Nirmala Sitharaman has showered gifts upon Bihar in the 2025 budget, and whatever was left unfinished has now been completed with GST reform.
Initially, Finance Minister Nirmala Sitharaman stated the GST reform aims to benefit 1.4 billion citizens of the country, yet she did not forget to mention that the reforms would benefit the people of Bihar even before Chhath Puja.
The general budget was presented just ahead of the Delhi legislative elections. The announcement of income tax exemption for earnings up to 1.2 million rupees was also perceived as election-centric. It is evident that even at that time, the Union BJP government's Finance Minister Nirmala Sitharaman had her eyes on Bihar elections along with Delhi.
The attempt is to deliver equally thrilling news via GST reform, much like what people used to experience during budget announcements. In such a scenario, where the budget has adopted the shape of an election manifesto, the fresh changes in GST appear as comforting as the budget itself.
These reforms have been implemented right before the Bihar legislative elections, raising the question of whether Nirmala Sitharaman's festival offer can politically benefit the NDA led by BJP.
From Election Budget to GST Reform
In an interview with Aaj Tak, there was an effort to understand from Finance Minister Nirmala Sitharaman whether this GST cut was part of BJP's manifesto for the Bihar elections.
It was difficult for the Finance Minister to openly say 'yes,' so she politically connected it to the entire nation. Nirmala Sitharaman stated, “It's not only for Bihar; it's part of the manifesto for the country's 1.4 billion people.”
Nirmala Sitharaman needed to give a political response while not missing out on the Bihar election context. After all, Assembly elections are scheduled in other states such as West Bengal, Kerala, and Tamil Nadu next year.
When questioned about the election manifesto, Nirmala Sitharaman remarked, “In Bihar... a question is being posed before the people of Bihar... before Chhath Maiya... before Diwali... as directed by the honorable Prime Minister from the Red Fort... Bihar is receiving a double reward.”
And she added swiftly, “...also received by the entire country.”
Delhi Benefited, Now Bihar Awaits
Since seizing power at the center in 2014, BJP has longed to govern Delhi. Numerous experiments were conducted, from fielding the country's first female IPS officer Kiran Bedi to contesting elections in Prime Minister Narendra Modi's name. Ultimately, the victory came in the 2025 elections, and BJP's Rekha Gupta became the Chief Minister of Delhi.
Among various factors contributing to Delhi's victory, the income tax exemption for earnings up to 1.2 million rupees held significance. While success was achieved in Delhi, now BJP is eagerly awaiting Bihar’s turn.
Just as Delhi residents enjoyed tax exemptions, Bihar people are equally experiencing its benefits. Now, only the impact of the latest GST gift remains to be seen.
The budget for Bihar included several more provisions. Noteworthy among them was establishing the Makhana Board in Bihar. Additional announcements included developing greenfield airports in Bihar, Patna Airport, and Behta Brownfield Airport, along with a food technology institute — all gifts enshrined in the general budget.
