Bihar Budget (2023-24) Analysis

■ Bihar Finance Minister Vijay Kumar Choudhary presented the Budget for the State for the financial year 2023-24 on 28th February 2023 in Bihar Legislative Assembly.

■ Budget Highlights:


■ Gross State Domestic Product (GSDP)

• The Gross State Domestic Product (GSDP) of Bihar in 2023-24 (at current prices) is estimated at ₹8,58,928 crore amounting to 8.86 per cent growth over 2022-23 (revised estimate). (Please don't confuse with the GSDP growth rate of 15.24% as it's still based on the 2022-23 budget estimate)

N.B.: The actual GSDP of Bihar in 2021-22 (at Current prices) was 6,75,448 crore.

(other macro parameters in Bihar Economic Survey 2022-23)


Expenditures

• In 2023-24 the proposed Total Expenditure is ₹2,61,885.40 crore which is ₹24,194.21 crore more (i.e. 10.18 per cent increase) than the previous budget estimate. Out of this Total Expenditure, ₹2,07,848 crore is the Revenue Expenditure and 54,037.40 crore is the Capital Expenditure. The percentage of Revenue and Capital expenditure in total expenditure is 79.37% and 20.63% respectively. The Revenue Expenditure increased by 8.3 per cent whereas the Capital Expenditure increased by 18.1 per cent, compared with 2022-23 budget estimate.

Expenditure excluding the debt repayment is estimated at ₹2,38,327 crore, a 12% decrease over the revised estimates of 2022-23 (₹2,70,849 crore). Besides this debt of ₹23,559 crore will be repaid by the state in 2023-24.

Establishment & Commitment Expenditure is estimated at ₹1,61,855.67 crore, which is ₹24,394.72 crore more than previous budget estimate.

Annual Scheme Outlay is estimated at ₹1,00,000 crore, which is equal to the year 2022-23 budget estimate. Good Governance Programme, 2020-25: - Under Seven Nischay-2 of Aatmanirbhar Bihar (2020-25) ₹5,000 crores Budget Estimated in Various Department for the Financial Year 2023-24.

• For the year 2023-24 Development expenditure is ₹1,67,375.47 crore and Non-Development expenditure is ₹94,509.93 crore. The total expenditure is ₹2,61,885.40 crore. The percentage of Development expenditure and Non-Development expenditure in total expenditure is 63.91% and 36.09% respectively.

 

Receipts

• In 2023-24 the proposed Total Receipts is ₹2,62,085.40 crore, which is ₹24,193 crore more than the previous budget estimate. Out of this Total Receipt, 2,12,326.97 crore is the Revenue Receipts and ₹49,758.44 crore is the Capital Receipts. The percentage of Revenue and Capital receipts in total receipts is 81% and 19% respectively. The Revenue receipts increased by 7.9 per cent whereas the Capital receipts increased by 20.8 per cent, compared with 2022-23 budget estimate. 

• The revenue receipt is more than the revenue expenditure hence we have revenue surplus budget. For the year 2023-24 revenue surplus is ₹4,478.97 crore which is 0.52% of GSDP. This revenue surplus will be used for investment in physical infrastructure generating productive capital assets like roads, buildings, power, schools, health centre's, irrigation schemes etc.

(Note: According to the revised estimates 2022-23, there is a revenue deficit of ₹28,349 crore i.e., 3.59% of GSDP.)

Receipts excluding borrowing is estimated at ₹2,12,759 crore, a 5.6% increase over the revised estimates of 2022-23 (₹2,01,465 crore).

State's Own Tax Revenue is estimated at ₹49,700.05 crore in 2023-24 which is ₹8,313.05 crore more than previous budget estimate.

State's Non-Tax Revenue is estimated at ₹6,511.74 crore in 2023-24 which is ₹376.12 crore more than previous budget estimate.

State's Share in Central Taxes is estimated at ₹1,02,737.26 crore in 2023-24 which is ₹11,556.66 crore more than previous budget estimate.

Grants in Aid from Central Government to State is estimated at ₹53,377.92 crore in 2023-24 which is ₹4,623.37 crore less than ₹58,001.29 crore for the year 2022-23 budget estimate.

