Withdrawal curbs fuel treasury crisis row in Bihar; RJD alleges bankruptcy, NDA rejects claims
Patna, Feb 23 (IANS) The Chief Minister Nitish Kumar-led Bihar government has tightened restrictions on treasury withdrawals exceeding Rs 1 crore, making prior permission mandatory. The decision, taken ahead of the March closing of the 2025–26 financial year, has triggered a fresh political confrontation, with the Opposition alleging a severe financial crisis and the ruling alliance dismissing the claims as baseless.
Reacting sharply to the decision, Ranvijay Sahu, General Secretary of the Rashtriya Janata Dal (RJD), accused the government of draining the treasury through arbitrary spending.
Sahu claimed that funds were distributed indiscriminately, including cash assistance to women during elections, leading to a serious financial crunch.
“The government is bankrupt. The treasury is empty. Development work has stalled. There is no money even to pay government employees, and people are crying in distress,” he alleged.
The RJD has repeatedly argued that the withdrawal restrictions are clear indicators of the state’s deteriorating fiscal health.
The ruling NDA, however, strongly refuted the Opposition’s claims.
Madhav Anand, Legislative Party leader of the Rashtriya Lok Morcha, said the state’s financial position remains stable.
“Which department’s salary has been stopped today? Employees are being paid on time. Bihar has a double-engine government and continues to receive central assistance. The Opposition is making childish statements due to a lack of understanding,” Anand said.
He added that employment-related schemes are ongoing and that upcoming recruitments in the health and education sectors would further strengthen the economy.
Madhav Anand also renewed his demand for a review of Bihar’s liquor prohibition policy, arguing that it could help reduce revenue losses.
“The Chief Minister has taken good decisions earlier. We hope he will take the right decision on this issue as well,” he said.
According to official instructions, the Finance Department has set strict deadlines for bill submissions.
Bills pending up to January 2026 must be deposited by February 28, bills due up to February 2026 by March 15, and bills for March 2026 by March 20.
While the government maintains these measures are part of routine year-end financial management, the Opposition insists they point to an underlying fiscal strain.
With the Budget Session underway, the treasury restrictions have emerged as a major flashpoint between the ruling NDA and the Opposition, keeping Bihar’s financial health firmly in the political spotlight.
–IANS
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