The growth momentum of the Bihar’s economy, experienced in the last decade, was continued in the recent years also. Last year the Central Statistical Organisation has released a new series of GSDP, with 2011-12 as the base year for estimation of both national and state incomes. The new GSDP estimates also utlises some fresh data sources. According to these new estimates, the medium term growth rate for GSDP (2011-12 to 2015-16) in Bihar was 7.6 percent, compared to 6.8 percent for the national economy. Consequently, the Per Capita Income in Bihar was about 35 percent of the national average in 2015-16, compared to about 33 percent a decade ago. This high growth had obviously impacted the poverty scenario in the state and the poverty ratio had fallen from 54.4 percent in 2004-05 to 33.7 percent in 2011-12. When the next round of poverty estimates will be made available, it is almost certain to record even lower incidence of absolute poverty in Bihar. To supplement the gains from the economic growth, the state government has also initiated a number of welfare measures to improve the standard of living of the population. The main development focus of the state government is now around seven resolves (Saat Nischay) which include — welfare of the youth, women employment, supply of electricity to all households, clean drinking water, road connectivity, toilet facility and higher technical education.
A high level of investment generated vide financial discipline of the government during 2004-05 to 2014-15 has a bearing on the sustained growth rate around 10 percent during the said period. The state was able to generate revenue surpluses which kept development expenditure buoyant. Other parameters of fiscal performance were also kept within desired limits. Recently, the proclamation of prohibition had initially caused worry on the fiscal front due to an expected fall in commercial taxes collection, but other ways and means adopted by the state government will help it to tide over the situation. At present, the twin challenge of higher growth rate and inclusive development are being met by the state government with all due attention.
The current status of the state’s overall economy along with various sectors are presented in this Economic Survey for 2016-17. In each sector, the analysis of the development would throw light on the efforts made by the state government with resultant achievements. The bottlenecks has also been underlined so that remedial measures could be undertaken. Apart from this introductory chapter, the survey has nine more chapters — State Finances, Agriculture and Allied Sectors, Enterprises Sectors, Infrastructure, Energy Sector, Rural Development, Urban Development, Banking and Allied Sector and finally, Human Development.