 

■ Fiscal Management:

•The Fiscal Deficit has been estimated at ₹25,567.83 crore which is 2.98% of GSDP estimate. The fiscal deficit to GSDP is within the statutory limit of 3% as per the FRBM Act. As per FRBM Act it is required to take loans and debts within the limit of Fiscal Deficit.

The Bihar Fiscal Responsibility and Budget Management Act, 2006 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.

• The Outstanding Public Debt is estimated at ₹2,76,165.43 crore in 2023-24 which is 32.15% of GSDP

The total debt including liability in public account i.e., the outstanding liabilities is estimated at ₹3,24,762.35 crore in 2023-24 which is 37.81% of GSDP. This is lower than the recommendation of 40.4% of the 15th Finance Commission.

• The Primary Deficit of Bihar is estimated at ₹ 7,213 crore i.e. 0.8% of the GSDP.

• The Interest Payment is estimated at 8.64 per cent of the Total Revenue Receipt during 2023-24.

 

■ Budget At a Glance:

Budget at a glance- Bihar

 

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Rupee Comes From

  • State's Share in Central Taxes= 39.20%
  • Tax Revenue of State= 18.96%
  • Non-Tax Revenue of State= 2.48%
  • Grants in Aid from Center= 20.37%
  • Public Debt= 18.82%
  • Recoveries of Loan & Advnaces= 0.16%

■ Rupees Goes To

  • General Services = 28.38%
  • Social Services = 38.14%
  • Economic Services = 24.01%
  • Grants in Aid and Contribution = 0.00%
  • Public Debt = 9.00%
  • Loans & Advances = 0.47%


■ Department-wise allocation

 • The highest allocation is for Education with a Total Outlay of ₹40,450.91 crore, in which 22200.35 is Scheme Expenditure and 18,250.56 is Establishment & Commitment Expenditure.

Detailed department-wise allocations arranged from highest to lowest are as follows:

department wise allocations of Bihar Budget


■  Priorities

In Bihar’s budget 2023-24, several priorities have been set by the State government, these are as follows:

1. Youth and Employment

2. Continuous Women Empowerment

3. Minority Welfare

4. Strengthening and Modernization of Police Force

5. Agriculture and Rural Development

6. Green Development

7. Infrastructure and Industrial Development

8. Urban Development

 

(1). Youth and Employment

Bihar government has prioritised providing 10 lakh government jobs to youths, as well as facilitating self-employment opportunities by enhancing their skill and entrepreneurial aptitude, as well as providing financial allotments for paying incentive money and seed capital.

Government employment:

• Requisitions have been submitted to BPSC, Staff Selection Commission and Technical Service Commission for filling a total of 63,000 posts.

• For strengthening of Bihar Police, approval has been given for the creation of a total of 75,543 different posts of police personnel, filling through need-based direct requitement.

• A total of 3.8 lakh posts of teachers and physical teachers have been created for filling in primary, middle and high schools, as well as in existing engineering colleges and polytechnic institutes.

• In the state’s Nursing Training Institutes 165 nursing tutors have been appointed. The process of regular appointment of approximately 10,550 Auxiliary Nurse and Midwifes (ANMs) is underway.

 

Employment Generation:

• To provide self-employment opportunities to the youth under the Mukhyamantri Udyami Yojana an allocation of ₹800 crores has been made for the year 2023-24.

• To encourage entrepreneurship with new ideas and innovations, the state government has implemented a new Bihar Startup Policy, 2022. Under this policy, a provision has been made for capital seed funds of up to ₹10 lakh, which is 5% higher in the case of women and 15% higher in the case of scheduled castes/tribes and persons with disabilities. This year, 19 selected startups have been provided with a seed fund of ₹84 lakh.

• The Mukhyamantri Gram Parivahan Yojana (CM Rural Transport Scheme) provides funding for the purchase of passenger vehicles, e-rickshaws, and ambulances to 7 beneficiaries per panchayat (4 from the Scheduled Castes/Scheduled Tribes and 3 from the Extremely Backward Classes (EBCs)).

• The Samagra Gavya Vikas Yojana (Comprehensive Cow Development Scheme) aims to create employment opportunities for all sections of the state, including farmers, people associated with dairy business, and unemployed youth, through loans and grants. The plan is to equip 7,000 villages in the state with dairy cooperative societies, of which 40 per cent will be women's dairy cooperative societies. Under this scheme, a provision of ₹113.60 crore has been made for the year 2023-24.

