The Planning Commission has approved a Plan size of Rs 10,200 crore for the State for the next financial year. This is the second year in a row that Bihar's approved annual Plan has been bigger than what had been proposed. It shows an increase of 23.63 per cent over the last Plan (which was of Rs 8250 crore) and roughly 220 per cent of the annual Plan size for 2005-06.

The approval came during Chief Minister Nitish Kumar's meeting with Planning Commission Deputy Chairman Montek Singh Ahluwalia in New Delhi.

Expressing happiness over the allocation, Nitish said, "Development in Bihar is taking place at a fast pace. If we continue to get the Centre's support, we will soon be able to improve and strengthen basic facilities such as power, roads, water, education, and law and order. The budget proposals focus on infrastructure, flood control, irrigation, roads and power."

The Chief Minister added that the "State would be spending Rs 2399 crore on roads and transport, Rs 816 crore on education, Rs 962 crore on rural development and Rs 851 crore on power."