Nitish Kumar embarks on his tenth term as Chief Minister of Bihar, facing a familiar yet increasingly complex set of challenges. While he is credited with improvements in governance and infrastructure since first taking office, the state still grapples with persistent issues that demand immediate and sustained attention: job creation, crime, and financial stability.
The Employment Imperative
Bihar's economy struggles to provide adequate employment opportunities for its large and youthful population. A significant portion of the state's labor force migrates to other states in search of work, highlighting the lack of local opportunities. Stagnant exports, a narrow industrial base, and low foreign direct investment (FDI) inflows hinder job creation and economic momentum. The state's participation in global value chains remains negligible, limiting its ability to generate sustainable jobs. While the government has promised to create a large number of jobs, experts emphasize the need for structural reforms to achieve this goal. The focus must be on attracting private capital, developing manufacturing clusters, improving logistics, and fostering export-oriented industries. Agriculture, a mainstay of Bihar's economy, and allied sectors also need attention, along with the growth of the startup ecosystem, and industrial and infrastructural developments. Moreover, it is important to ensure that the youth are aware of the opportunities and provide them with guidance through career counseling centers.
Addressing Crime and Law Enforcement
While Nitish Kumar is credited with ending "jungle raj" in Bihar, crime rates have shown a significant increase between 2015 and 2024. Although murder rates have decreased, the overall crime rate remains elevated. In 2022, Bihar recorded 3.5 lakh crimes, a 23.3% increase from the previous year, in contrast to a national-level decrease. The state has also witnessed increases in violent crimes such as kidnappings and robberies. Land disputes are a significant driver of crime in Bihar, and addressing this issue requires effective land management and dispute resolution mechanisms. Strengthening law enforcement, ensuring quicker trials, and implementing policing reforms are crucial steps to curb crime and maintain public order.
Fiscal Prudence and Financial Stability
Bihar's financial situation remains precarious, characterized by a heavy reliance on central transfers and increasing debt. The state's own tax revenue is low, making it vulnerable to fluctuations in central finances. A Comptroller and Auditor General (CAG) report raised concerns about Bihar's rising debt, which stood at ₹2.85 lakh crore, or 33.42% of its Gross State Domestic Product (GSDP) in 2022-23. The state spends a significant portion of its revenue on interest payments and loan repayments, limiting its ability to invest in development expenditure such as health, education, and infrastructure. To improve Bihar's fiscal health, the government must focus on strengthening its tax collection systems, widening its tax base, and reprioritizing expenditure towards long-term investments. While welfare schemes are important, they should not crowd out essential investments in infrastructure, education, and health. The state government spent only 77.95% of the total budget, surrendering 30.86% of the total savings in the financial year 2022-23, which indicates a need for efficient budget management.
Nitish Kumar's new term presents an opportunity to address these long-standing challenges. By prioritizing job creation, strengthening law enforcement, and ensuring fiscal prudence, the Chief Minister can steer Bihar towards sustainable development and improve the lives of its citizens.