• To increase the quality in each Industrial Training Institutes (ITIs) of the state, a total of 23 courses have been selected for training and 20 Industry Partners have been identified by the Tata Technology to provide employment to the trained students after completion of training. Out of the 60 ITIs chosen in the first phase, it’s scheduled to begin training of 9 courses at 20 institutes from April 2023.

• In the State Polytechnic Institutes to enhance the quality in new emerging technologies viz. Drone Technology, Electrical Vehicle (EV), AI, IoT, 3D printing, Robotics & Industrial Automation etc. establishment of Centre of Excellence has been approved. Two new polytechnic institutes will also be established.

• In 2023-24, a provision of ₹90 crore has been made for the New and Emerging Technologies in the State Polytechnic Institutes.

•At engineering colleges, the latest courses in Artificial Intelligence, Internet of Things, Machine Learning, Data Science, Cyber Security, Block Chain Technology, etc. are being taught at the undergraduate level. The administration of these courses began in the current academic session of 2022-23.

• Under the Chief Minister's Scheduled Caste and Scheduled Tribe Civil Service Incentive Scheme, candidates from SCs/STs community who have cleared the preliminary exam of Bihar Public Service Commission (BPSC) and Union Public Service Commission (UPSC) exams are given financial assistance of ₹50,000/- and ₹1,00,000/- respectively. So far, a total of 3,507 candidates, including 113 from the Union Public Service Commission and 3,394 from the Bihar Public Service Commission, have benefited from this scheme.

• Under the Chief Minister's Extremely Backward Class Civil Service Incentive Scheme, candidates belonging to the EBCs who have cleared the preliminary exams of the BPSC and UPSC are given financial assistance of ₹50,000/- and ₹1,00,000/- respectively. So far, a total of 5,661 candidates, including 143 from the Union Public Service Commission and 5,518 from the Bihar Public Service Commission, have benefited from this scheme

• A new Bihar Engineering University (BEU) will be established. The Bihar Engineering University is set-up under the Bihar Engineering University Act, 2021. Earlier, all the technical institutions of the state were being administered by Aryabhata Knowledge University (AKU) in Patna. After the establishment of BEU all the technical institutions in the state will be governed by the new engineering university.

•A full-fledged sports university ‘Bihar Sports University’ is being established in the premises of International Cricket Stadium and Sports Academy, Rajgir (Nalanda). Bihar is the sixth state in India, where a sports university is being established.

• A Medical University has been built in order to improve medical education in the state. Space has been made available on the campus of AKU in Patna for this purpose. Construction work is underway for new medical colleges and hospitals in 9 districts of the state including Purnia, Chapra, West Champaran, Samastipur, Madhubani, Vaishali, Siwan, Jamui, and Sitamarhi. Additionally, actions are being taken for the construction of three government medical colleges and hospitals in Bhojpur, Buxar, and Begusarai.

• In order to expand dental healthcare and education in the state, the construction of a Government Dental College and Hospital in Rahui (Nalanda) was completed on 12th December 2022, and it has been made operational.

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(2). Continuous Women Empowerment

Under Saat Nishchay-2 initiative ‘Strong women, capable women’, priority has been given for continuous women empowerment in the Budget 2023-24.

• Bihar had set the provision for 50 per cent reservation for women in Panchayati Raj Institutions (PRIs) in 2006 and in Urban Local Bodies (ULBs) in 2007, showing the way for the entire country. As a result, currently, 4,209 women are elected as village heads (Mukhiya), 5,982 women are members of Panchayat Samitis, 654 women are elected as District Councillors, and a total of 2,858 women councillors, including 16 Chief Councillors and 6 Deputy Chief Councillors, are elected in ULBs.

Jeevika is an ambitious project of the Bihar government that has become a vision for the empowerment of women and their economic and social development in Bihar. Under this project, Self-Help Groups(SHGs) of poor women (Jeevika Didis) have been formed, and continuous efforts are being made to provide them with financial assistance, accounting management, and training on other aspects. The government's efforts through Jeevika have resulted in the transmission of self-confidence and self-esteem among women, and their strengthened presence in society.

