BIHAR ECONOMIC SURVEY 23-24

History;
● The Economic Survey of India is an annual document of the Ministry of
Finance, Government of India.
● The Department of Economic Affairs, Ministry of Finance presents the Survey
in the Parliament every year, just before the Union Budget.
● It is prepared under the guidance of the Chief Economic Adviser of India.
● The first Economic Survey of India was presented in 1950-51 as part of the
Union Budget.
● After 1964 it was separated from the Budget and presented each year during
the Budget Session before the presentation of the budget.

In the context of Bihar

● Economic survey was done in Bihar for the first time during 2006-07.
● On February 12, the Bihar State government had tabled the Bihar Economic
Survey 2023-24 (18th) in the Assembly.
● Bihar Deputy Chief Minister and Finance Minister Samrat Chaudhary
presented the 18th Economic Survey 2023-24.

Economic Survey 2023-24 of Bihar divided into 14 chapters

CONTENT/CHAPTERS
1. Bihar Economy; An overview
2. State Finance
3. Agriculture and Allied sector
4. Enterprises sector
5. Labour, Employment and Skills
6. Physical Infrastructure
7. E Governance
8. Energy Sector
9. Rural Development
10. Urban Development
11. Banking Allied Sector
12. Human Development
13. Child Development
14. Environment Climate Change and Disaster Management

Bihar Economy; An overview

 ● As per the quick estimate for 2022-23, the GSDP of Bihar, at current prices, is
estimated to grow by 15.5 percent to Rs. 7.5 lakh crore, whereas the real
GSDP is estimated to grow by 10.6 percent to Rs. 4.4 lakh crore in 2022-23.
● The gross fixed capital formation (GFCF) in the state, at current prices, as a
percentage of GSDP (at current prices) is estimated to be 4.7 percent in
2022-23.
● The nominal per capita income in the state is estimated to be Rs. 59,637, with
an increase of 13.9 percent over the previous year.
● After adjusting for increase in prices, the real per capita income of the state is
estimated to grow by 9.0 percent in 2022-23 to reach Rs. 35,119.
● The state's nominal and real per capita income from 2018-19 to 2022-23 has
increased at an average annual rate of 7.6 percent and 2.3 percent,
respectively.
● India's nominal and real per capita income is estimated to be Rs. 1,72,276
and Rs. 98,374, respectively, in 2022-23.
● The average annual percentage growth in real per capita income of Bihar was
2.3 percent during the previous five years, which is higher than the growth
rate of 1.7 percent for India.
● Out of the last five years, the state's real per capita income has increased at a
higher rate than the all-India growth in four years.
● As per the quick estimate for 2022-23, India's real per capita income
increased at 6.3 percent, whereas the increase in Bihar is estimated at 9.0
percent
● As per the quick estimate for 2022-23, the share of the tertiary sector in the
gross value added in the state's economy is estimated to be 60.0 percent,
whereas the share of the primary and secondary sectors is estimated to be
20.0 percent each in 2022-23.
● The value added by the primary, secondary and tertiary sectors is estimated
to increase by 6.7 percent, 6.8 percent and 13.0 percent, respectively, in
2022-23.
● The inflation rate, measured as a year-on-year percentage change in the
Consumer Price Index (CPI), in Bihar was 5.5 percent between September
2022 and September 2023.
● The inflation rate in rural and urban areas was 5.5 percent and 5.6 percent,
respectively, during the same period

NOTE;
● Real GDP (Means at constant price) adjusts economic output for inflation,
revealing actual growth or contraction. It's vital for long-term trends, policy-
making, and accurate comparisons. Nominal GDP measures output at current
market prices, valuable for short-term analysis, revenue calculation, and
budget alignment.
 ● The new GDP base has been revised to 2011-12 from the earlier base year of
2004-05 to give a more accurate reading of the economy's structure.

Relatively Prosperous and Impoverished Districts of Bihar

Criteria Year Most Prosperous Districts Most Impoverished

Districts

Per Capita GDDP 21-22 Patna (114541), Sheohar (18980),

at constant (2011- Begusarai (46991), Araria (19795),
12) price (in Rs.) Munger (44176) Sitamarhi (21448)

Consumption of 22-23 Patna (17.2), Banka (4.7),

Petrol per 1000 Muzaffarpur (11.1), Lakhisarai (5.0),
persons in a year Purnea (9.9) Sheohar (5.4)
(in MT)

Consumption of 22-23 Patna (36.5), Sheohar (9.1).

