Cool Bihari

Sunday, January 03, 2010

Bihar's Growth Story : The Road Ahead

For many, the news of Bihar’s remarkable turnaround growth of 11.3%, second highest in the country has come as a big surprise. Surprising as it may sound, it was expected growth for those who have been following the plethora of slow but steady fundamental changes which Bihar economy has been undergoing over the past few years. Undoubtedly, the leadership of the state deserves all the due credit and the much maligned bureaucracy also needs to be appreciated for the remarkable turnaround.

The latest CSO data shows that in the five-year period between 2004-05 and 2008-09, Bihar's GDP has grown by a stunning 11.03%.In this period, Bihar - traditionally a laggard state that actually saw a 5.15% negative growth in 2003-04 - is the second fastest growing state, just a shade behind Gujarat's well-publicized growth of 11.05%. Last 3 years the growth has been at around 17-18%.

In my view, this is just tipping point of the much awaited change and thankfully the state didn’t miss its last chance to make up for the colossal losses of the past. Bihar’s GDP in real numbers is still one of the lowest in the country and there is much effort needed to give the state its due which has been denied so far. The growth has been primarily fuelled by reinstating basic governance model in place and considerable effort of the current administration has been towards doing damage control of the past. The state would have done much better if it hadn’t been for the natural calamities and half hearted support from the central govt for few of its critical projects.

India Today reported on the some of the highs of the year for Bihar.

· Bihar initiative of reserving 50 % seats for women in Panchayat Raj Institutions and local bodies was adopted by the country.

· A large number of companies and private institutions reached Bihar.

· Bihar registered a quantum leap in tourism sector. Bihar Administrative Reforms Mission Society Constituted.

· Bihar's percentage per capita growth of 12.07 per cent is not much behind the all India per capita growth rate of 12.73 per cent.

· According to Bihar economic survey for 2008-09, State has registered impressive growth trends in three sectors in the state - construction (21.53%), communications (16.01%) and trade, hotels and restaurants (12.03%).

· Among all States and union territories, Bihar with a crime rate of 118 stood at 28th position in the country.

· In the education sector Bihar remained a viable centre for quality learning, as the already functional branches of Indian Institute of Technology, Chanakya Law University and Chandragupta Institute of Management-which were established during the earlier years- continued to draw top talents.

· Besides, a panel led by Nobel laureate Amartya Sena is also in the process of setting up an international university at Nalanda. Process is underway to accord the status of central university to Rajendra Agriculture University.

Read detail report here ,also read Patna for Prosperity.

Labels: Amartya Sen, Bihar 2.0, Bihar Economic Development, Bihar Finance, Bihar Govt., Bihar Tourism, Brand Bihar, Nitish Kumar, Urban Reforms

Posted by Ajit Chouhan at 5:51 PM | Permalink | Comments

Wednesday, March 26, 2008

Economic Reforms in Bihar

Bihar government's initiative toward economic reforms seems to have borne fruits, with the state achieving a turnaround in its fiscal position in 2006-07, the Comptroller and Auditor General has said.

In its report for the year ended March 31 last year, tabled by deputy chief minister-cum-finance minister Sushil Kumar Modi in the state assembly today, CAG said there was improvement in the fiscal position in terms of key parameters of revenue, fiscal and primary deficits relative to their values in 2005-06.

The turnaround was primarily due to steep increase in central tax transfers (27.6 per cent) and grants-in-aid (57.4 per cent) from the Centre over the previous year, it stated.

The revenue expenditure, however, hovered around 80 per cent during 2002-07, leaving inadequate resources for expansion of services and creation of assets.

In the revenue expenditure category, non-plan revenue expenditure in 2006-07 was significantly higher than the normative assessment for the state for the year and the salary expenditure, pension liabilities, interest payments and subsidies constituted about 69 per cent of the non-plan revenue expenditure, the CAG pointed out.

Labels: Bihar 2.0, Bihar Economic Development, Bihar Finance

Posted by Ajit Chouhan at 10:53 PM | Permalink | Comments

Sunday, March 09, 2008

Bihar on fast track growth

The World Bank has some encouraging views on the development initiatives in Bihar. World Bank has decided to give 8.77 billion rupees or 225 million U.S. dollars of its development policy loan to Bihar. It’s encouraging to read the positive growth plan which the bank recently published in its report. The report highlights how Bihar’s untapped potential can be harnessed suitably to attain high growth rates.

Bihar already enjoys many natural advantages and opportunities. The River Ganges flows through its heart, bringing much needed water to its fertile farmland, especially during the long dry season. As the birthplace of the Buddha, the state has the potential to become a hub of world class tourism. Gaya already has an international airport, and Nalanda is slated to become a new university, reviving its ancient heritage as a renowned seat of learning. And, Bihar’s people, working in the public and private sectors across the country, are a valuable resource for the country as a whole.

