RJD’s Tejashwi Yadav Flags ‘Empty Treasury’, Says Bihar on Verge of Financial Collapse

In a sharp critique of the Bihar government, Rashtriya Janata Dal (RJD) MLA Tejashwi Yadav on Wednesday flagged the "financial emergency" in the state while highlighting state cabinet's recent approval of Rs 3,662 crore from the Bihar Contingency Fund to pay out social security pensions for May, June and July.

In an 'X' post, Yadav pointed out that the Bihar Contingency Fund is for meeting government requirements in unforeseen crises, natural disasters, or financial catastrophes, and if the state has to resort to using the Contingency Fund, it can showcase the deep financial crisis in Bihar. 

"Is Bihar on the verge of bankruptcy? Is a state of financial emergency imminent due to the pro-capitalist policies and anti-people decisions of the double-engine government? The financial crisis in Bihar has become so severe that yesterday, the Bihar Cabinet approved the withdrawal of ₹3,662 crore from the Bihar Contingency Fund to pay social security pensions for May, June, and July 2026. The Contingency Fund is used by the government to meet requirements during any unforeseen crisis, natural disaster, or financial catastrophe. When a state has to resort to using the Contingency Fund to pay pensions, one can understand how dire and dangerous the situation has become," said Tejashwi Yadav.

He further mentioned that the opposition had been raising the issue for the past six months related to the overdue payment of salaries of government employees in Bihar for the past four to five months. He alleged that the payment of contractors has been pending for a year. The RJD leader further stated that the work on schemes which were approved in 2023 has not started, adding that due to lack of funds, "Bihar State Crop Assistance Scheme" was also shut down in yesterday's cabinet meeting.

"We have been saying this continuously for 6 months, and it is well known that salaries and pensions for Bihar government employees have not been paid for the last 4-5 months because the treasury is empty. Payments to contractors have remained pending for over a year. Forget about new projects; work on schemes approved in 2023-24 has not even commenced yet, let alone the ill-conceived announcements made in 2025 and 2026. There are massive power cuts. Scholarship money is not being disbursed. The Student Credit Card scheme is stalled. Due to a lack of funds, the long-running "Bihar State Crop Assistance Scheme" was also shut down in yesterday's cabinet meeting," said Yadav.

The Bihar LoP further demanded an explanation from Chief Minister Samrat Choudhary over recent decision to withdraw funds from Bihar Contingency Fund, while considering the financial condition of the state as "alarming."

"The financial condition of Bihar is alarming. Instead of relying on regular budgetary provisions, the decision to withdraw ₹3,662 crore from the Contingency Fund to pay pensions demands an explanation from the Chief Minister: why has the state reached this stage despite having a 'double-engine' government for decades? Instead of promoting unnecessary issues, the inexperienced Chief Minister must immediately address the people of Bihar, who are worried, fearful, and apprehensive about the pathetic financial state of the state," he said.

Read More: ‘Samrat Chaudhary Is a Selected Chief Minister, Not Elected’: Tejashwi Yadav’s Scathing Attack on Bihar CM Amid Rabri House Row