Patna: The Bihar government’s economic survey for the fiscal year 2024-25, presented by Deputy Chief Minister and Finance Minister Samrat Choudhary in the Legislative Assembly today, reveals a state demonstrating robust fiscal management and a clear focus on infrastructure development. Key trends highlighted in the survey point towards a strengthening economy and a strategic approach to public finances.
Capital Expenditure Leads the Charge:
A striking feature of the survey is the 3.1-fold increase in capital expenditure between 2019-20 and 2023-24. This surge, far outpacing the 1.5-fold growth in revenue expenditure, underscores the government’s commitment to building long-term assets and driving economic growth. The share of capital expenditure in the total budget has risen significantly from 14% to 24% in this period, signaling a shift towards investments that can yield sustained returns.
Tax Revenues on the Upswing:
Bihar’s revenue generation is also showing positive momentum. Tax revenue remains the cornerstone of the state’s receipts, accounting for a substantial Rs. 1,61,965 crore in 2023-24. Notably, the share of tax revenue in total receipts has climbed from 75.3% in 2019-20 to 83.8% in 2023-24, indicating improved tax collection efficiency and a broadening tax base.
Fiscal Prudence and Sustainability:
The survey emphasizes the government’s commitment to maintaining fiscal sustainability. Despite increased spending, the state recorded a revenue surplus of Rs. 2,833 crore in 2023-24. This highlights prudent financial management and the ability to balance developmental needs with fiscal responsibility.
Focus on Social and Economic Services:
The survey also sheds light on the allocation of expenditure across various sectors. Spending on social services, economic services, and general services has witnessed growth between 2019-20 and 2023-24. This reflects the government’s focus on improving the quality of life for its citizens and fostering inclusive growth.
Debt Management:
While the state’s total borrowing was Rs. 60,218 crore in 2023-24, the government also repaid Rs. 22,979 crore in public debt. The outstanding debt at the end of the fiscal year stood at Rs. 3,32,741 crore, with interest payments of Rs. 17,606 crore.
Own Revenue Generation:
The survey reveals that 27.7% of the state’s revenue originates from its own tax and non-tax sources. Revenue from the state’s own tax sources increased by 9.9% in 2023-24, demonstrating improved internal revenue generation capacity.
Overall, the economic survey paints a picture of a state on a steady path of economic development, characterized by strategic investments, robust revenue generation, and prudent fiscal management. The focus on capital expenditure and infrastructure development is expected to lay a strong foundation for future growth and prosperity in Bihar.
