Patna, Jul 31: Bihar’s Green Budget has expanded substantially since its introduction in 2020–21, but progress across several key environmental indicators, including renewable energy, waste processing, biodiversity conservation and air quality, remains limited, according to available government and research data.
The state’s Green Budget for the 2026–27 financial year is estimated at around ₹158 billion, nearly three times the allocation made in its first Green Budget. The number of schemes included under the framework has also increased from 96 in 2020–21 to 298 this year.
Despite the rise in financial allocations, environmental outcomes have not improved at a similar pace.Bihar’s energy sector accounts for a major share of the state’s greenhouse gas emissions, with coal-based power generation continuing to play a significant role.
Renewable energy capacity increased from about 376 MW in 2020 to 651 MW in 2025–26, but the growth remains well below the scale required to meet the state’s long-term clean-energy goals.
The Bihar State Pollution Control Board has projected that renewable energy capacity would need to reach 10,000 MW by 2030 and 28,000 MW by 2050 to support a pathway towards net-zero emissions. At the present rate of expansion, the state may remain far below its 2030 target.
Concerns have also been raised over the decline in wetlands and natural water bodies. Bihar had 4,550 wetlands in 2019, while the number stood at 4,526 in 2025. During the same period, the area covered by natural water bodies reportedly declined by more than 16,800 hectares.
Waste management continues to pose another challenge. Bihar generated around 2,272 tonnes of municipal waste per day in 2019, with approximately 51 per cent being processed.
The processing rate improved to nearly 58 per cent in 2021 but subsequently declined, with estimates indicating that only around 30 per cent of waste was being processed in 2025.
Air pollution remains a concern in several urban areas. A 2025 assessment by the Centre for Research on Energy and Clean Air found that PM2.5 levels were above prescribed limits in 20 of the 23 monitored cities in Bihar.
While data from the Bihar State Pollution Control Board indicated a decline in PM2.5 and PM10 concentrations between 2020 and 2025, sulphur dioxide levels increased during the same period.
The state also did not fully utilise funds released under the National Clean Air Programme. Of the approximately ₹3.28 billion made available, around ₹1.98 billion, or nearly 60 per cent, was reportedly utilised.
Experts have said that the Green Budget should now be assessed on the basis of measurable environmental outcomes rather than expenditure alone.They have called for an independent impact assessment to determine whether budgetary allocations are translating into improvements in air quality, renewable energy generation, biodiversity conservation, water protection and waste management.
Experts have also recommended linking the Green Budget more closely with the Output-Outcome Monitoring Framework to improve implementation, transparency and accountability.
Third-party audits of major green projects could help verify whether schemes classified as environmentally beneficial are delivering the intended results.Bihar follows the Rio Marker methodology to identify and classify government programmes according to their contribution to environmental and climate objectives.
Under the system, schemes may be assigned varying levels of green relevance depending on the extent of their environmental component.The Green Budget accounted for about seven per cent of Bihar’s total budget when it was launched in 2020–21.
Its share increased in subsequent years and reached a high of around 12.5 per cent in 2023–24 before declining. In 2026–27, green expenditure accounts for nearly 7.5 per cent of the state’s overall budget.The state has also faced gaps between budget allocations and actual expenditure in some financial years, pointing to possible challenges related to planning, technical capacity and programme implementation.
Bihar is among several states that have adopted green or climate-focused budgeting frameworks. Odisha, Assam, Meghalaya, Uttar Pradesh, Kerala, Rajasthan and Puducherry have also introduced systems to identify and track environmental or climate-related expenditure.
Experts said Bihar’s framework is relatively broad as it covers climate action along with pollution control, biodiversity, water conservation and waste management.
However, they stressed that regular monitoring and independent evaluation would be necessary to determine whether increased green spending is leading to meaningful environmental progress.
