|Bihar boasts of 14.8% growth in 2010-11|
|Thursday, 23 February 2012 17:46|
PATNA: Bihar accelerated its growth rate to 14.8% in 2010-11 but still continued to be at the bottom of the pecking order in terms of per capita income in the country.
This was the highlight of the Economic Survey 2011-12, which was tabled in the state legislature on Wednesday by deputy CM Sushil Kumar Modi, who also holds the finance portfolio. The state's economy grew at an annual rate of 11.36% between 2004-05 and 2010-11, riding on substantially higher public investment.
Yet, the state's per capita income at current prices stood at 16,592 during 2011-12, which was nowhere near the national average of 46,492. "The momentum of the growth has to be sustained for several years to close the gap between Bihar and the national average," said Modi.
Highlighting the results of the governance and fiscal management, he said the revenue surplus of state increased from 2,498 crore in 2006-07 to 6,272 crore in 2011-12. The capital outlay increased steadily from 5,211 crore to 11,448 crore during this period while development expenditure on social and economic services increased from 17,000 crore to about 43,000 crore. "The gross fiscal deficit has been 2.43% in the budget estimates of 2011-12, which is lower than the 3% limit fixed under the Fiscal Responsibility and Budget Management Act," the deputy CM said.
Modi said between 2004-05 and 2010-11, the sectors reporting a growth rate of more than 15% were manufacturing (23.30%), construction (19.61%), communications (27.23%) and trade, hotels and restaurants (20.22%).
The survey report indicated a phenomenal fivefold increase in registration of new vehicles from 80,000 during 2005-06 to 3.87 lakh during 2010-11. Similarly, the number of mobile phone connections in the state increased to 4.48 crore in 2010-11 compared to 42.14 lakh in 2005-06.
The report also highlighted steady upward trend in per capita development expenditure (PCDE) during 2001-02 to 2010-11. From 930 in 2001-02, the PCDE went up to 3,467 in 2010-11, implying an annual growth rate of 17%. During the period, the country's PCDE grew at an annual rate of 13.6%. "The share of social sector spending in the total budget of Bihar increased from 18.9% in 2001-02 to 31.9% in 2010-11," Modi said.
"There are, in all, 36 large-scale units in Bihar besides six such units under the central sector. A total of 1.89 lakh medium, small and micro units were set up in the state till December 2011, an increase of around 60% over the year 2000. The highest increase of about 62% was noticeable in tiny and micro sector followed by 58% in artisan-based units. The State Investment Promotion Board has approved 603 proposals till date involving an investment of over 2.48 lakh crore and employment to 1.85 lakh persons," the report said.
On the power front, however, the situation remains critical. Bihar has the lowest annual per capita consumption of electricity at 122.11 kWh against the national average of 778.71 kWh. Up to January last, a total of 17,363 villages and 19.67 lakh BPL families were connected to the grid under the Rajiv Gandhi Rural Electrification Scheme, the report said.
Growth rate: 14.8%
Per capita income: 16592
Mobile phone connections: 4.48 crore
Vehicles registered: 3.87 lakh
Literacy rate: 63.8%
Road length increase: 119%
Villages electrified: 17,363
Source: The Times of India
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