New Delhi, Nov. 14 -- Bihar's next government, likely to be led by the National Democratic Alliance (NDA) which held a comfortable lead on Friday afternoon, will take office amid tightening fiscal constraints that sharply limit its ability to deliver on expansive election promises such as 10 million jobs and seven new expressways.

The state's economic situation poses a serious challenge. Its revenue base, at Rs.2.4 trillion to Rs.2.6 trillion, leaves little room for new spending. The fiscal deficit is already pressing against the Centre's 3% cap, while nearly 60% of all revenue receipts are pre-committed to salaries, pensions and interest payments. This severely restricts room for discretionary spending on new welfare schemes, government...