The Bihar Budget 2025 has been presented, and one of the key questions being asked is how it compares to Uttar Pradesh’s budget. With both states being among the largest in India in terms of population and economy, understanding the difference in their budget allocations provides insight into economic priorities, development strategies, and financial planning.

How Much Less is Bihar’s Budget Compared to UP?

Bihar’s budget size is significantly smaller than that of Uttar Pradesh. While exact figures depend on the latest allocations, historically:

• Uttar Pradesh’s budget is much higher, often crossing ₹6-7 lakh crore.
• Bihar’s budget usually remains in the range of ₹2-3 lakh crore, making it almost half or even less than UP’s budget.

Why is Bihar’s Budget Smaller Than Uttar Pradesh’s?

Revenue Collection and Economy

• Uttar Pradesh has a larger industrial and service sector, contributing to higher tax revenue.
• Bihar’s economy is more dependent on agriculture, leading to lower revenue generation.

State GDP and Per Capita Income

• UP’s Gross State Domestic Product (GSDP) is higher, allowing for greater government spending.
• Bihar has one of the lowest per capita incomes in India, affecting its revenue base.

Central Government Allocations

• Bihar receives a higher percentage of funds from the central government due to its lower revenue capacity.
• Uttar Pradesh, being a larger economy, generates more of its budget from internal sources.

Key Differences in Budget Priorities