According to the Economic Survey of 2020-21 presented in the Bihar Legislative Assembly, the real economic growth rate of the state in 2019-20 was 10.5 percent in the state, which is higher than the 4.2 percent growth recorded in the country’s gross domestic product (GDP) that year. The GDP of the state of Bihar at constant prices increased by 9.3 percent in the year 2018-19. Addressing reporters after presenting the 15th Economic Survey 2020-21 in the Legislative Assembly, Deputy Chief Minister cum Finance Minister Tarkishore Prasad said that the state’s economic growth in 2019-20 compared to the growth rate of 9.3 percent in the year 2018-19 in Bihar at a stable price Growth was 10.5 percent, which is higher than the growth rate of the national economy.
He said that the Kovid 19 epidemic has affected the whole world and hence it has a negative impact on the Indian economy and Bihar as well.
The survey which consists of 13 chapters in total, each chapter contains a section on the initiatives taken by the government during Kovid 19. Tarkishore said that the lockdown in view of Kovid 19 has resulted in significant growth in tertiary sector in primary, second and tertiary despite negative impact of restriction on production activities and reduction in demand.
Tertiary (service sector) in state GDP increased from 57.3 percent in 2013-14 to 60.2 percent in 2019-20. He said that between 2013-14 and 2019-20, the share of two sub-sectors in tertiary sector has increased significantly in gross state value addition. The share of road transport increased from 4.4 to 5.9 percent and that of other services from 10.5 percent to 13.8 percent. Tarkishore said that the state has consistently shown fiscal prudence for more than a decade and financial indicators suggest that the gross fiscal deficit was 2.0 per cent of the gross state domestic product in the fiscal year 2019-20 and the surplus in revenue accounts Remained intact
The primary deficit also decreased in 2019-20 compared to the previous year. He said that in 2019-20, the gross state domestic product of Bihar was Rs 6,11,804 crore at the current price and Rs 4,14,977 crore at constant price in 2011-12. Principal Secretary, Finance Department, S Siddharth made it clear that the figures given in the Economic Survey for 2020-21 are for the financial year 2019-20 although some figures have also been taken till September 2020.
Due to the V-shaped growth in the state, it is difficult to tell about the growth rate of the current financial year. The growth rate for the current financial year 2020-21 will be released separately later. Siddharth said that Bihar has been a revenue surplus state since 2004-05. This revenue surplus of the state government remained in 2019-20. The state government’s borrowing in percentage of state domestic product has increased from 3.6 percent in 2018-19 to 4.8 percent in 2019.20.
The survey said that the gross fiscal deficit in 2019-20 was 2.0 percent of the gross state domestic product, which is lower than the 2.7 percent in 2019-19. Agriculture and allied sector accounted for 18.7 percent of the total GDP in 2019-20. Bihar recorded a record production of 163.80 lakh tonnes of food grains during this financial year.
Regarding labor, planning and migration, the survey said that 57.6 per cent of male workers were self employed in Bihar, while the proportion of regular and paid male workers in Bihar was just 9.7 per cent, the lowest among all states of the country.