Diesel per 1000 Sheikhpura (34.6), Siwan (11.6),
persons in a year Aurangabad (28.7) Gopalganj (11.7)
(in MT)

Consumption of 22-23 Patna (23.9), Araria (7.2),

LPG per 1000 Begusarai (15.8), Banka (7.2),
persons in a year Gopalganj (15.2) Kishanganj (7.8)
(in MT)

State Finance
● The total expenditure by the State government increased by 20.1 percent in
2022-23 over the previous year to Rs. 2,31,904 crore.
● The share of Establishment and Committed expenditure of the State
government was 54.7 percent of the total expenditure, and the Scheme
expenditure's share was 45.3 percent.
● Out of the total expenditure by the State government in 2022-23, the revenue
expenditure's share was 79.3 percent, and capital expenditure's share was
20.7 percent.
● The State government's capital expenditure increased by 41.4 percent over
the previous year to Rs. 47,928 crore in 2022-23.
● The expenditure from the revenue account of the State government increased
by 15.5 percent over the previous year to Rs. 1,83,976 crore in 2022-23.
 ● A significant part of the State government's revenue expenditure is on Social
Services-48.0 percent in 2022-23.
● The expenditure increased by 16.1 percent over the previous year in 2022-23
to Rs. 88,348 crore.
● The total receipt in the revenue and capital accounts of the State government
in 2022-23 was Rs. 1,72,688 crore and Rs. 48,325 crore, respectively.
● The Gross Fiscal deficit of the State government was Rs. 44,823 crore (6%) in
2022-23.
● The expected Gross Fiscal deficit of the State government for 2023-24 (BE) is
Rs. 25568 crore (3%)
● The deficit in the revenue account was of Rs. 11,288 crore, whereas the
capital account had a surplus of Rs. 397 crore.
● The interest payment by the State government in 2022-23 was Rs. 15,184
crore.
● The Primary deficit in 2022-23 was Rs. 29,640 crore (3.9%) and expectation
for 2023-24 is Rs. 7213 crore (0.8%)
● Total borrowings by the State government in 2022-23 was Rs. 48,284 crore.

NOTE;
Capital and Revenue Expenditure
Revenue Expenditure
● It neither creates any assets nor reduces liability.
● It is incurred for normal conduction of government departments and various
services.
● It is recurring in nature.
● Examples - salary, pension, interest etc.

Capital Expenditure
● It either creates an asset or reduces liability.
● It is incurred mainly for acquiring assets and granting loans.
● It is non-recurring in nature
● Examples-repayment of loan, acquisition of asset etc.

Capital and Revenue Receipt

● Capital receipts result in the formation of new assets. These include non-
recurring revenue like borrowings, sale of assets, investments, etc.
● On the other hand, revenue receipts are generated from the current
operations and include income from sales, rents, discounts, dividends, etc

