pronged approach aimed at reinforcing the government’s commitment to Bihar’s progress. As the election season approaches, it remains to be seen how these budgetary allocations shape the political discourse and whether they effectively bolster the NDA’s position in one of India’s most politically significant states.
