Bihar clocks better medium term growth than natl growth rate

Bihar has registered a medium term growth rate of 7.6 per cent for Gross State Domestic Product (GSDP) from 2011-12 to 2015-16 against the national growth rate of 6.8 per cent.

This has largely been fuelled by the growth of service sector in the state.

Tabling the economic survey on the first day of the Budget session in the Assembly, state Finance Minister Abdul Bari Siddique said that Bihar is one of the fastest growing state in the country despite the Central Statistical Organisation (CSO) releasing a new series of GSDP with 2011-12 as the base year for estimation of both national and state incomes.
 

"Bihar is one of the fastest growing states in India. The growth momentum of Bihar's economy, experienced in the recent decade, was continued in the last year also," Siddiqui said.

"Despite the change in the base year, our growth rate is better than the national economy," he added.

The GSDP of Bihar at constant (2011-12) prices in 2015-16 was Rs 3.27 lakh crore and Rs 4.14 lakh crore at current prices, the survey said while putting the per capita income at Rs 36,964 in 2015-16 at current prices.

The change in the pattern of contributions of various sectors (primary, secondary and tertiary) in the GSDP shows that service sector or the tertiary sector has become the mainstay of the state's economy.

Between 2011-12 and 2015-16, the share of primary (agriculture) sector has fallen by 7 percentage points from 25.2 to 18.3 per cent while the contribution of tertiary (service) sector has jumed by 6 percentage points from 54.3 to 60 per cent, he said.

The secondary (industry) sector, whose share in GSDP was 18.3 per cent in 2011-12, witnessed a minor decline and was 18.1 per cent in 2015-16, the minister said.

During the five year period from 2011-12 to 2015-16, the state's own tax revenue grew from Rs 12,612 crore to Rs 25,449 crore implying a high annual growth rate of 19 per cent, he said.

Siddiqui said that the state's outstanding public debt was Rs 88,829 crore in 2015-16 implying a debt : GSDP ratio at 21.5 per cent which is well below the limit of 25 per cent as specified by Finance Commission.