  • Through Jeevika, a total of 10.45 lakh SHGs have been formed, which have connected over 1.3 crore women.
  • "Didi ki Rasoi" is being run by Jeevika Didis in hospitals, schools for scheduled castes and tribes, and other institutions.
  • There is a plan to start "Didi ki Rasoi" in the mental health hospital in Koilwar (Bhojpur).
  • In addition to this, Jeevika also plans to provide cleaning services and supply clothes for patients in these institutions.

• Under the Mukhyamantri Mahila Udyami Yojana (MMUY), 40 Jeevika Didis have been selected as women entrepreneurs and developed an initiative of Muzaffarpur bag cluster.

• With the support of the State Horticulture Mission, 7,728 women associated with SHGs are engaged in beekeeping. So far, 2,418.7 metric tons of honey have been produced.

• In coordination with the Department of Environment, Forest, and Climate Change and the Department of Rural Development, 519 Jeevika Didis have developed nurseries (Didi's Nursery), consisting of 319 nurseries under MGNREGA and 200 nurseries developed in coordination with the Department of Environment, Forest and Climate Change.

• The state government is carrying out various activities through Jeevika-based Village Organizations under the Jal-Jeevan-Hariyali Mission, including maintenance of ponds, sewing and supply of uniforms in schools, and expansion of Didi's kitchen in all district and sub-district hospitals. The implementation of the Sustainable Livelihood Program is also being decided for urban areas.

• Under the Mukhyamantri Kanya Vivah Yojana, families belonging to BPL (Below Poverty Line) or other families whose annual income is less than ₹60,000 are given a direct benefit transfer (DBT) of ₹5,000 at the time of their daughter's wedding. The aim of this scheme is to provide financial assistance to poor families, encourage registration of marriages and prevent domestic violence and child marriage. An allocation of ₹100.43 crores has been made for the year 2023-24.

• Under the Mukhyamantri Nari Shakti Yojana, Civil Service Incentive Scheme, female candidates who clears the preliminary exams of the UPSC and BPSC are provided with financial assistance for their preparation for the main examination and interview. A sum of ₹1,00,000 and ₹50,000 is provided for the same. An allocation of ₹60.20 crore has been made for the year 2023-24.

For Mukhyamantri Nari Shakti Yojana, ₹60 crore has been allotted.

• In the year 2022-23, a total of 6,75,125 girls have been benefited under the Mukhyamantri Balika Cycle Yojana. For this purpose, an allocation of ₹50 crore has been made for the year 2023-24.

• In the year 2022-23, under the Bihar Shatabdi Mukhyamantri Balika Poshak Yojana, 18,08,534 girls have been benefited. A provision of ₹100 crores has been made for this in the year 2023-24.

• In the year 2022-23, under the Mukhyamantri Balika (Intermediate) Protsahan Yojana, a Direct Benefit Transfer (DBT) of ₹25,000 is being provided to 5,21,078 unmarried (Intermediate pass) girls. A provision of ₹400 crores has been made for the year 2023-24.

• In the year 2022-23, under the Mukhyamantri Balika (Snatak) Protsahan Yojana, women are provided with financial assistance of ₹50,000 upon completing their graduation. In the year 2022-23, a total of ₹84.60 crores has been distributed among 33,843 female students. A provision of ₹200.00 crores has been made for this in the year 2023-24.

• Under the Mukhyamantri Balika Protsahan Yojana, students who pass the Matriculation exam with first division (General, BC-II category) organized by the Bihar School Examination Board are being provided with financial assistance of ₹10,000 per student through DBT. A provision of ₹94.50 crores has been made for this in the year 2023-24.

• Under the Chief Minister Scheduled Caste and Scheduled Tribe Merit Scholarship Scheme, students who pass the 10th grade in the first division are given ₹10,000 and those who pass in the second division are given ₹8,000.

• Under the Chief Minister Extremely Backward Class Merit Scholarship Scheme / Chief Minister Backward Class Merit Scholarship Scheme, students who pass the 10th grade in the first division are given ₹10,000.

• Bihar government has waived off road tax on commercial vehicles purchased and driven by women. If a two-wheeler, taxi, motor cab, maxi cab is registered in the name of a woman and it is driven by the woman herself or any other woman who has a commercial driving license, then a full tax exemption is given.

• To promote entrepreneurship / self-employment among women of the state, Mukhyamantri Mahila Udyami Yojana was started. An allocation of ₹250 crores has been made for this scheme in the year 2023-24.

