Bihar Govt Concedes Failure On Economic Front
Empty coffers leave little choice for the state government but to come clean on financial mismanagement
The Bihar government has admitted the financial mismanagement in the state and its inability to develop infrastructure facilities and complete ongoing projects.
In a booklet on the state economy, prepared to counter the claims of the striking non-gazetted employees, the government conceded the dismal performance on the economic front. According to the booklet if the interim relief was given to the employees, it would put an extra burden of Rs 803 crore annually on the state exchequer. The government is in no position to part with such a huge amount.
The striking non-gazetted employees are demanding 20 per cent interim relief and pay parity with the central staff.
The booklet gives some revealing statistics on the irrigation front. After reviewing the progress of large and medium irrigation projects that were launched more than two decades ago, the state government has found that these scheme would not be completed even after 10 years due to lack of funds. Work on irrigation projects would require Rs 9,679.19 crore at 1996 prices for completion.
The government has made a provision of Rs 2,721 crore for these projects during Ninth Plan period. This makes it clear that the irrigation projects were unlikely to be completed in the next 10 years.
The performance of the government is equally dismal so far as achieving the plan size was concerned. The booklet shows that till the Sixth Plan, the state was able to spend more than what was allotted to it. Even during the Seventh Plan period, the performance was not bad since the state spent Rs 5,100 crore as against the sanctioned amount of Rs 6,033 crore. The deterioration on this front started from 1990.
During the Eighth Plan, there were cuts of more than 50 per cent in the annual plan outlays. The state spent less than 50 per cent (Rs 5,500 crore) of the sanctioned amount of Rs 13,000 crore for the plan period. This adversely affected the states growth rate which hovered around two per cent during the period.
The states performance on the power front is equally bad. According to the booklet, the total installed capacity of the generating units in Bihar stood at 1500 mw but on average not more than 450 mw were generated. During the past 10 years, no new power project got started in the state.
According to estimates, the state requires Rs 7,000 crore for creating infrastructure and generation of another 1000 mw of power. While the then power minister claimed that all the villages would be electrified by the end of the 20th century, the booklet says that rural electrification work could not be taken up during the past few years since the state government could not clear the dues of Rural Electrification Corporation.
The loan liability of the state government stood at Rs 18,590 crore on March 31. The government had to pledge a bank guarantee of Rs 1,667 crore as interest of the loans. During 1997-98, the amount is likely to reach a staggering Rs 2,229 crore.
However, the striking employees are not prepared to be swayed by the state government propaganda. They were continuing their stir for the eleventh day yesterday.