With the stage now set for development, the World Bank has resumed support to Bihar after a gap of many years. A recent project for US$63 million, aptly called ‘Jeevika’, aims to light the spark of empowerment to help rural women start productive new livelihoods. The project will cover 4000 villages in Bihar’s poorest districts. Improving economic opportunities for poor and disadvantaged communities is particularly important in a state like Bihar where more than two thirds of agricultural families have little or no land whatsoever.

As the report rightly says that “Bihar’s journey on the road to development will play a major role in shaping the India of tomorrow.

Labels: Bihar Economic Development, Bihar Finance, World Bank

Posted by Ajit Chouhan at 10:04 PM | Permalink | Comments

Saturday, February 09, 2008

Bihar's new Brand Ambassador

What appeared to be a herculean task few years back is now translating into reality on ground. Bihar’s effort to revive its glory and pride is on fast track with all around development in the areas of education, scientific development ,industrial growth, private and public sector investment.

The Planning Commission recently approved a plan outlay of Rs.13,000 crore for Bihar for 2008-09, which includes additional Central assistance of Rs.100 crore for “projects of special importance” to the State. It was also agreed that on the basis of mid-year performance and absorptive capacities, an additional outlay of Rs.500 crore, in the special package of assistance based on performance, can be included in the Annual Plan for the year 2008-09, taking this to an effective plan size of Rs.13,500 crore.

Planning Commission Deputy Chairman Montek Singh Ahluwalia complimented the Bihar Government on the major initiatives taken towards administrative reforms, decentralisation and simplification of procedures, delegation of powers and also focused attention towards implementation of flagship programmes launched by the Central Government, which has lead to acceleration in plan expenditure.

The state is also getting favourable support from the private players and big business houses have shown great interest in promoting investments in Bihar. Confederation of Indian Industry (CII) president and telecom major Bharti chief Sunil Mittal and Bihar CM Nitish Kumar have identified agriculture and tourism as key sectors for private investment in the state.

"I can say that Bihar is the best place for agriculture and horticulture based industries, there is plenty of potential for investment in this sector," Mittal stated.Mittal, leading a high-powered CII delegation of Eastern India at an interactive session with Chief Minister Nitish Kumar, added that investments in agriculture and horticulture could change the face of the state.He hinted that his group plans to make substantial investment in the food processing and agro-based industries as both have huge growth potential in the state.
"Bihar is a place waiting to happen and from now on I am going to work as the brand ambassador of the state to encourage other industrialists to come and invest in Bihar," Mittal said while describing the changes in Bihar as 'miraculous'

The education system in the state is also seeing marked changes in the prospects as more and more companies are visiting the campuses to hire fresh graduates.NIT Patna has been able to ensure more than 100 per cent placement for its students this year. Each student has been selected for more than one job. NIT director U C Ray said that as many as 26 pre-final year students have been selected for jobs by different multi-national companies. Last year, only 80 per cent students could be provided suitable jobs.

Labels: Agri Business, Annual Plan, Bihar 2.0, Bihar Economic Development, Bihar Finance, Brand Bihar, Campus recruitment in Patna University, Education in Bihar, Sunil Mittal

Posted by Ajit Chouhan at 10:59 AM | Permalink | Comments

Saturday, January 19, 2008

Bihar on accelerated growth track

In the last few years Bihar has seen drastic improvement in the areas fiscal management and revenue collection.None other than the Reserve Bank of India (RBI) governor, Y. V. Reddy, lauded Bihar chief minister Nitish Kumar for “accelerating” the pace of development in Bihar and assured the banking sector’s special attention to it.

“Finance minister P. Chidambaram, too, has signalled for special attention to Bihar in view of its government’s interest in accelerating development here,” Reddy told reporters after meeting Nitish Kumar and senior state officials. The RBI governor, who addressed a bankers’ meeting, said: “We are working on to improve the inter-institutional mechanism and develop co-operation between the banking sector and the state agencies.”

Reddy said the improvement in inter-institutional mechanism will open a “new chapter of co-operation” and collaboration between banks and the state agencies. He added that the challenges before Bihar were “daunting”. “But the RBI would help the state in providing relief to the flood-hit people, ensuring education loans to students and promoting medium and small-scale industries.”

Another indicator of Bihar revived financial system is the latest data on Central Excise tax collection. Bihar figures amongst the top 10 states of the country on the front of central excise tax collection. According to the Patna commissione rate of the central excise, revenue amounting to Rs 3,926 crore is likely to be generated as central excise in the current fiscal (2007-08) from the state.

"The department had collected Rs 2,831 crore till December 31, 2007 and we are likely to cross the target of the current fiscal," said central excise commissioner M S Badhan on Wednesday.

This is not for the first time that the state has generated so much of revenue as the collection in the previous fiscal (2006-07) too was quite healthy with the Patna commissione rate contributing Rs 3,400 crore as central excise.

Labels: Bihar 2.0, Bihar Economic Development, Bihar Finance, Development Projects in Bihar

Posted by Ajit Chouhan at 11:37 AM | Permalink | Comments