• Efforts are being made by all departments to increase the participation of women in regional administration in accordance with reservations, such as in police stations, subdivisions, districts, and regional offices.

 

(3). Minority Welfare

• Under the, Mukhyamantri Vidyarthi Protsahan Yojana, a total of 63,586 minority students have been provided benefits with an amount of ₹83.40 crore allocated in the year 2022-23 so far.

• Under the State Coaching Scheme, training is being provided to 1,210 minority students for the preparation of various competitive examinations in the year 2022-23.

• Since 2018-19, in order to create awareness among students from minority communities about higher education, a monthly grant of ₹1,000 per student is being provided to resident students in Minority Welfare Hostels. Additionally, 15 kg of food grains per student per month is being provided free of cost in these hostels.

• Under the Divorced/Abandoned Muslim Women Assistance Scheme, the amount of assistance has been increased from ₹10,000 to ₹25,000. This amount is provided by the state government as assistance for their self-reliance.

• Under the Bihar State Madrasa Strengthening Scheme, new and dilapidated madrasas are to be constructed and arrangements are to be made for quality education. For the strengthening of madrasas in the year 2023-24, ₹39 crore have been earmarked. To provide quality education in madrasas, 4,000 teachers and 2,000 head maulvis are to be trained, and 200 master trainers are to be prepared.

• Three sets of rules have been implemented for the management and appropriate teaching of madrasas:

  1.  Bihar State Madrasa Education Board Rules 2022,
  2.  Bihar State Non-Governmental Grant-in-Aid Madrasa Management Committee Formation Rules 2022, and
  3. Bihar State Non-Governmental Grant-in-Aid Madrasa (Up to Maulvi Level) Teaching and Non-Teaching Staff (Appointment and Service Conditions) Rules 2022.

It is hoped that this will bring transparency and improvement in the management and appointments of madrasas.

 

(4). Strengthening and Modernization of Police Force

• In Bihar 35 per cent of seats in police recruitment from the rank of constables to Deputy Superintendent of Police are reserved for women. The state government has continuously constructed women's police stations.

(Note: Bihar has the highest number of women in police force than any other state in the country.)

• For the construction of police buildings, 315.63 crores have been allocated for the year 2023-24.

• For the strengthening of the police administration in Police station / Out Post, 155 crores have been allocated for the year 2023-24 for CCTV cameras, Safe City Surveillance, Crime and Criminal Tracking Network & System (CCTNS), etc.

• Under the Emergency Response Support System (ERSS), assistance is provided when calling / using the WhatsApp app at 112.

• Under e-governance, the Security Operations Centre (SOC) project is proposed to be established to securely store all data and protect critical IT infrastructure.

• Under the Bihar Fire Service Building Construction Fund, ₹30.00 crore have been allocated for the construction of 35 fire service centres in 2023-24.

• An amount of ₹100 crore has been allocated for the construction of prison / utility buildings at various locations in the year 2023-24, and an amount of ₹30 crore has been earmarked for land acquisition for the construction of new prisons.

 

(5). Agriculture and Rural Development

With an effective implementation of the programs specified in the Agriculture Road Map, Bihar was awarded a total of five Krishi Karman Puraskar by the Indian government for significant achievements in the production and productivity of rice in 2011-12, wheat in 2012-13, maize (coarse grains) in 2015-16, maize (coarse grains) in 2016-17, and wheat in 2017-18. In the year 2018, the total food production was 178.02 lakh MT, which has increased to 184.86 lakh MT in the year 2022.

The budget has made several provisions for agriculture and rural development, these are as follows:

• Agriculture Road Map: 

To promote integrated development in agriculture and improve the economic condition of farmers, the state is implementing plans to create agricultural road maps. The first step in this direction was on17th February 2008 when the State Government started the first Agriculture Road Map (2008-12). Subsequently, the second from 2012 to 2017, and the third for the period 2017 to 2023. Currently, the duration of the Agriculture Road Map III is till 31.03.2023 and work is being done to create an Agriculture Road Map IV for the next five years. Through this, the state government has been continuously working towards the Indradhanush (Rainbow)Revolution.

