The Hemant Soren Government in its fiscal policy and mid-term fiscal plan has stressed over generating productive capacity of the economy. Goals of fiscal discipline would be achieved alongside capital expenditure and developmental activities pertaining to social and economic services.
The policy presented in the Assembly on Monday also talked about priorities of the Government regarding 11th Five Year Plan of Jharkhand which emphasises on improving the quality of life of the people by providing access to basic facilities such as health, education, safe drinking water, sanitation etc.
“For the year 2011-12, 37.03 per cent of the total expenditure was meant for the social service sector, followed by rural development (20.96 per cent), transport (13 per cent), and agriculture and allied activities (6.79 per cent). This reflects an increasing focus of the State Government on social sectors and sectors pertaining to rural development, agriculture and transport,” says the fiscal policy strategy statement.
Expenditure for agriculture and allied activities remained Rs 685.71 crore for 2011-12 that was merely Rs 376.7 crore during 2008-09. The Government has also boasted on its fiscal performance. Fiscal deficit has come down from its peak level of Rs 5,603 crore in 2005-06 to Rs 3,012.16 crore in 2009-10, Rs 2,111.36 crore in 2010-11 and Rs 1,925.17 in 2011-12.
As proposition of State’s GSDP, this has come down from 10.21 per cent in 2005-06 to 1.91 per cent in 2010-11 and 1.55 per cent in 2011-12. The revenue account is showing surplus trend with highest level of Rs 1,194 crore for the year 2007-08. It has come down to 1.15 per cent of GSDP during 2011-12.
“The fiscal strategies followed since 2006-07 involving reforms in the areas of commercial taxes, introduction of VAT, emphasis on resource mobilization in the form of non-tax revenues, have all favourably worked towards improved situation of the State,” reads the report. Total GDSP in comparison of Rs 57,848 crore in 2005-06 went up Rs 99,758 crore in 2012-13 or growth of 9.12 per cent. The primary sector which includes agriculture and animal husbandry, forestry, fishing, mining and quarrying and contributed to about 30 per cent of GSDP in 2000-01, declined to 24.82 per cent in 2011-12. Contribution of the secondary and tertiary sectors has gone up during the decade.
“The growth trend and its composition provide a rough road map for policy as well as pointing out opportunities for growth that can be obtained by focusing on the primary and tertiary sector. The growth of the secondary sector definitely provides key pointers for the State in its drive towards industrialisation and this has also led to revenue buoyancy and increased fiscal space for the Government,” says the report.
It at the same time also sees considerable scope for growth of the primary sector as well. Agriculture sector is marked by significant variability in production and productivity in different years, requiring the State to make investments in irrigation and farm technology.