Agriculture and Allied sector

● On an average, the agriculture and allied sectors contributed to around 20
percent to the Gross State Value Addition (GSVA) during 2018-19 to 2022-23.
● During the same period, the crop sector accounted for 9.9 percent of GSVA,
followed by livestock at 6.6 percent, fishing and aquaculture at 1.8 percent,
and forestry and logging at 1.6 percent.
● In 2021-22, the net sown area was 50.70 lakh hectares, constituting about
54.2 percent of the total geographical area in the state.
● Bihar's resilience in overcoming adverse climatic conditions is evident in its
impressive foodgrain production of 19,736 thousand tonnes in 2022-23.
● In 2022-23, Bihar's sugarcane production reached 214.76 lakh tonnes in
2022-23, with an average yield of 98.73 tonnes per hectare.
● In 2022-23, foodgrains accounted for 94.3 percent of the total cropped area,
with cereal crops leading at 87.9 percent; followed by pulses (6.4%),
sugarcane (3.1%), oilseeds (1.7%) and fiber crops (0.9%).
● Rice: Rice is a crucial kharif crop in Bihar, with Rohtas, Aurangabad, and
Kaimur accounting for 25.2 percent of the state's total production in 2022-23
(Appendix Table A3.2). Rohtas reported the highest productivity of rice at
4717 kgs. per hectare, grown in 2 lakh hectares, while Madhubani recorded
the lowest productivity at 1601 kgs. per hectare, grown in 1.7 lakh hectares.
● Wheat is a major rabi crop in Bihar, contributing to the state's food security.
Khagaria (3960 kgs. per hectare) had the highest productivity in 2022-23,
while Jamui had the lowest (1980 kgs per hectare) (Appendix Table A3.3).
Rohtas, Kaimur, and Bhojpur contributed 21.1 percent of total wheat
production in Bihar.
● Maize Bihar's impressive maize production growth has been made possible
due to favourable climate, adoption of high-yielding seeds, use of improved
practices, and government support. Among the districts, Araria (9872 kgs. per
hectare) recorded the highest maize productivity in 2022-23, leading the state
with over 20 percent (9.87 lakh tonnes) of the total maize production. The
other major maize producing districts include Katihar (7.82 lakh tonnes),
Purnea (4.63 lakh tonnes), and Khagaria (3.35 lakh tonnes).
● The demand for pulses in Bihar, particularly among vegetarians, is on the rise
due to their nutritional benefits and ecological sustainability. Though pulses
improve soil fertility, since they are largely grown under rainfed conditions in
the state, they are susceptible to high yield fluctuations. Patna (0.61 lakh
tonnes), Aurangabad (0.28 lakh tonnes), and Nalanda (0.28 lakh tonnes) are
the leading districts for pulse production, accounting for nearly 28.2 percent of
the state's total in 2022-23.
● Begusarai (1324 kgs. per hectare), Nalanda (1283 kgs, per hectare) and
Siwan (1280 kgs. per hectare) had the highest productivity.
● As of March 2023, 37.38 lakh hectares of irrigation potential has been
created, and 25.04 lakh hectares of irrigation has been achieved under major
and medium irrigation projects.
 ● The impressive egg production (327.43 crores) and fish production (8.46 lakh
tonnes) in 22-23.
● In spite of these challenges, the growth rate of agriculture and allied sectors
has been positive, growing at the rate of 5.2 percent per annum over the last
five years [2018-19 to 2022-23 (Q)].
● Agricultural sector was driven by growth in livestock (10.6%), crop sector
(7.8%), fishing and aquaculture (6.6%), and forestry and logging (2.3%)
during 2020-21, for which the final estimates are available.

Annual Growth Rate of Primary Sector in Bihar (2018-19 to 2022-23)

[Constant (2011-12) Prices]
Sector 2018- 2019-20 2020-21 2021- 2022- % share
19 22(P) 23(Q) of
Agricultu
re sector
in GSVA
of Bihar
(2022-23
Q)

Agriculture -1.0 1.1 8.1 4.2 6.6 19.8

, Forestry,
and
Fishing

Crops -5.9 -5.7 7.8 2.8 4.9 9.9

Livestock 7.6 11.4 10.6 4.7 8.6 6.6

Forestry 2.5 4.8 2.3 4.0 4.4 1.6

and
Logging

Fishing 2.4 6.5 6.6 11.5 11.1 1.8

and
Aquacultur
e

Enterprises sector
● On industrial development, during 2019-20 to 2023-24, the State government
has received 1934 proposals for investment, and 1689 have already received
Stage-1 clearance, and the total proposed amount of investment was Rs.
53607.27 crore.
 ● Out of the total investment worth Rs. 4712.97 crore, 39.7 percent came for
food processing units. In the ethanol industry, Rs. 686.74 crores have been
invested in six ethanol production units.
● BIADA has acquired 7347.53 acres of land and constructed 711 sheds till
September 30, 2023.
● In 2022-23, in 111 small enterprises, the total investment made was worth Rs.
684.02 crore, and 8560 fresh jobs were generated.
● For medium-sized enterprises, the investment amount recorded 2.9 folds
increase, from Rs. 162.7 crore in 2021-22 to Rs. 470.32 crore in 2022-23. The
number of workers employed has increased from 801 in 2021-22 to 5623 in
2022-23, which is a 602 percent increase in just a year.
● The State government in its IT Policy 2024 has made several provisions for
encouraging investors from the IT/ITES, Electronic System Design and
Manufacture (ESDM) and ancillary industries sectors to make Bihar their
preferred destination.
● The New Tourism Policy (2023-28) is now in force.
● As part of the Fourth Agriculture Roadmap (2023-2028), the State
government has been implementing the Bihar State Jaggery Industry
Promotion Programme to establish 405 jaggery units in the next five years.

