On one hand, due to global tension, the shadow of inflation is looming over the entire world. In India too, wholesale inflation has increased to 9.87 percent in June, increasing for the 8th consecutive month. But amidst all this, people in Bihar are buying land indiscriminately. Data show that in the last 3 years, there has been an increase in the revenue from stamp duty and registration in the state. The government also hopes that this time its earnings through stamp duty will increase to Rs 10 thousand crores. The market of buying and selling of land and houses seems to be gaining momentum in Bihar. The government has set a target of earning Rs 10,000 crore from stamp duty and registration fees alone in the financial year 2026-27. This is not only much higher than last year’s actual collection, but also shows that the government expects a sharp increase in the purchase, sale and registration of properties in the coming time. With this confidence, on one hand the government is making the registry process completely digital and on the other hand it is preparing to strengthen its revenue by increasing the circle rate and stamp duty. Let us understand the reality through figures.
Bihar government expects a big jump in the income from land and property in the next financial year. In Budget 2026-27, a target has been set to raise Rs 10,000 crore from stamp duty and registration fees. This is about 21 percent more than the revised estimate of Rs 8,250 crore for 2025-26. Whereas in 2024-25, the actual earning from this item was Rs 7,976 crore. This means that a significant increase in this income has been estimated within two years. This goal is possible only when the process of buying and selling of land and property remains strong.
1. Earnings were more than expected
The government’s confidence is not based only on future expectations. The figures of the last financial year also indicate the same. In the budget for the financial year 2024-25, it was estimated to collect Rs 7,500 crore from stamp duty and registration fees, but the actual collection was Rs 7,976 crore. That means the government got Rs 476 crore more than expected and about 6 percent more revenue. It is clear from this that the registration of properties in the state was more than expected and the government got direct benefit from it.
2. Government income will also increase from land
Not only stamp duty, the government’s earnings are also expected to increase from land revenue. A target of Rs 800 crore has been set in the budget for 2026-27, while in the revised estimate for 2025-26 it is Rs 700 crore. That means an increase of about 14 percent is expected. The government had received Rs 571 crore from land revenue in 2024-25. The continuously increasing targets show that the government is working on a strategy to strengthen land-related revenue sources.
3. Registry will be completely digital from August
The state government is also making major changes to make the buying and selling of land easy and transparent. From August, the registry of land, flats and other properties in Bihar will become completely paperless and digital in a phased manner. After this, people will not have to visit registry offices with thick files. This arrangement has been started from Hajipur District Registration Office on 11th July. Under Bihar Registration Rules 2026, in the first phase, 10 registry offices are being made completely paperless. After Hajipur, nine more offices will be connected to this digital system from July 18. The government claims that this will speed up the registration process, increase transparency and also prevent irregularities related to documents.
Increase both circle rate and stamp duty
In order to increase revenue, the government has also made changes in the valuation and fees of properties. Under the new system, the minimum price of land i.e. circle rate in urban areas has been increased by 100 percent. Whereas in rural and peripheral areas the circle rate has been increased by 1.6 times. Along with this, stamp duty has been increased from 7 percent to 8 percent. Buyers will also have to pay 2 percent registration fee as before. This will have a direct impact on the pockets of land buyers. For example, in areas like Raxaul there has been a huge increase in government land rates. That means now the registration will be at a higher price and in the same proportion the government will get more revenue from stamp duty and registration fees.
What is the government’s strategy?
For some time now, the political debate regarding the financial condition of Bihar government has been intense. The opposition has been continuously raising questions on the government regarding fiscal pressure and financial management. In such a situation, the government is trying to strengthen its new sources of revenue. Under this strategy, industrial projects are being promoted to attract investment in the state. Land has been made available on lease to many institutions and companies so that investment can come and economic activities can increase. Along with this, steps like tax collection at Panchayat level, toll system on state highways and increase in land related revenue are also being taken. If we look at the recent decisions of the government, it is clear that its strategy is twofold. On one hand, by making the registry process digital, the aim is to provide convenience to the people, reduce fraud and save time. On the other hand, the aim is also to strengthen the government treasury by taking advantage of increased circle rates, higher stamp duty and boom in the property market.
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