Bihar's economy has increased from Rs 2.47 lakh crore in 2011-12 to Rs 8.54 lakh crore in 2023-24

Patna: Bihar Deputy Chief Minister Samrat Choudhary on Friday said the size of the state's economy at current prices has increased 3.5 times, from Rs 2.47 lakh crore in 2011-12 to Rs 8.54 lakh crore in 2023-24. Choudhary who holds the Finance portfolio tabled the Bihar Economic Survey report for 2024-25 in the state assembly on the opening day of the budget session on Friday. "Bihar has witnessed significant economic growth over the last two decades, resulting in notable improvements in several socio-economic indicators. The size of Bihar's economy at current prices has increased 3.5 times, rising from Rs 2.47 lakh crore in 2011-12 to Rs 8.54 lakh crore in 2023-24", he said. "According to the latest available estimates, the Gross State Domestic Product (GSDP) of Bihar for the year 2023-24 is estimated to be Rs 8,54,429 crore at current prices and Rs 4,64,540 crore at constant (2011-12) prices. In the fiscal year 2023-24, tax revenue amounted to Rs 1,61,965 crore, making it the most significant component of revenue receipts", he said.

The share of tax revenue in total receipts increased from 75.3 per cent in 2019-20 to 83.8 per cent in 2023-24, he said, adding that in 2023-24, grants-in-aid represented 13.5 per cent of total receipts, totalling Rs 26,125 crore, while non-tax sources contributed 2.7 per cent, amounting to Rs 5,257 crore. Bihar registered the third highest growth (7.6 per cent) in transport and communication sector during 2011-24, after Uttar Pradesh (10.1 per cent) and Karnataka (7.7 per cent) among the major states of India, said the DyCM. "Fiscal indicators suggest that Bihar's state finances are sustainable, flexible, and not at risk, considering the current level of expenditure. Overall, the allocation of receipts and expenditures by the state government for 2023-24 demonstrates prudent fiscal management, highlighting support for the state's long-term economic growth", said the report. As far as agriculture and allied sectors are concerned, the report says, "Rice in kharif and wheat in rabi constitute the primary crop cycles in Bihar. Between 2022-23 and 2023-24, rice and wheat production have increased by 21.0 per cent and 10.7 per cent, respectively. Furthermore, between 2020-21 and 2023-24, maize production has increased by 66.6 per cent. "In horticulture, between 2022-23 and 2023-24, the total mango production has increased by 9.7 per cent. The area under litchi has been continuously expanding in Bihar. Between 2022-23 and 2023-24, the area of litchi orchards has increased by 6.0 per cent, whereas the total production has increased by 11.7 per cent," the survey report said.

Construction activities grew at the rate of 22 per cent between 2021-22 and 2022-23 in the state. It contributed 50.2 per cent of the GSDP of the secondary sector, followed by manufacturing. In 2022-23, the manufacturing sector contributed 37.0 per cent of the GSDP of the secondary sector, it said. As far as industrial growth is concerned, it said, "The State Investment Promotion Board (SIPB) has received 3,752 investment proposals (till September 2024) amounting to Rs 75,293.76 crore. In 2023-24, the total amount of proposed investments was Rs 5,642.57 crore from 706 projects. The total investment in 769 functioning units was Rs 8,464.35 crore, and they generated employment for 31,749 workers. The total investment in industries increased by 3.5 times between 2022-23 and 2024-25 (up to September 2024). Micro enterprises have attracted six times more investment in 2023-24 than that in 2022-23." "In the power sector, the state recorded an energy surplus of 4034 MU in 2022-23. The peak demand increased by almost 1.4 times during 2017-18 to 2023-24, while power supply also increased by 1.5 times during the same period. Investments in the social sector lead to broader benefits for the economy. In the last 18 years, the expenditure on social services in the state has increased by 13 times between 2005-06 and 2023-24," it said. The contribution of the forestry and logging sector in the Gross State Value Added (GSVA) at current prices grew by 10.7 per cent from Rs 4,187 crore in 2011-12 to Rs 13,549 crore in 2023-24, Choudhary said.