Ranchi: Finance Minister Radha Krishna Kishore tabled state’s ₹1,45,400 crore budget for 2025-26 in the state assembly on Monday, unveiling a transformative fiscal plan christened the “Abua Budget”—or “Our Budget” in the local dialect—that blends ambitious economic targets with unprecedented public participation. Delivered in a two-hour address brimming with optimism, Kishore outlined a vision to catapult Jharkhand into a ₹10 trillion (£1 trillion) economy by 2029, up from its current ₹4 trillion valuation, while prioritising women’s empowerment, rural prosperity, and tourism growth. The budget, shaped by thousands of citizen suggestions via the Abua Budget Portal and Mobile App, reflects Chief Minister Hemant Soren’s pledge to govern inclusively.
In his address, the Finance Minister highlighted the strong recovery of Jharkhand’s economy, especially after the challenges posed by the COVID-19 pandemic. The state’s economic growth rate, which was a modest 1.1% in 2019-20 due to the pandemic’s disruptive effects, has demonstrated a remarkable turnaround. By 2022-23, Jharkhand’s economic growth rate surged to 7.8% at constant prices, far exceeding expectations. For 2023-24, the state’s growth rate is expected to be 7.5%, with similar growth projections for 2025-26. This recovery is the result of sound fiscal management, structural reforms, and government initiatives aimed at boosting industrial and economic activities within the state.
The centerpiece of the fiscal plan is a ₹13,363 crore allocation for the Maaiyan Samman Yojana, a flagship initiative targeting 3.5 million women aged 18-50. Kishore detailed how each eligible woman will receive ₹2,500 monthly—₹30,000 annually—directly into their bank accounts, starting April 2025. “This is about dignity, not handouts,” he emphasised, projecting that the scheme will inject ₹10,500 crore into the economy yearly, boosting local markets and household spending. Soren later called it the “foundation of a sashakt aur samarth Jharkhand” (empowered and capable Jharkhand), predicting it would reduce poverty among women by 15% within three years.
The Finance Minister also emphasized the state’s efforts in maintaining a disciplined fiscal approach, which has significantly improved its Debt-to-GDP ratio. While the state’s debt stood at 30.2% of its GDP in 2021-22, it has steadily reduced to 28.4% in 2022-23, and is expected to further improve to 27.7% in 2023-24. Projections suggest a consistent decline, with the ratio estimated to reach 27.5% in 2024-25 and stabilize at 27.3% by 2025-26. This improvement in the debt ratio reflects the state’s commitment to fiscal responsibility while still prioritizing development and infrastructure growth.
Revenue generation has been a key pillar of Jharkhand’s fiscal strategy, and the budget showcases impressive growth in this regard. In 2019-20, the state’s total revenue was ₹25,521 crore, and by 2023-24, it had increased to ₹41,429.88 crore. Looking ahead, the state’s revenue collection is expected to reach ₹61,056.12 crore by 2025-26, marking a steady and substantial growth in financial resources. The state’s revenue mix has also shifted, with the tax revenue expected to account for a larger share of the total revenue. In 2019-20, the tax-to-non-tax revenue ratio stood at 47:53, but by 2025-26, it is expected to shift to 37:63, with tax revenue projected at ₹53,658 crore and non-tax revenue expected to touch ₹91,741 crore.
Capital expenditure, which plays a vital role in fueling infrastructure development, has also been a priority in the state’s financial planning. In 2025-26, Jharkhand has proposed an allocation of ₹34,763.30 crore for capital expenditure, reflecting a 7.81% increase over the previous year’s revised estimates. The state’s capital expenditure plan is focused on improving physical infrastructure, including roads, bridges, and other public utilities, as well as enhancing social infrastructure such as healthcare and education. This investment is expected to drive employment, boost local economies, and foster sustainable development across the state.
In addition to infrastructure, the government has given significant importance to the pension system and debt management. The Finance Minister highlighted the state’s successful investment of ₹2,282 crore in its Sinking Fund, designed to support debt repayment. This strategic move has improved the state’s creditworthiness and ensured long-term fiscal sustainability. Furthermore, the pension fund received a substantial allocation of ₹700 crore in 2023-24, followed by ₹780 crore in 2024-25. For 2025-26, the pension fund is set to receive ₹832 crore, ensuring that retirees and government employees continue to receive their entitlements in a timely manner.
The 2025-26 budget also places a special focus on children’s welfare, with the creation of a dedicated child budget. This initiative highlights the government’s commitment to child-centric policies, ensuring that development efforts prioritize the future of Jharkhand’s younger generation. The child budget for 2025-26 is set at ₹9,411 crore, which represents a 6% increase from the previous year’s allocation. This funding will support approximately 42 schemes directly targeting child development, including initiatives aimed at improving education, healthcare, and nutritional standards for children across the state.
Overall, the budget reflects a comprehensive approach to state development, with a strong emphasis on ensuring that both social welfare and economic growth go hand in hand. The Finance Minister also detailed the significant allocations for various sectors, including ₹37,884 crore for general development, ₹62,840 crore for the social sector, and ₹44,675 crore for economic sector development. These investments will contribute to improving the quality of life for residents and ensuring that the benefits of growth are shared across all sections of society.
A critical element of the budget’s vision is the state’s strategic focus on inclusive growth. The budget allocates substantial funds for rural development, employment generation, and infrastructure projects in the underserved areas of the state. Jharkhand’s government aims to reduce regional disparities and ensure equitable growth by addressing the specific needs of marginalized communities. The social sector allocations in the budget, amounting to ₹62,840 crore, reflect this commitment to reducing poverty and promoting social welfare through various schemes targeting education, healthcare, housing, and employment.
In terms of fiscal health, Jharkhand has managed to keep its fiscal deficit under control. The projected fiscal deficit for 2025-26 stands at ₹11,253 crore, which represents 2.02% of the state’s estimated GSDP. This fiscal discipline is a positive indicator of the state’s ability to manage its resources effectively while maintaining a focus on growth. The projected GSDP for 2025-26 is ₹5,57,101 crore, with the state’s overall economic growth expected to be 7.5% at constant prices and 9.9% at current prices.
The Finance Minister’s speech concluded with a positive outlook for Jharkhand’s future, reinforcing the state’s efforts to maintain a balance between economic growth and fiscal prudence. With the 2025-26 budget, Jharkhand aims to achieve sustainable development, improve its financial standing, and provide better opportunities for its people. The state government remains committed to ensuring that economic growth is inclusive, equitably distributed, and benefits all sections of society.