Bihar projected to grow at 10.05%

During 1999-00 to 2004-2005,the economy had grown at an annual rate of 3.5 per cent,but it grew at the rate of 10.93 per cent during 2004-005 to 2010-11,he said.

“This is the highest among the growth rates of different Indian states,” he said.

He added since the finalisation of this survey,the Directorate of Statistics and Evaluation,Bihar,communicated a fresh set of estimates of GSDP and NSDP in Bihar,according to which the GSDP at current prices in 2009-10 stood at Rs 1,68,603 crore,with per capita income of Rs 17,590,still one-third of the national average.

Modi,however,said the agriculture sector’s contribution to GSDP decreased to 19 per cent,secondary 17 per cent,construction 11 per cent,transport/storage 6 per cent,trade/hotel 30 per cent and other services contribution was 11 per cent.

“This show substantial diversification towards secondary and tertiary sectors and good for Bihar economy,” he claimed. In 2004-05,the agriculture sector had contributed 26 per cent,secondary 13 per cent,construction 6 per cent,transport and storage/communication contributed 6 per cent,trade and hotel contributed 22 per cent and other services contributed 13 per cent to the GSDP at constant prices,Modi said.

This was made possible because of the state government taking positive steps for increasing the common man’s faith in police and the speedy trial mechanism has been effectively used to expedite convictions,as it rose from 6,839 in 2006 to the total of 54,883 up to November,2010.

The development expenditure on social and economic service also increased from about Rs 11,250 crore in 2005-06,which was 49 per cent of the total expenditure,showing an increase of around three times in 2010-11,which amounted to Rs 35,600 crore.

The non-developmental expenditure increased moderately from about Rs 11,300 crore to Rs 18,100 crore during the same period,the survey said.

The tax revenue of the state government has increased substantially from Rs 13.9 thousand crore in 2005-06 to Rs 34,200 thousand crore in the budget estimates of 2010-11.

The focus of plan expenditure in Bihar has remained on social and economic services during both the 10th and 11th plans.

The plan expenditure in 2005-06 was Rs 4,899 crore which increased substantially to Rs 24,076 crore in 2010-11. Among economic services,the focus has been on the areas of agriculture,rural development,special area programmes,irrigation and flood control,energy and transport.

Incidentally,the non-plan expenditure increased from Rs 17,670 crore to Rs 29,683 crore during the same period due to government’s commitments on salary,pension and debt repayment inherited from the past,it said.

Modi said the state economy is under strain on account of lower devolution on the part of the Finance Commissions over the period.

Bihar’s share reduced from 14.6 per cent under the 11th Finance Commission to 11 per cent under the 12th Finance Commission and successively to 10.9 per cent during the 13th Finance Commission.

This meant a loss of Rs 2,400 crore to the state during the awarded period.