Many hurdles in way of state's growth

PATNA: Despite 11.03% growth rate during the five years from 2004-05 to 09 and a plan size of Rs 20,000 crore for 2010-11, Bihar has a lot to worry about on the development front.
State finance ministry points out it would require 11.03% growth rate for continuous 16 years to reach the present status of Maharashtra. It's a different story that Maharashtra by then would be on a different platform.
Bihar pointed out to the 13th Finance Commission that it would need to pump in Rs 3.8 lakh crore in the state from 2010 to 2015 for the state to reach the national development expenditure average.Yet, the amount recommended by the Finance Commission is only Rs 1,72,944 crore. "It's larger than the funds allotted to Bihar by the 12th Finance Commission, but it's still inadequate," said deputy chief minister and finance minister Sushil Kumar Modi.
Union finance minister Pranab Mukherjee's Budget appears to have worsened the situation. While special funds have been proposed for Mumbai, Goa, Tamil Nadu and West Bengal, there is virtually nothing for Bihar. Also, the Rs 400 crore allotted for the entire eastern India for `Green Revolution' is like a drop in the ocean.
"Bihar's is a peculiar setting, and the Union Budget has failed to provide the much-needed relief to the state's economy. On the political front, there has been a demand for a special status to Bihar. Experts' committees like S R Sen committee, Wanchoo committee and the B D Pandey committee earlier recommended fiscal incentives to economically backward regions like Bihar and the north-eastern sector. We hope there shall be a rethinking on the part of the Union government and the legitimate demands of the people of Bihar will be met," said L N Mishra Institute of Economic Development's former director Chakradhar Sinha.
When Nitish Kumar assumed power in November 2005, the state's plan size was of just Rs 4490 crore. It has grown to Rs 20,000 crore and the state has spent a total of Rs 70,000 crore during the last five years. The government has been able to obtain loans and grants to the tune of Rs 1274 crore from international funding agencies like Asian Development Bank, UK Department for International Development and World Bank. The state's internal revenue is only Rs 11,850 crore.
Economists point out that the state's dream of achieving the national development expenditure level may not materialize if private investments do not come through. "Non-availability of power is the biggest hurdle in the way of private investments in the state and it is a sector which is facing many obstacles like the Centre's refusal to provide coal linkage and objections to the use of Ganga water by thermal power plants," said Modi.