Bihar growth remarkable, says Pranab Mukherjee

Bihar grew at the second fastest rate of 13.06 per cent in 2008-09 despite the global economic meltdown, prompting Finance Minister Pranab Mukherjee to describe it as a "remarkable achievement" in the Rajya Sabha.

However, he added that after that level of growth, the growth rate of Bihar's economyc decelerated to 8.56 per cent in the last fiscal but remained above the national average.

Even when the growth rate of gross state domestic product (GSDP) in Bihar dropped in 2009-10, it was above the national average of eight per cent.

Among 32 states and union territories, NDA-ruled Bihar ranked 16th during the same fiscal.

However, its per capita net state domestic product (NSDP) remained lowest for the last three consecutive financial years at Rs 16,119 in 2009-10, Rs 13,980 in 2008-09 and Rs 11,514 in 2007-08 respectively because of laggard performance in the previous years.

"I do appreciate 13 per cent growth in 2008-09 is a remarkable achievement," Finance Minister Pranab Mukherjee said replying to supplementaries during the Question Hour.

Mukherjee said while there is no provision for providing any special incentives to states which have achieved good economic growth, the Centre has already given a special package to Bihar.Yesterday, he had said that the Centre has given Rs 8,750 crore to Bihar under the special plan.

Mukherjee said the 13th Finance Commission has given increased share in the revenue to states as compared to the 12th Finance Commission.

He said there are a number of factors including low growth rate in previous years besides lack of infrastructure facilities behind low per capita NSDP in some states.