Labour, Employment and Skills

● According to the Periodic Labour Force Survey (PLFS) 2022-23, in Bihar the
Labour Force Participation Rate (LFPR) was 50.9 percent of the total
population. The Worker Population Ratio (WPR) in Bihar was 48.7 percent.
● During 2018-19 to 2022-23, cumulatively, 1692.4 thousand people from Bihar
applied for passports, and 1662.4 thousand received the same. Between
2021-22 and 2022-23, the number of such applications increased by 82
percent.

Physical Infrastructure
● The construction as well as communication sectors emerged as important
growth drivers of Bihar economy. The construction sector grew by 1.5 times,
from Rs. 27.0 thousand crore in 2011-12 to Rs. 40.9 thousand crore in 2022-
23, at constant (2011-12) prices.
● The transport, storage and communication sector grew by nearly two-and-a-
half folds and reached Rs. 46.7 thousand crore mark during 2022-23 from
being Rs. 17.5 thousand crore in 2011-12.
● The construction, transport, communication, trade and hotel sectors, overall,
contributed 37 percent share in the Bihar economy, compared to 27 percent in
the Indian economy.
● In terms of road density (per 1000 sq.km.), Bihar ranks third among the major
states of India.
 ● Further, Bihar (1.25 lakh) is at the third place in the list on account of the
highest number of transport motor vehicle registrations during the calendar
year 2022, after Uttar Pradesh (2.76 lakh) and Maharashtra (1.88 lakh).
● The State government has adopted many policies to curb vehicular air
pollution through Bihar Clean Fuel Policy 2019, Electric Vehicle Policy 2023,
Vehicle Scrapping Policy, etc. and strict enforcement of Pollution-under-
Control norms.
● The railways grew by almost two times during the last 12 years, from Rs. 2.8
thousand crore in 2011-12 to Rs. 5.4 thousand crore in 2022-23.
● The size of air transport in GSVA jumped by seven times, from Rs. 30.8 crore
in 2011-12 to Rs. 228.2 crore in 2022-23.

E Governance
● The state has received several prestigious awards in the field of e-governance
such as Prime Minister National Award for Excellence in Public
Administration, Digital India award, CSI Nihilent e-Governance award, Skill
Development and Employability under National e-Governance award, CSI
SIG e-Governance Award of Excellence 2021 for ASHWIN portal and MEDHA
Soft portal.
● The State government is progressing fast to take all gram panchayats on
board for accessing e-governance programmes, services and entitlements
(Direct Benefit Transfers).
● Bihar recorded 53.6 telephone connections per 100 persons.
● The state government has sanctioned 44 cyber police stations

Energy Sector
● The availability of energy is a criterion for economic growth and social
progress. In the recent past, Bihar has progressed remarkably in terms of the
availability of power. The increase in supply hours and availability of quality
power has increased the per capita consumption of power from 134 Kwh in
2011-12 to 329 Kwh in 2021-22, i.e., an increase of 145.5 percent over a
decade.
● The performance of DISCOMs on the revenue front also remained
appreciable in the present decade.
● The AT&C Loss, which was 54.63 percent in 2012-13 has now come down to
24.32 percent in 2022-23.
● Also, a sum of Rs. 300 crore is being allocated every year from 2021-22 to
'Har Khet Tak Sinchai Ka Paani', a scheme of Saat Nishchay-2.
● The energy deficit has gradually declined from (-) 3307 Mega Unit in 2017-18
to a surplus of 4034 MU during 2022-23.
 ● Bihar is constantly moving towards renewable energy sources, i.e. hydel,
solar, etc. Around 31 percent of power came from renewable energy sources,
while 69 percent power was thermal power during 2021-22.
● However, the state would achieve the target of 35 percent power generation
from renewable energy sources by 2025-26.

