Mahagathbandhan’s Bihar manifesto: Jobs for all families, Free 200 units electricity – Populist economics that outspends the state’s entire budget
On 28th October, Mahagathbandhan, the alliance between RJD, Congress and others, launched its manifesto in Patna for the upcoming Bihar Assembly Elections. The manifesto reads like a wish list drafted without a calculator. At the core of it lies a promise that every family in Bihar will have one member employed in a government job. Though a superficial timeline of 20 months has been given, the alliance has not promised to give jobs to all in 20 months. Patna, Bihar: Mahagathbandhan releases its manifesto for the Bihar Assembly elections pic.twitter.com/w41vP59E6u— IANS (@ians_india) October 28, 2025 According to the 2023 caste survey, there are around 2.7 crore families in Bihar. Even if the alliance were to fulfil half of that, the number would be staggering. At this point, there are around 20 lakh people in government jobs in Bihar. Creating an additional 2.5 crore positions, even at the minimum pay scale of Rs 18,000 per month, would require a monthly outlay of Rs 45,000 crore and an annual expenditure exceeding Rs 5.5 lakh crore. This single pledge alone nearly doubles Bihar’s total 2025-26 budget size of Rs 3.16 lakh crore. Cash allowances that bleed the exchequer Another populist pitch promises Rs 2,000 and Rs 3,000 monthly allowances for every unemployed graduate and postgraduate, respectively. If half of Bihar’s graduates were to rely on this income support, the government would need around Rs 900 crore per month or Rs 10,000 crore annually. Again, this would be additional to the already inflated job promise. Health insurance that duplicates existing national schemes The manifesto also offers Rs 25 lakh health insurance coverage for 94 lakh poor and lower-middle-class families. Though the Centre already provides Rs 5 lakh cover under the Ayushman Bharat scheme, this announcement was made by Mahagathbandhan. A rough calculation based on national claim data suggests that even with modest usage, say 47% of eligible families claiming Rs 12,000 each per year, the state’s burden could exceed Rs 5,000 crore annually. Free power, costly politics The promise of 200 free electricity units per household adds another major strain. Assuming only the 94 lakh poor families avail of it, and with the state’s lowest domestic tariff being Rs 7.42 per unit, Bihar would spend about Rs 1,400 crore every month and Rs 16,000 crore every year. Combined with the jobs, stipends, and insurance plans, the state’s projected financial liability crosses Rs 5.8 lakh crore, almost twice its current budget. Karnataka and Himachal show what follows Similar experiments have recently turned states like Karnataka and Himachal Pradesh into fiscal cautionary tales. The CAG’s 2023-24 report found that Karnataka’s Congress government’s five “guarantee” schemes increased spending by Rs 36,538 crore, about 15% of total expenditure, while revenue rose barely 2%. The fiscal deficit ballooned to Rs 65,522 crore, forcing the government to borrow Rs 63,000 crore from markets. Himachal, too, is now slashing salaries and withdrawing freebies after facing a budgetary crunch. Bihar’s economy can’t afford romantic socialism If implemented, the Mahagathbandhan’s manifesto would leave Bihar financially crippled before any of its promises materialise. Borrowing to fund recurrent expenses could push the state into a debt trap, discourage private investment, and repeat the fiscal chaos witnessed in Congress-ruled states. Grand alliances may survive on grander rhetoric, but Bihar’s finances cannot. Ultimately, these pledges may win applause at rallies, but not in the treasury. The manifesto may be politically loud, yet economically, it is dead on arrival.
On 28th October, Mahagathbandhan, the alliance between RJD, Congress and others, launched its manifesto in Patna for the upcoming Bihar Assembly Elections. The manifesto reads like a wish list drafted without a calculator. At the core of it lies a promise that every family in Bihar will have one member employed in a government job. Though a superficial timeline of 20 months has been given, the alliance has not promised to give jobs to all in 20 months.
Patna, Bihar: Mahagathbandhan releases its manifesto for the Bihar Assembly elections pic.twitter.com/w41vP59E6u
— IANS (@ians_india) October 28, 2025
According to the 2023 caste survey, there are around 2.7 crore families in Bihar. Even if the alliance were to fulfil half of that, the number would be staggering. At this point, there are around 20 lakh people in government jobs in Bihar. Creating an additional 2.5 crore positions, even at the minimum pay scale of Rs 18,000 per month, would require a monthly outlay of Rs 45,000 crore and an annual expenditure exceeding Rs 5.5 lakh crore. This single pledge alone nearly doubles Bihar’s total 2025-26 budget size of Rs 3.16 lakh crore.
Cash allowances that bleed the exchequer
Another populist pitch promises Rs 2,000 and Rs 3,000 monthly allowances for every unemployed graduate and postgraduate, respectively. If half of Bihar’s graduates were to rely on this income support, the government would need around Rs 900 crore per month or Rs 10,000 crore annually. Again, this would be additional to the already inflated job promise.
Health insurance that duplicates existing national schemes
The manifesto also offers Rs 25 lakh health insurance coverage for 94 lakh poor and lower-middle-class families. Though the Centre already provides Rs 5 lakh cover under the Ayushman Bharat scheme, this announcement was made by Mahagathbandhan. A rough calculation based on national claim data suggests that even with modest usage, say 47% of eligible families claiming Rs 12,000 each per year, the state’s burden could exceed Rs 5,000 crore annually.
Free power, costly politics
The promise of 200 free electricity units per household adds another major strain. Assuming only the 94 lakh poor families avail of it, and with the state’s lowest domestic tariff being Rs 7.42 per unit, Bihar would spend about Rs 1,400 crore every month and Rs 16,000 crore every year. Combined with the jobs, stipends, and insurance plans, the state’s projected financial liability crosses Rs 5.8 lakh crore, almost twice its current budget.
Karnataka and Himachal show what follows
Similar experiments have recently turned states like Karnataka and Himachal Pradesh into fiscal cautionary tales. The CAG’s 2023-24 report found that Karnataka’s Congress government’s five “guarantee” schemes increased spending by Rs 36,538 crore, about 15% of total expenditure, while revenue rose barely 2%. The fiscal deficit ballooned to Rs 65,522 crore, forcing the government to borrow Rs 63,000 crore from markets. Himachal, too, is now slashing salaries and withdrawing freebies after facing a budgetary crunch.
Bihar’s economy can’t afford romantic socialism
If implemented, the Mahagathbandhan’s manifesto would leave Bihar financially crippled before any of its promises materialise. Borrowing to fund recurrent expenses could push the state into a debt trap, discourage private investment, and repeat the fiscal chaos witnessed in Congress-ruled states. Grand alliances may survive on grander rhetoric, but Bihar’s finances cannot.
Ultimately, these pledges may win applause at rallies, but not in the treasury. The manifesto may be politically loud, yet economically, it is dead on arrival.
