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Bihar to see under 4 pc economic growth during Ninth Plan period

Striven by political instability on the one hand and sluggish economy on the other, Bihar is likely to record unimpressive economic growth during the Ninth Plan period, of which three years remain.

Experts said it would not be more than four per cent, in spite of the increase in Central allocation by more than Rs 70 billion.

This is attributed to non- generation of additional resources and non-availability of required infrastructure for sustained economic growth.

The state's growth rate was less than three per cent during the Eighth Plan. The Centre increased the Ninth Plan allocation by over Rs 70 billion -- from Rs 130 billion in the Eighth Plan to Rs 205 billion.

Yet, the state's economy is set for a downslide, said financial experts and planners, even if the entire plan money were utilised.

A special drive for investment in the private sector along with the Central and state grants to bring the state's economy back on rails is needed, they said.

The state had put up a dismal performance in mopping up additional funds in spite of possessing huge natural resources. It could not generate more than Rs 8 billion against its targetted resource of Rs 54.62 billion in the Eighth Plan, sources add.

Keeping the dismal performance in mind, the state had slashed down the target of resource mobilisation to Rs 28.37 billion for the Ninth Plan.

Efforts to mobilise additional resources had been practically nil since 1988-89. Lower plan expenditure indicated that the state could not arrange for its own share to meet ways and means position.

The state had shown abysmal performance on this front in 1990-91 and 1991-92. It could not generate even a single paisa in 1990-91 against its target to mop up Rs 3.04 billion, sources said.

It generated only Rs 310 million in 1991-92 against its target of Rs 1.41 billion, they added.

Figures available from 1987-88 to 1995-96 revealed that the state could not make full utilisation of annual plan outlay and the fund was either surrendered or diverted to other heads.

Figures of fund utilisation during 1996-97 and 1997-98 were not available with the departments concerned.

In the post-Independence Bihar, it was only during the First and the Seventh Plan periods that the utilisation of funds was more than the plan outlay, facilitating execution of not only different development projects but also recording marked growth in industrialisation, they said.

The state spent Rs 1.76 billion against the approved plan outlay of Rs 640 million in the First Plan and Rs 60 billion against Rs 51 billion in the Seventh Plan.

It could, however, utilise only Rs 1.76 billion against Rs 1.94 billion in the Second Plan, Rs 3.31 billion against Rs 3.37 billion in the Third Plan, Rs 4.79 billion against Rs 5.31 billion in the Fourth Plan, Rs 11.87 billion against Rs 12.96 billion in the Fifth Plan and Rs 19.48 billion against Rs 32.25 billion in the Sixth Plan.

Economic growth plummeted alarmingly in the past ten years. Large industries like Heavy Engineering Corporation, high tension insulator factory, Samastipur Paper Mills, Cotton Mills, Jute Mills and others either wound up their business or were rendered unprofitable, they added.

UNI

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