Rural Development
● In Bihar, 10.47 lakh SHGs have been formed and a total of Rs. 34000 crore
as Bank Credit has been provided through 1894.9 thousand credit links till
September 2023. Under the alternative banking model, 5006 Bank Sakhis
were selected to promote financial transactions in rural areas by establishing
Customer Service Points (CSPs). This initiative led to transactions worth Rs.
1074207 lakh.
● Under the Satat Jeevikoparjan Yojana, 1,65,143 households have been
trained to start income-generating activities.
● For asset creation, Rs. 2 lakh has been provided under the Livelihood
Investment Fund to 1,52,830 households in 2022-23.
● In 2022-23, 167.0 lakh job cards were issued to households across 38
districts in the state, compared to 189.0 lakh in the previous year.
● Eighteen percent of all households were issued job cards.
● In 2022-23, 4753.75 acres of land were distributed among 95,075 families in
2022-23 under the Homestead Land scheme (Mahadalit Vikas Mission,
Grihsthal Yojana, and Tribal Sub-plan).
● The financial allocation for the scheme has increased from Rs. 4,520 crore in
2020-21 to Rs. 7,355 crore in 2022-23.

URBAN DEVELOPMENT
● Two major components of urbanisation are urban development and housing.
● Between 2018-19 and 2022-23, CAGR on urban development projects was
27.0 percent and that of housing development was 11.0 percent.
● The overall CAGR was 17.1 percent.
● Under the Mukhyamantri Shahri Peyajal Nishchay Yojana, till September 30,
2023, 18.33 lakh households out of 19.22 lakh have received piped drinking
water facilities on their premises.
● Under the Mukhyamantri Shahri Naali Gali Pakkikaran Nishchay Yojana, in
2022-23, 8.38 lakh households have benefited, compared to just 3.61 lakh in
2018-19. Cumulatively, till September 2023, 1372.64 kms, of streets have
been completed, which is 2.4 times the length completed in 2018-19.
● Further, till September 2023, 1356.74 kms. of drains have been constructed,
which is 3 times more than the length constructed in 2018-19.

Banking & Allied Sector

 ● The availability of low-cost financial capital from formal financial institutions is
crucial to boost the economic activities in Bihar.
● The number of bank branches in the state was 7883, whereas the banks
operated through 47,083 CSPs on March 31, 2023.
● The number of ATMs and POS machines was 7124 and 82,002, respectively,
as of March 31, 2023.
● The number of internet banking users in the state has rapidly increased from
72.8 lakh users on March 31, 2021 to 118.9 lakh users on March 31,2023.
● Out of 7883 bank branches in Bihar on March 31, 2023, 48 percent were
located in rural areas, 31 percent in semi-urban, and 21 percent in urban
areas.
● The public sector banks have the largest branch network of 3956 branches in
Bihar, followed by 2110 branches of Regional Rural Banks (RRB) and 1230
branches of Private sector banks.
● The Co-operative banks and Small Finance Banks (SFB) had a network of
294 and 293 branches, respectively, as on March 31, 2023.
● The Credit-Deposit Ratio (CD Ratio) of the banks in Bihar has improved
significantly in recent years, from 53.0 percent on March 31, 2022 to 55.6
percent on March 31, 2023.
● The size of Non-Performing Assets (NPA) as a percentage of the total
outstanding by the banks in the state has continuously declined in recent
years.
● It has decreased from 11.3 percent in 2021-22 to 9.3 percent in 2022-23. The
total NPA of the banks in Bihar has decreased from Rs. 23,870 crore in 2021-
22 to Rs. 22,944 crore in 2022-23.

