With Gross State Domestic Product (GSDP) to grow at 10.98% (at constant prices) in 2021-22, Bihar’s economy shows strong recovery to rank third among states in terms of post-Covid growth , while it was 8.68%. At the national level, says the Bihar Economic Survey Report 2022-23.
The report was tabled in the Legislative Assembly by state Finance Minister Vijay Kumar Chowdhary on Monday, the first day of the budget session, which will conclude on April 5. The budget will be presented on Tuesday.
This was the 17th report of the Bihar Economic Survey, which was launched by the Nitish Kumar government in 2006-07.
As per estimates, Bihar’s economy will grow at 10.98% in 2021-22, a sharp recovery after a decline of 3.2% in 2020-21 – a year that was affected by COVID-19. The total expenditure of the state government was 1.93 lakh crore in 2021-22, of which 1.59 lakh crore (82.4%) was revenue expenditure. Capital Expenditure increased by 29.4% over the previous year 33,903 crores.
“High growth is a matter of pride for the state and reflects better financial management. Bihar lags only marginally behind Rajasthan and Andhra Pradesh, despite high population density, geographical constraints, poverty and perennial crisis of floods and droughts, and lack of desired support from the Centre. said the minister.
Chaudhary said that per capita income in the state has increased during 2021-23 6,400 to reach 54,383 at current prices. At constant prices (2011-12) it was 34,465. Patna has the highest per capita income 115,239, while Sheohar remained at the bottom with less than Sitamarhi and Araria. 21,000.
GSDP of Bihar is estimated at constant price (2011-12) 428,065 crore for 2021-22, over 385,728 crore in 2020-21.
“The growth story of Bihar is visible in more ways than one. Today Bihar ranks third in terms of road density in the country. Health and education are two major areas in the social sector that touch the lives of every citizen. In the last 16 years, both these sectors have grown eight and 11 times. The story of social and economic empowerment of women in Bihar and the silent revolution through livelihood was also appreciated by Prime Minister Narendra Modi a few years back.
The survey, however, points to a decline in the share of the primary sector from 21.4% in 2020-21 to 21.2% in 2021-22, driven by livestock and fishing and aquaculture, which account for 9.5% and A growth rate of 6.7% has been recorded. respectively. The secondary sector also declined from 19.3% to 18.1% during the same period, while the tertiary sector interestingly saw an increase from 59.3% to 60.7%.
It has been said in the survey that in 2021-22 the state government collected 38,839 crore in revenue from its own sources, while the gross transfer of financial resources from the Central Government was 129,486 crore, including 91,353 crore as the state’s share in central taxes. grant-in-aid from the center and loan of the center to the state was 28,606 crore and 9,527 crore respectively.
The report states that the agriculture and allied sector has grown at a pace of about 5% during the last five years (2017-18 to 2021-22) and overall added 20% to the Gross State Value Added (GSVA) in 2020-21. % contribution.
According to the survey, the primary deficit of the state government has come down from 17,344 crores in 2020-21. 11,729 crore in 2021-22. Similarly, the fiscal deficit has declined from 29,828 crore from 25,551 crore in 2021-22 despite the challenges of the pandemic.
The survey reports that the state is witnessing flight of capital through scheduled commercial banks, whose CD ratio is much lower than the national average. This means that banks continue to collect deposits from the state but are reluctant to extend credit. SBI’s CD ratio among banks is very poor at 36.1% which is much lower than the national average CD ratio of 71.2%.
On the fiscal front, the state has consistently been able to keep the deficit figures within acceptable limits.
The fiscal position has been shown to be in good shape in the Economic Survey. Growth in investment by some industries in the state has also been highlighted, although this appears to be small progress over the years.
