Bihar Seeks ₹12,000 Crore Loan from RBI to Clear Pending Pensions

Bihar has approached the Reserve Bank of India for a loan of ₹12,000 crore to address its financial constraints. The funds are primarily intended to clear pending social security pensions, including payments for the elderly, widows, and persons with disabilities, which have been delayed for the past two months.

Officials indicated that the first instalment of ₹4,000 crore is expected by the end of April, with the remaining amount likely to be disbursed by June 2026.

Pension Delays and Welfare Commitments

The state government is facing mounting pressure due to pending pension payments for March and April. Over one crore beneficiaries depend on these schemes. The financial burden has increased significantly after the pension amount was raised from ₹400 to ₹1,100 ahead of the previous Assembly elections, resulting in a monthly outflow of around ₹1,150 crore.

Additionally, the government recently transferred ₹18,100 crore to over 1.81 crore women beneficiaries under the Mukhya Mantri Mahila Rozgar Yojana, further straining the state’s finances.

Rising Debt and Fiscal Pressure

Bihar’s total debt and liabilities have crossed ₹3.70 lakh crore and are expected to exceed ₹4 lakh crore by the end of 2026. The state is projected to pay nearly ₹40,000 crore in interest during the year, highlighting the growing fiscal pressure.

The financial strain has also impacted development projects and other schemes such as student credit initiatives, which are expected to be supported through the proposed loan.

Conclusion

Bihar’s move to seek a ₹12,000 crore loan highlights the challenges of balancing welfare commitments with fiscal discipline. While the funds are expected to provide immediate relief by clearing pending payments and supporting development, the rising debt levels underline the need for sustainable financial planning in the long term.

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