FINANCIAL STATUS OF BIHAR: BPSC MAINS WRITING

        PART-1

BIHAR ECONOMIC SURVEY- CONCEPT OF STATE FINANCE :

NOTE: THE SOURCE OF DISCUSSION IS BASED ON BIHAR ECONOMIC SURVEY AND BUDGET:

"All well planned work produces good results even in adverse condition"------ CHANAKYA .

The share of revenue from the state's own resources came down significantly after the creation of Jharkhand as a separate state, mainly on account of  the drop in the non- tax revenue from the own resources. hence, bihar has largely been dependent on the transfers from the central govt. for its revenue reciepts. 

• The revenue expenditure on account of interest payment has been increasing over the year. The resources are available to meet the expenditure requirements of the state without adding to its debt burden. These indicators suggests that the means of the state finances in bihar are sustainable, the state govt. was able to maintain its daily minimum balance with RBI throughout the year of Rs. 1.73 crore.
• The minerals available in the state are all minor minerals that include bricks, stones, limestones etc. used mainly in real estate sectors, hence, the growth in revenue from these minerals is dependent on the increase in the related economic activity.
• Stamp and registration fee collection, Bhagalpur in top while jehanabad is in bottom most. The expenditure on social services is increased by 24.6% in 2018-19. The major heads of the social services was Education, Sports, art and culture, health and family welfare, water supply, sanitation, housing and urban development. The expenditure on economic services are Agriculture and allied activities, irrigaation, flood control, energy and power, industry minerals and transportation is accounted for 67.7% of the total expenditure. The per capita expenditure on medical and public health has consistently increased in the state over the years.