Bihar deputy CM seeks tax-payers' consent to end free power scheme

Deputy Chief Minister Samrat Choudhary has raised the possibility of allowing Bihar's income tax-paying citizens to voluntarily withdraw from the state's free power scheme, a move that underscores the financial strain on state finances. The suggestion indicates a willingness to explore alternative approaches to managing the electricity subsidy program, which has become one of the most significant welfare expenditures in the state budget.

The free power scheme has been a cornerstone of Bihar's welfare policies, providing electricity at no cost to certain categories of consumers. However, the initiative has placed considerable pressure on the state exchequer, with mounting subsidy bills straining available resources for other development priorities.

Choudhary's proposal appears to target higher-income households whose members file income tax returns, seeking a differentiated approach to subsidy distribution. By offering tax-paying citizens the option to opt out, the government may be attempting to redirect limited resources toward lower-income beneficiaries who are more dependent on subsidized power.

The proposal reflects broader challenges facing Bihar's fiscal management, with policymakers balancing the political popularity of welfare schemes against the financial sustainability of state programs. Any formal policy changes would likely require legislative approval and could trigger significant political debate given the electoral sensitivity of power subsidies across South and Southeast Asia.