Human Development
● The comprehensive expenditure on social services during 2005-06 to 2022-23
has increased 13.3 times.
● The expenditure on health increased more than eleven times and on
education increased by ten times.
● The share of expenditure on social services in the total expenditure increased
by 9.4 percentage points, from 31.9 percent in 2005-06 to 41.3 percent in
2022-23.
● Between 2010-14 and 2016-20, the Life Expectancy at Birth (LeB) for Bihar
has undergone a significant change from being 68.1 years in 2010-14 to 69.5
years in 2016-20, registering an increase of 1.4 years during this period.
● Between NFHS-3 (2005-06) and NFHS-5 (2019-21), institutional deliveries in
India increased by 49.9 percentage points, from 38.7 percent to 88.6 percent
respectively. For Bihar, this increase was by 56.3 percentage points, from
19.9 percent in 2005-06 to 76.2 in 2019-21.
 ● Under Janani Suraksha Yojana, in 2022-23, about 15.75 lakh females opted
for institutional delivery, and in 2023-24 (up to September 2023), 7.58 lakh
pregnant women have already availed the benefit.
● At the primary level, the dropout rate declined to zero, which means presently
all students are completing their primary education.
● In the upper primary, the dropout rate has declined by 39.4 percentage points,
from 42.2 percent in 2015-16 to 2.77 percent in 2022-23.
● At the secondary level also, the decline is almost 40.0 percentage points
during the same period.
● In 2022-23, changing the previous trend, the dropout of girls is less than that
of boys at the upper primary and secondary levels.
● During this period, the decrease in dropout at the secondary level is 36.20
percentage points for girls and 42.54 for boys.
● On an average, the share of the outlay for women in the total state budget has
been about 14 percent.
● The expenditure on women development as a percentage of GSDP has been
around 4 percent during 2016-17 to 2021-22.
● In 2021-22, the share of expenditure on women was 17.4 of the total budget
and 5.2 percent of GSDP.

Child Development
● As per the projected figures for 2021, the total population in the 0-18 years
age group is 33 percent of the total population of India, while in the 0-6 years
age group the population is 11 percent of the country's total population.
● In Bihar, this share of the child population (0-18 years) accounts for 42
percent of the total population of the state in 2021. Correspondingly, the share
of the 0-6 years age group is 16 percent of the state's population.
● The state has 12 percent of India's total child population. According to the
projected figures, there are 2.45 crore female children and 2.73 crore male
children in Bihar, adding up to 5.18 crore population in 2021.
● Between 2016-17 and 2021-22, the overall expenditure for children has
increased at an annual rate of 19.5 percent.
● In the same period, the per capita expenditure increased 2.4 times, from Rs.
3275 to Rs. 7956. In 2021-22, the share of expenditure on child development
amounted to 21.46 percent of the total state budget and about 6.4 percent of
GSDP.
● The budget for nutrition under ICDS has increased at the rate of 5.9 percent
annually from Rs. 1352.33 crore in 2017-18 to Rs. 1767.38 crore in 2022-23.

Environment Climate Change and Disaster Management

● The Bihar government has implemented the first-ever Green Budget in the
country, and launched the Jal-Jeevan-Hariyali Abhiyan in 2019, aiming to
 balance environmental sustainability with economic development, addressing
climate change, biodiversity, and environmental pollution.
● Under the Jal-Jeevan-Hariyali Abhiyan, about 288.31 lakh plantations were
undertaken in 2022-23.
● Registering 849.1 mm of rainfall in 2022, Bihar experiences varying rainfall
patterns, with over 81.7 percent of it coming from the south-west monsoons.
● Bihar experiences a humid sub-tropical climate with hot summers and mild
winters, with an average annual mean temperature of 24.7 degree Celsius
during 2022-23.
● The Bihar State Pollution Control Board (BSPCB) has partnered with the UN
Environment Programme (UNEP) to develop a strategy for 'Climate Resilient
and Low Carbon Development Pathway for the state of Bihar' with a goal to
minimize carbon emissions to the lowest possible level by 2070.
● The National Wetlands Decadal Change Atlas lists 4526 wetlands in Bihar
with an extent of at least 2.25 hectares.
● A total of 35 Continuous Ambient Air Quality Monitoring Stations (CAAQMS)
are now operational across 23 districts in the urban areas in the state,
keeping tab on key air pollutants.
● Bihar is the first state in the country to monitor ambient air quality at the block
level in rural areas using indigenous technology in collaboration with IIT
Kanpur.
● The project uses 534 low-cost sensors and satellite data, with additional
sensor sets installed at the BSPCB headquarters in Patna.