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Agriculture Road Map IV (2023-27):

  • Under the fourth Agriculture Road Map special programs will be implemented to promote pulse and oilseed crops and nutritious grains.
  • Special efforts will be made to easily reach plant protection services to farmers using state-of-the-art drone technology.
  • Under the Climate-Smart Agriculture Program, work is being done to change the crop pattern and manage crop residues and use them as animal feed.
  • Farmers are being encouraged to diversify crops to promote horticulture.
  • Financial assistance will be provided to farmers for lemon grass cultivation in non-agricultural barren land.
  • Organic corridors are being expanded in districts located along the Ganges River.

 

• Agricultural Marketing:

To promote agricultural marketing in the state, government market yards are being modernized and new basic infrastructure is being developed under it.


• Organic Farming:

  • Under organic farming, agriculture is being carried out on more than 92,000 acres of land, and on approximately 13,000 acres of land under drip irrigation.
  • Efforts are being made to connect specific products from the market to encourage organic farming so that farmers can receive appropriate prices according to their costs.
  • In addition to traditional crops, the production of blue and yellow varieties of strawberries, bell peppers, blue and yellow cauliflower, and other products has begun in cash crop areas. Along with this, alternative crops, weather-adaptive farming, and other new technologies are being encouraged.

 

• Horticulture Development:

  • In the year 2022, with the objective of horticulture development in the state, the Centre of Excellence (Vegetables), Chandi (Nalanda) provided 9.40 lakh vegetable plants and the Centre of Excellence (Fruits), Deshri (Vaishali) provided 2.30 lakh fruit plants to farmers.
  • Under the horticulture development in the state, Centres of Excellence for foxnut and honey will be established. A comprehensive work plan will be implemented for the production of plant material and quality control.


• Bihar Millet Mission:

  • The United Nations has declared 2023 as the International Year of Millets. To promote the cultivation of millets in the state, the Bihar Millet Mission will be launched.
  • The state has a history of producing coarse cereals. Emphasis will be given to the production of nutritious grains such as ragi, kodon, sanwa, kawani, etc.

 

• Kundghat Reservoir Project:

  • The Kundghat Reservoir Project is being constructed at a cost of ₹185.21 crore to provide irrigation facilities in the drought-affected areas on the Bahuar River under the Sikandra block of Jamui district.
  • With the construction of this project, irrigation facilities will be available in a total of 2,035 hectares of land in the Sikandra block of Jamui district.
  • There is a provision of ₹70 crore for the year 2023-24.

 

• River Linking Project:

  • Work is being carried out on the Kosi-Mechi Linking Project, which is an ambitious project of the state government. After the completion of this project, irrigation facilities can be provided in a total of 2.14 lakh hectares of land.
  • A program has been proposed to implement the remaining work of the North Koel Nahr Project, which will provide irrigation facilities in a total of 95,521 hectares in Aurangabad and Gaya districts. The total cost of this project is ₹3,199.85 crore. The target is to complete this project by March 2025. An allocation of ₹67.91 crore has been made for this project in the year 2023-24.

 

• The Department of Water Resources has implemented a total of 156 schemes in the year 2022-23, irrigating 45,194 hectares of land. A provision of ₹200 crore has been made for the year 2023-24.

 

• The Minor Water Resources Department has initiated work on 120 schemes for the year 2021-22 and has completed 56 schemes. Work has started on 13 Check Dam schemes and 9 of them have been completed. Work has started on 54 lift irrigation schemes and 15 of them have been completed. So far, a total of 18,602 hectares of restored irrigated area has been achieved. Approval has been given for 186 Ahar Pyne, 11 Check Dam, and 50 lift irrigation schemes for the year 2022-23. A provision of ₹340 crore has been made for the year 2023-24.

 

• Agriculture Feeder:

  • To ensure an adequate supply of electricity to agricultural consumers in the state, 291 electricity substations of 33/11 KV capacity and 1,354 separate feeders for agricultural operations have been constructed at a cost of ₹7,488.78 crores.

 

Mukhyamantri Krishi Vidyut Sambandh Yojana:

  • A scheme of ₹1,329.61 crores is being implemented to provide electricity for agriculture as a priority in the rural areas of all districts of the state, and the goal is to complete it this year. So far, approximately 3.54 lakh agriculture electricity connections have been provided. In addition, electricity is being made available to farmers for agricultural purposes at a rate of only 70 paise per unit.

Development of animal and fishery resources:

  • To increase the income of the state's livestock and fishery farmers, modern technology will be used to promote milk production and processing, poultry farming, fish farming, etc. A provision of ₹525.38 crores has been made for this purpose in the year 2023-24.

