India, Oct. 25 -- Elections In India are freebies time, time for assurances for draining of the exchequer by the contesting parties. All parties have now perfected the art, making a mockery of the Election Commission's advisory that they disclose the "financial implications of promises made in the election manifesto and the ways and means to finance them."

First let us take a brief look at Bihar's public finance. With only 28 per cent of revenue coming from its own resources, Bihar remains heavily dependent on central transfers. It has not recovered from the loss of revenues from excise and sales tax on alcohol after prohibition was imposed in April 2016, and its tax: GSDP ratio dropped from 6.9% then to only 5.7% in FY2024. Its fiscal d...