Wednesday, 30 December 2015

Dynamics of growth in Bihar



                             Dynamics of  growth  in  Bihar


Under the leadership of #LaluprasadYadav and #NitishKumar has got massive victory in recent election in Bihar. Undoubtedly, people of Bihar have given their mandate to #Nitishkumar for changing the focus of discourse to pro-development during the  last decade and the victory was certainly uncertain without strong appeal and strength mobilised by #Laluprasadyadav.  During the era of #Nitishkumar, Bihar has seen infrastructural growth and large number of roads and building were constructed. At the same time, law and order situation has also improved remarkably. To control law and order, #NitishKumar particularly focused on henious crimes, police cover and behaviour. He also focused on Fast Track Courts and addressed timely completion of trials and  court proceeding.  Now, under the leadership of #NitishKumar and #TejashwiYadav it is important to give fast pace in delivery of infrastructure services, education, health, law and order, judicial services and economic performance for overall growth in Bihar.



While there is a multiple hypothesis drawn by opposition that Bihar will again transform into Jungle Raj. Given such a context, a new architecture of plan formulation needs to be designed by CM #NitishKumar and DCM #Tejashwiyadav. It is important to promote  agricultural activities,  needs to focus on addressing the concerns of small landholders, Promotion of contract farming by inviting contracting agencies, land reform and electronic mapping of land and distribution of land to the landless people. On the other hand, marketing of horticulture crops, such as litchi, mango, banana and guava at national and international level, accurate and reliable market information to all the stakeholders, especially farmers, regulation of marketing yards and mandis and to provide other key inputs for agriculture development. This will help in addressing regulatory measures, market infrastructure and price policy resulting in paradigm shift.



With an investment in education, establishment of engineering, medical and management Colleges on public-private partnership (PPP) model will increase the investment and retain the flow of money paid by the students in the other states as fee and other emoluments.



Development of software and ITES Park in Bihar will reduce the migration, create employment, so the income and consumption will increase in Bihar. Increase in income will also increase the purchasing power of the people in the upstream and downstream channel. This will create a multiplier effect which will augment the process of development in Bihar.



Flood management will mitigate the risk and vulnerabilities of people which will further prevent the loss of human and property every year.



What is important for #NitishKumar and #TejashwiYadav is to sustain the growth rate which will be more challenging in the coming years.



India is a federal state but significant powers still resides at the center . Notably,  states gets revenue partly by the devolution of taxes and partly deals are negotiated with the Niti Ayog. Central government has substantially declined the revenue sharing of Bihar in the devolution of taxes in the 14th finance commission. Central government has given weightage to forest cover area by 7.5 % and unfortunately there is no "JUNGLE RAJ" (forest cover ) (area under forest is only 12.8%) in bihar. The formula was infact changed for BJP ruling states as in BJP ruling states as of now, plenty of area is covered with #JUNGLE i.e forest and 5 BJP ruling states directly got benefited and Bihar lost its revenue because of less area under forest. So, Bihar needs more #JUNGLE in the coming years. (LOL)



Many schemes sponsored by the Centre require counterpart funding by states to avail the centre's contribution. The central government has substantially declined revenue sharing of key programmes of school activities in which now Bihar have to manage additional fund of approx. 1300 cr to avail the fund from central government. There is a clear acknowledgment that such conditions affects the ability of relatively poorer states like Bihar to access funds but conditions are defended on the ground of accountability and ownership. It  is important for Bihar to negotiate with central government in the funding pattern for existing share for  schools programmes.



Central government has also discontinued the revenue of Backwards State Regions Grant Fund (BSRGF) in which Bihar again lost revenue of 1500 cr.



Since, Bihar has also banned alcohol in which bihar will loss approx 4000 cr revenue so the need of the hour is to seek and explore the area for income generating and to promote industrial activities to increase revenue in Bihar.



Lack of funds may upset Bihar priorities and it's requirements. This will hamper state planning process and affects the smooth implementation of Bihar schemes. Since, the state government are entrusted with higher responsibilities by Article 246 of the 7th schedule of constitution with respect to social spending as education, health, and other welfare works. So, it is important, therefore, to understand the dynamics and complexity of centre -state share particularly for a poor state like #Bihar.



So, in the coming year 2016, on a good note, I hope that central government instead of involving in the game of naming - shaming will play a key role in the development. It is important for #Nitishkumar and #TejashwiYadav to establish a good coordination with the central government for all round development of Bihar, so that it may not jeopardised the stability of Bihars economy. It is important for state government and central government to arrive at workable consensus on each issue and to pave the path of development bringing paradigm shift in policies.



Happy New Year 2016