• Basic facilities for better animal health management:

  • Under this, a strong system has been established to provide doorstep delivery of services such as animal hospitals, medical facilities for animals, vaccinations, artificial insemination, deworming, etc. in 8-10 panchayats each. These services can be obtained through a call centre or a mobile app. 
  • In addition, animal hospitals will also be connected through telemedicine. Currently, 1,137 animal hospitals are being operated by the department, out of which vaccination and deworming facilities are available in all 1,137, and artificial insemination facilities are available in 566.

• Chief Minister Rural Housing Assistance Scheme:

  • Under this scheme, before 1st April 2010, families belonging to SCs, STs, and EBCs, whose housing is incomplete or in poor condition, can receive financial assistance of up to ₹50,000 to complete their housing under the Indira Awas Yojana.

• Solar Street Lights in all villages:

  • Under this, the work of installing solar street lights in a phased manner for public use has begun in each ward of the village panchayat. A provision of ₹392crore has been made for the year 2023-24.

• Solid and Liquid Waste Management:

  • Under this, arrangements will be made for solid and liquid waste management, and waste management in villages. By 2022-23, work has already started in 30,933 wards of 2,235 panchayats against 57,028 wards of 4,250 targeted panchayats

 

(6). Green Development

• Water Conservation:

  • Under this scheme, water management plans are being implemented in the districts of southern Bihar to conserve land and soil. In the 2022-23 financial year, as part of water management development, 400 concrete check dams, 694 obstruction dams, 1,684 maintenance units, 440 hectares of embankment, 103 rejuvenated irrigation wells, 174 dugout ponds, 12 community tanks, 69 farm ponds, and 146 water conservation ponds have been constructed. With the construction of these structures, irrigation facilities will be available in a total of 12,920 hectares.
  • Under this campaign, 18,269 encroachments on water conservation structures such as ponds, lakes, embankments, and check dams, and 11,525 wells have been removed. A total of 11,236 ponds/lakes, 8,307 public embankments, 21,052 public wells, and 24,852 (urban and rural) wells have been renovated. In urban and rural areas, 135,937 public wells/ hand pumps and other water structures have been constructed. In small rivers, streams, and mountainous areas, 12,642 check dams and water conservation structures have been constructed. A total of 23,409 new water sources (lakes) have been created under the creation of new water sources. A total of 13,672 rooftop rainwater harvesting structures have been constructed in buildings.

 

• 5 per cent exemption in holding tax:

  • A provision for a 5% exemption in holding tax is made under Rule 11(3) of the Bihar Municipal Property Tax Rules, 2013 for the construction of structures for rainwater harvesting.


• Solar energy:

  • Systems based on solar power have been installed in 2,216 government offices to encourage the use of solar energy and conserve energy. Additionally, emphasis is being placed on energy conservation in all government offices. A total of 12 megawatts peak (MWp) grid-connected rooftop solar power plants are being installed on all district offices, primary health centers, higher secondary schools, ITIs, and panchayat government buildings in the state, with 10 MWp capacity already installed.
  • Under the Jal-Jeevan-Hariyali campaign (phase 2), Bihar Renewable Energy Development Agency (BREDA) is installing 'grid-connected rooftop solar power plants' with a capacity of approximately 20 MW on nearly 1,200 government buildings, and work has been completed on installing grid-connected rooftop solar power plants with a capacity of approximately 1MW on 50 buildings. Installation work is in progress on the remaining buildings.
  • In order to promote solar energy production, the state government has decided to use land available in Kajra (Lakhisarai) and Peerpainti (Bhagalpur), which was previously acquired for thermal power projects, for solar energy projects. Work is underway to install solar energy projects with a capacity of approximately 450MW on both of these sites, along with battery storage.
  • Under Niche machli, upar bijli project, the construction work of a 1.6 MWp capacity floating solar power plant in Darbhanga district and a 0.525 MWp capacity floating solar power plant in Supaul district has been completed and energized.

