The growth rate for Bihar for 2010-11 is projected at 10.05 per cent, a marginal fall from 11.70 per cent during the corresponding period previous year, according to the State’s economic survey 2010-11 presented in the Assembly today.

The economic survey 2010—11 brings out that at current prices, the GSDP for Bihar in 2009—10 was Rs 1,72,138 crore, with a per capita income of Rs 17,959 as compared to the Gross State Domestic Product (GSDP) of Rs 75,608 crore in 2004—05, with the corresponding per capita income of Rs 8,528, Bihar Finance Minister and Deputy CM S K Modi said.

During 1999—00 to 2004—2005, the economy had grown at an annual rate of 3.5 per cent, but it grew at the rate of 10.93 per cent during 2004—005 to 2010—11, he said.

“This is the highest among the growth rates of different Indian States,” he said.

He added since the finalisation of this survey, the Directorate of Statistics and Evaluation, Bihar, communicated a fresh set of estimates of GSDP and NSDP in Bihar, according to which the GSDP at current prices in 2009—10 stood at Rs 1,68,603 crore, with per capita income of Rs 17,590, still one-third of the national average.

Mr. Modi, however, said the agriculture sector’s contribution to GSDP decreased to 19 per cent, secondary 17 per cent, construction 11 per cent, transport/storage 6 per cent, trade/hotel 30 per cent and other services contribution was 11 per cent.

“This show substantial diversification towards secondary and tertiary sectors and good for Bihar economy,” he claimed.

In 2004—05, the agriculture sector had contributed 26 per cent, secondary 13 per cent, construction 6 per cent, transport and storage/communication contributed 6 per cent, trade and hotel contributed 22 per cent and other services contributed 13 per cent to the GSDP at constant prices, Mr. Modi said.

This was made possible because of the State government taking positive steps for increasing the common man’s faith in police and the speedy trial mechanism has been effectively used to expedite convictions, as it rose from 6,839 in 2006 to the total of 54,883 up to November, 2010.

The development expenditure on social and economic service also increased from about Rs 11,250 crore in 2005—06, which was 49 per cent of the total expenditure, showing an increase of around three times in 2010—11, which amounted to Rs 35,600 crore.

The non-developmental expenditure increased moderately from about Rs 11,300 crore to Rs 18,100 crore during the same period, the survey said.

The tax revenue of the State government has increased substantially from Rs 13.9 thousand crore in 2005—06 to Rs 34,200 thousand crore in the budget estimates of 2010—11.

The focus of plan expenditure in Bihar has remained on social and economic services during both the 10th and 11th plans.

The plan expenditure in 2005—06 was Rs 4,899 crore which increased substantially to Rs 24,076 crore in 2010—11. Among economic services, the focus has been on the areas of agriculture, rural development, special area programmes, irrigation and flood control, energy and transport.

Incidentally, the non-plan expenditure increased from Rs 17,670 crore to Rs 29,683 crore during the same period due to government’s commitments on salary, pension and debt repayment inherited from the past, it said.

Mr. Modi said the State economy is under strain on account of lower devolution on the part of the Finance Commissions over the period.

Bihar’s share reduced from 14.6 per cent under the 11th Finance Commission to 11 per cent under the 12th Finance Commission and successively to 10.9 per cent during the 13th Finance Commission.

This meant a loss of Rs 2,400 crore to the State during the awarded period.

Mr. Modi said around 13.4 lakh farmers of Bihar got access to Kisan credit card during 2009—10 as against 4.63 lakh in 2004—05.

In absolute terms, total credit flow to agriculture has approximately trebled from Rs 2030 crore in 2004—05 to Rs 7163 crore in 2009—10.

In 2004—5 the food production was 79.06 lakh tonnes which increased to a record level of 122.20 lakh tonnes in 2008—09.

But in 2009—10, it decreased to 105.08 lakh tonnes.

Rice production in 2008—09 was 55.90 lakh tonnes, which dropped to 36.25 lakh tonnes in 2009—10, primarily on account of severe drought conditions in almost 23 districts of Bihar.

But maize production, which was 14.90 lakh tonnes in 2004—05, showed an increasing trend every year since 2006—07 and reached a production level of 17.14 lakh tonnes in 2008—09.

The coverage through the rural pipe water supply scheme has increased from 15 per cent of target in 2007—08 to 36 percent in 2009—10. In 2009—10, 60 percent of the target of replacing hand pumps could be achieved.

At the end of March 2005, the total number of commercial bank branches stood at 3548 which increased to the total of 4156 branches in March 2010.

As on June 2010, the aggregate deposits of all banks in Bihar were Rs 99,636 crore, against a credit of Rs 32,109 crore, giving a CD ratio of 32.23 per cent compared to Rs 46,134 crore in 2005—06 against a credit of Rs 14,808 crore with CD ratio of 32.10, he said.

The economic survey highlighted that the key fiscal indicators point to a marked improvement in the fiscal position of the State government in last five years.

The sustainability parameters has been improving continuously as the revenue surplus of Bihar government increased from Rs 82 crore in 2005—06 to Rs 6557 crore in 2010—11.

The capital outlay increased systematically from Rs 2084 crore in 2005—06 to Rs 10,434 crore in 2010—11. Similarly, the capital receipts increased from Rs 3821 crore in 2005—06 to Rs 6515 crore in 2010—11.

In spite of increase in development expenditure, the state was able to contain the debt liability within the limit.

The debt outstanding was Rs 42.5 thousand crore in 2005—06, which was 52 per cent of the GSDP.

The debt liability increased to Rs 57.7 thousand crore, but as a percentage of GSDP it decreased to 29 per cent.

Similarly, the fiscal deficit decreased from 4.53 per cent to 2.28 per cent during the same period.