The Jharkhand Economic Survey laid out by the Government in the State Legislative Assembly on Monday portrayed a dynamic picture of the State’s economy mentioning that Jharkhand is on the track of achieving high growth rate with several economic indicators of development showing commendable progress.
The survey says that after the drought of 2015-16 the State economy was witnessing the phase of high growth rate. The Average Annual Growth Rate (AAGR) for the last three years (2016 to 2018) has been 8.2 per cent. While the Gross State Domestic Product (GSDP) growth rate in the year 2017-18 remained 6. 7 per cent, it is estimated to grow at 6.8 per cent in the financial year 2018-19. Further, according to the survey, the real GSDP of Jharkhand is estimated to grow by 6.8 per cent and the nominal GSDP by 10.4 per cent in this financial year (2018-19). The per capita GSDP at constant prices in the last three years (2016-17, 2017-18 and 2018-19) has grown at 9.4, 5.0 and 5.1 per cent respectively. The average growth rate between the years 2011-12 and 2018-19 seems to be 5.8 per cent per annum. This is because of low growth rates experienced in the years 2013-14 and 2015-16.
The survey further says that according to the New Monetary Policy Framework, has helped in the moderation of the inflation rate and keeping it within control. “For the last three years, the inflation rate has also remained in control within the permissible level of the new monetary policy framework of 4 +/- 2 per cent. The average rate of inflation in the financial year 20l5-16 was 5.3 per cent and in the financial year 2017-18 it was 3.9 per cent. In the year 2018 -19 it is estimated to be 3 per cent,” says the survey report.
According to the survey the tertiary sector has witnessed the fastest growth, while agriculture, forestry and fisheries have registered slowest growth in the State’s economy. Though the manufacturing sector has performed well, the construction and electricity, gas, water supply and other utilities’ sub-sectors -the other constituents of the industrial and secondary sectors have not performed so well.
Notably, the increase in expenditure in the State has been financed by a matching increase in its receipts. The total receipt of the State has increased at an average annual rate (CAGR) of about 17 per cent between 2011-12 and 2017-18. Both the revenue and the capital receipts of the State have increased over a period of time. While the revenue receipt has increased by about two and a half times the capital receipt has increased by about 4 times between 2011-12 and 2017-18.
Also, according to the survey, the budget estimates of 2018-19 shows a decline in the fiscal deficit of to 2.61 per cent of the GSDP, which is well within the limits of FRBM targets.
Talking about the survey, noted economist Harishwar Dayal today said that the growth rate of the State has been stable and sustainable. “In the last financial year the growth rate was 6.7 per cent and now it is expected to be at 6.8 per cent. Also the growth is not only in some specific sectors but is extensive,” said Dayal.
“The agriculture growth rate of the State’s economy has been stable at 3.4 per cent in the past two years and the good impact of it is that the productivity of many agricultural produce has increased. The economic health of the State is good and this means that there will be a dynamic and ambitious Budget for the next financial year,” he added.