It is almost over a decade now and Bihar continues to be the poorest state with the lowest per capita gross state domestic product (GSDP). This despite consecutive governments announcing economic packages time and again to boost the state?s economy.
Government figures in the 11th Plan document show that Bihar continues to be the state with the lowest per capita GSDP since 1993-94 till 2004-05, while Punjab and Maharashtra managed to garner the highest per capita GSDP.
The state has so far received a total of about Rs 8,225 crore as financial packages from the erstwhile National Democratic Alliance (NDA) and the present United Progressive Alliance (UPA) governments. The NDA government had given a Rs 4,000 crore package in 2003 and the UPA government shelled out Rs 3,225 crore soon after it came to power in 2004.
As government data speaks for itself, it is clear that even if central governments have been giving funds to the state, there has hardly been any improvement in the socio-economic fabric of the state. This could be either because the funds have not been used properly or the state has not received enough money. In a recent interaction with Indian Express, Union rural development minister and Rashtriya Janata Dal leader, Raghuvansh Prasad Singh, had said that during Nitish Kumar?s rule, ??utilisation of funds in Bihar was worse than that in Jharkhand.??
Defending the 15-year regime of Lalu Prasad, Singh had said, ??look at the assistance Bihar received during the period. In rural development alone, Bihar received Rs 600 crore per annum, after Rs 1,800 crore p.a was cut in funds during that period. Bihar lost a large amount of central assistance during the NDA period??.
Claims and counter-claims aside, there is no denying the fact that Bihar has lived too long with the dubious distinction of having too many lows?the lowest per capita productivity in agriculture at Rs 661 against the national average of Rs 2,370, and the lowest investment having a highly adverse credit-deposit ratio of 24.5% against the national average of 53.4%.
Adding to the state?s woes was the formation of Jharkhand as a separate state in November 2000. This left Bihar with 56% of area and 75% of the population of undivided Bihar. As much as 56.5% the population of the left-out Bihar still lives in flood-prone conditions. In addition, the bifurcation resulted in transferring 79% forest area to Jharkhand. Heavy industries like Telco, Tisco and Bokaro Steel also moved to the new state.
Even as the Centre and the state differ with each other regarding funds flow and utilisation, there is one harsh reality that all political stakeholders in the state need to face?that Bihar has the country?s second largest number of poor at 41.4% after Orissa (46.4%). Furthermore, more than half (55%) of the state?s urban population live to tell the tale on just Rs 19 each day.