Bihar projected to grow at 10.05 percent in 2010-11

The growth rate for Bihar for 2010-11 is projected at 10.05 per cent, according to the state`s economic survey 2010-11 presented in the state Assembly Wednesday.

Patna: The growth rate for Bihar for 2010-11
is projected at 10.05 per cent, a marginal fall from 11.70 per
cent during the corresponding period previous year, according
to the state`s economic survey 2010-11 presented in the state
Assembly Wednesday.

The economic survey 2010-11 brings out that at current
prices, the GSDP for Bihar in 2009-10 was Rs 1,72,138 crore,
with a per capita income of Rs 17,959 as compared to the Gross
State Domestic Product (GSDP) of Rs 75,608 crore in 2004-05,
with the corresponding per capita income of Rs 8,528, Bihar
Finance Minister & Deputy CM S K Modi said.

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

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

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.