The Jharkhand Economic Survey tabled by the government in the State Legislative Assembly on Monday estimated 7.2 per cent growth in the Financial Year 2019-20, while it stated that the average annual growth rate of the State economy was just 5.7 per cent between the period 2015-16 and 2018-19.
The survey report prepared by the Centre for Fiscal Studies, Planning cum Finance department, Government of Jharkhand further stated that the economy of Jharkhand grew by 12.5 per cent in the financial year 2014-15, but the growth rate took a nosedive and fell by – 6.2 per cent in the year 2015-16.
The Gross State Domestic Product (GSDP) of Jharkhand is estimated to be Rs. 3, 43,126 crores at current prices and Rs. 2. 49,554 crores at constant prices in the year 2019-20. The per capita income (per capita NSDP) is estimated to be Rs. 83592 at current prices and Rs. 60,339 at constant prices in the year 2019-20.
However, the per capita income of Jharkhand is one of the lowest in the country. Out of the 28 states of the country it ranks 25th. The per capita income of only Bihar, Uttar Pradesh and Manipur is less than that of Jharkhand, says the survey.
The tertiary sector has been the major contributor in the growth of Jharkhand’s economy. It has contributed 65 per cent to the growth of the State’s economy in the year 2019-20. The primary and secondary sectors have made a contribution of approximately 15 and 20 per cent, respectively.
Notably, the rate of inflation in Jharkhand has remained almost similar to that of the country. The annual rate of inflation in Jharkhand was 5.3 per cent in 2016-17, 3.9 per cent in 2017-18 and 3.9 per cent in 20l8-l9. The rate of inflation, both in India and Jharkhand, has remained below 4 per cent since August 20l8.
According to the ‘Global Multidimensional Poverty Index -2019’ report, released by the OPHI and UNDP, in July 2019, 46.5 per cent (1.62 crore) people of the State were multidimensional poor in 2015-16.
Speaking of the fiscal development and State finances the report states that the share of non-tax sources in the rotal revenue receipts of the State varied from 30 per cent to about 37 per cent between 2013-14 and 2018-19. In the current financial year it is estimated to contribute about 33 per cent to the revenue receipts of the State.
The report further states that the dependence of the State on the Centre for revenue has increased over the years because of the increase in the State’s share in Central taxes in the period of 14th Finance Commission.
According to the survey the excess expenditure of the State over its total receipts has been financed by the fiscal deficit that had mostly remained within the limits set by the FRBM.
But, it exceeded the FRBM limits in 2016-17 and 2017-18 when it became 4.31 and 4.32 per cent of GSDP respectively. It was 2.16 per cent of the GSDP in 2018-19 and is estimated to be 2.09 per cent in the current financial year.
