Bihar's Economy

GSDP: The growth rate of Bihar’s GSDP (at constant prices) was 10.5% in 2017-18 and 2018-19, higher than the GDP growth rate of the country in both years.

Sectors: In 2018-19, agriculture, manufacturing, and services contributed to 20%, 19% and 61% to the economy. These sectors grew by 0.6%, 6.3%, and 13.3%, respectively.

Per capita GSDP: The per capita GSDP of Bihar in 2018-19 (at constant prices) was Rs 33,629, 9% higher than the corresponding figure in 2017-18. In 2017-18, the per capita GSDP of Bihar was the lowest among all states.

Unemployment: According to the Periodic Labour Force Survey (July 2017-June 2018), the unemployment rate in Bihar was 7.2%, which is higher than that at the all-India level (6.1%).

Capital expenditure: Capital expenditure for 2020-21 is proposed to be Rs 47,010 crore, which is a decrease of 1.9% over the revised estimates of 2019-20.

Capital expenditure includes expenditure affecting the assets and liabilities of the state, such as:

(i) capital outlay, i.e. expenditure which leads to the creation of assets (such as bridges and hospitals), and

(ii) repayment and grant of loans by the state government.

Revenue expenditure: Revenue expenditure for 2020-21 is proposed to be Rs 1,64,751 crore, which is a decrease of 3% over revised estimates of 2019-20. This expenditure includes the payment of salaries, interest, and subsidies.

Note:

Grants to Local Bodies: The state government provides grants to local bodies. In 2020-21, Bihar has assigned Rs 15,211 crore as establishment and committed expenditure for local bodies, a decrease of 8.3% over the revised estimates of 2019-20. This expenditure head includes Finance Commission grants of Rs 7,434 crore. Rs 2,763 crore has been proposed as scheme expenditure for local bodies in 2020-21, a decrease of 10% over the revised estimates of the previous year.