Jharkhand — the Rs1,29,225 crore economy now in the comparison to Rs59,758 crore in 2004-05 — is expected to grow at the rate above 8.83% in the year ending in March. It has also some healthy indicators required for any economy for a ‘take-off’.
The economic survey for 2015-16 presented in the State Assembly on Thursday suggested that the Gross State Domestic Product (GSDP) at the base year 2004-05 would rise at 8.83 per cent during the fiscal. The sign is quite healthy considering over 8 per cent growth the GSDP has recorded in three consecutive years and reach somewhere near Rs1,29,225 crore.
The show is based on robust revenue receipts or income the State has generated over the last year. In comparison of last year, the tax and non-tax receipts of the State during 2015-16 are estimated to have increased by 44.97 per cent against the rate of expenditure — 32.37 per cent. Also, total receipt in 2014-15 was Rs38,278.07 crore against expenditure of Rs41,921.38 crore. The receipt is expected to go up to Rs55,492.95 crore.
Higher growth in receipt than the growth in expenditure has helped in containing the fiscal deficit to Rs5,157.47 crore; or merely 2.28 per cent of the total GSDP and well within the scale set under the FRBM Act. The most important component of the economic health was 4.28 per cent a year ago.
Revenue deficit (excess of revenue expenditure over revenue receipts) has been less than one per cent of the GSDP which is a sign of the economy having surplus in its account for spending on social and economic fronts and for greater plan expenditure.
Coming on to the expenditure front, both Plan and Non-plan have recorded increasing trend. Moreover, the most heartening to note that annual growth rate of non-plan expenditure remained just one per cent whereas 71 per cent growth rate was recorded for Plan. Also, it is for the first time that the Plan expenditure is estimated to be more than the Non-plan which would moderate the fiscal deficit even further, predicts the economic survey.
Economic Survey paints rosy picture Besides, during 2014-15, the State allocated the highest 37.47 per cent on social services followed by 33.41 per cent on general services. Share of economic services and social services on total revenue expenditure witnessed a growth of 6.54 per cent and 2.47 per cent, respectively while the share of social services declined by 9 per cent in comparison to 2013-14.
At the same time total debt on the State has reached Rs 48,788 crore with RBI lending Rs 5350 crore. Though the State has managed to keep its borrowing below the ceiling, total debt has increased by 15.89 per cent in 2015-16 and expected to grow further by 11.98 per cent in the coming fiscal to fund pace of its growth. Per capita income projected to be Rs 33260 in 2015-16 and with the growth rate of 5.47 annual which is higher than the national average.
However, industry remained the black spot for economic growth. Except for 2007-08 and 2010-11, its growth rate remained very low. In last 11 years, the sector grew at 4.22 per cent average on year to year basis and during the four years it has been in negative. Survey cites low manufacturing growth and poor gas, electricity and water supply as the reasons behind.