How Freebies Kill Bihar's Development: The Economic and Social Destruction of Talent and Growth The Freebie Trap: Bihar's Economic Catastrophe in Numbers Bihar stands at a dangerous crossroads where electoral populism is systematically destroying its economic future. The latest data reveals a state drowning in fiscal irresponsibility, with freebies worth ₹33,000 crore announced for the 2025 elections alone—an amount that represents 81% of Bihar's entire growth budget and more than half of the state's own tax revenue. This astronomical figure becomes even more alarming when viewed against Bihar's existing debt burden of ₹4.06 lakh crore. The state's fiscal deficit has exploded from 2.62% of GSDP in 2018-19 to 5.97% in 2022-23, far exceeding the prescribed limit of 4% under the Bihar Fiscal Responsibility and Budget Management Act. Meanwhile, subsidies have increased from 6.66% of revenue expenditure in 2018-19 to 8.06% in 2022-23, with power subsidies alone con...
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