New Delhi, Nov. 15 -- Dear reader,

Bihar's elections concluded on Friday, with the state's 74.5 million eligible voters giving a clear mandate to the Nitish Kumar-led National Democratic Alliance (NDA) coalition. The NDA was leading on more than 200 of the 243 assembly seats in the states by the time this newsletter was written.

Bihar's next NDA-led government will step in with big promises but very little fiscal room to deliver them. The state's revenues, about Rs.2.4-2.6 trillion, are already stretched, with nearly 60% locked into salaries, pensions, and interest. That leaves little room for ambitious commitments, such as creating 10 million jobs or building seven new expressways. Even recent boosts from the Finance Commission barely ...