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Bihar’s revenue surplus has increased: Survey

The revenue surplus of Bihar has increased from Rs.4,820 crore in 2011-12 to Rs.12,507 crore in 2015-16, the highest so…

Bihar’s revenue surplus has increased: Survey

Representational image (Photo: Getty Images)

The revenue surplus of Bihar has increased from Rs.4,820 crore in 2011-12 to Rs.12,507 crore in 2015-16, the highest so far, according to a latest report of Economic Survey which was tabled in the state assembly on Thursday. The month-long budget session of the Bihar Assembly began Thursday.

As per the report, the revenue surplus has allowed the state government to increase its capital spending by more than Rs.5,800 crore during the year.

“This has also allowed the state government to limit its Gross Fiscal Deficit to only 2.9 percent of the new estimate of the GSDP well within FRBMA limits,” the report claimed.

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The reports also states that the revenue receipts of the state increased by Rs.17,706 crore of which Rs.16,659 crore came from increase in tax revenue alone. During the five year period from 2011-12 to 2015-16, the own tax revenue of the state government grew from Rs.12,612 crore to Rs.25,449 crore, implying a high annual growth rate of 19 percent.

It further states that of the total capital outlay of Rs.23,966 crore in 2015-16, Rs.17,609 crore (73 percent) was spent on economic services, Rs.2,740 crore (11 percent) on social services and rest Rs.3,617 crore (15 percent) on general services.

The report stated that the total development expenditure of the state government including capital outlay stood at Rs.78,077 crore in 2015-15 which is about 70 percent of the total expenditure as compared to 68 percent in 2014-15.

“The government is committed to maintain a high growth rate in in development expenditure, both in revenue and capital account,” the report stated.

Report further stated that the development of the infrastructure sector has been a priority area for the state government and it has enhanced public investment in roads and bridges. It said the investment in roads has increased nearly three folds from Rs.2,696 crore in 2007-08 to Rs.7,696 crore in 2016-17, indicating an annual growth rate of more than 10 percent. In 2015-16, the expenditure on roads constituted 16.4 percent of the expenditure of the state government on economic sectors, 7.7 percent of development expenditure and 1.5 percent of the GSDP of the state.

As per the report, the number of registered motor vehicles in Bihar has been increasing rapidly at an annual rate of 15.4 percent during the past five years. It said there has been significant improvement in power availability as well adding the poverty ratio in Bihar was reduced by 20.7 percentage points between 2004-05 to 2011-12.

“It is heartening to note that the reduction in poverty ratio in rural areas of Bihar was higher than the urban areas,” the report revealed.

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