 

• Land and Water Conservation:

  • To achieve the objectives of land and water conservation, a Centre of Excellence will be established. A total of 562 'telemetry' systems have been installed in the district headquarters and subdivisions of the state for the monitoring of groundwater.
  • Under the Center of Excellence in Veerpur under Supaul district, work is underway to establish a Physical Modeling Center at a cost of ₹108.93 crore. This center will be the second ultra-modern and excellent institution in the field of water science in the country after the Central Water and Power Research Station (CWPRS) in Pune. Models of various components of the river will be prepared and studied in this center. This study will not only help in flood management in Bihar but also in nearby states, and there will be improvements in flood risk management.

 

• Gayaji Dam:

  • The Gayaji Dam (also known as the Rubber Dam) project was completed in September 2022 using the latest technology at a cost of ₹334.38 crores by the state government to ensure availability of water throughout the year in the Falgu River near the Vishnupad Temple in Gaya. Thousands of tourists visit the dam every day. 
  • The project is also effective in recharging groundwater and providing drinking water. The availability of holy Ganges water in the region of salvation has increased the religious significance of this place many times over. 
  • The Central Board of Irrigation and Power has announced the CBIP Award 2022 for the Ganges water supply project and the rubber dam built on the Falgu River.

 

• Gangetic dolphin:

  • The Ganges River Dolphin (Platanista gangetica) , also known as the "Susu" in colloquial language, is included in Schedule-I of the Wildlife Protection Act, 1972. It is a freshwater aquatic mammal that feeds mainly on small fish. Its presence helps control river pollution. The International Union for Conservation of Nature (IUCN) considers the Ganges River Dolphin to be in the "Endangered" category, on the verge of extinction. 
  • The main threats to the Ganges River Dolphin are pollution, river dredging, water vessels, hunting, etc. It is necessary to work for the protection and conservation of this species. To achieve this goal, the state government is establishing the National Dolphin Research Centre in Patna, at a cost of ₹30.52 crore, the work of which will be completed soon.
  • The Gangetic River dolphin was officially discovered in 1801. In the year 1990, the state government declared the stretch of the Ganges river from Sultanganj in Bhagalpur district to Kahalgaon as the Vikramshila Gangetic Dolphin Sanctuary for the protection, conservation, and development of the Gangetic dolphin. 
  • In response to the initiative of the Hon'ble Chief Minister, the Central Government declared the Gangetic dolphin as the National Aquatic Animal on 5th October 2009, and Dolphin Day is celebrated every year on 5th October
  • In a survey conducted by the Zoological Survey of India (ZSI), Tilka Manjhi University, Bhagalpur, and the Wildlife Trust of India (WTI) in 2019, a total of 1,464 Gangetic dolphins were found in Bihar, which is half of the total Gangetic dolphin population in India.

Note: Gangetic dolphins are distributed across seven states in India (Assam, Uttar Pradesh, MP, Rajasthan, Bihar, Jharkhand and West Bengal) and found in rivers Ganga, Ghagra, Gandak, Chambal, Son, Kosi, Brahmaputra and Kulsi.

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• The green cover of the state:

  • In the year 2000, after the division of Jharkhand-Bihar, the green cover of the state was only 9%. The Bihar government has continuously made efforts to increase it. 
  • In the year 2012, the 'Hariyali Mission' and in the year 2019, the 'Jal-Jeevan-Hariyali Abhiyan' were launched to increase the green cover and limit the adverse effects of climate change. For this, special emphasis was given to afforestation work both inside and outside forest areas. 
  • To increase the green cover, a total of 18.47 crore trees were planted in Agriculture Road Map-II (2012-17) and an updated 16.10 crore trees were planted in Agriculture Road Map-III (2017-23).

• Increase in Green Cover:

  • Bihar Government has assessed the green cover of the state using High Resolution Satellite data (Liss-IV, 5.8 m) by the Indian Forest Survey Institute, Dehradun. According to this survey, the state's green cover has increased to about 15 per cent. The target is to increase it up to 17 per cent
  • The state government has set a target of planting 3 crore (through the Forest Department and MGNREGA) trees in the year 2023-24. The state's forest area is limited, and the possibility of afforestation is mainly on private land of farmers. Therefore, the participation of rural people and livelihoods is essential in tree-planting activities. 
  • Under the Agriculture Horticulture Scheme, as an incentive based on biodiversity, farmers are given ₹ 60 per plant. To increase green cover in the state, livelihoods and farmers are also being involved in nursery activities. The target for the year 2023-24 is to plant 1 crore plants in a total of 500 nurseries by livelihoods and farmers.
  • Under the Jal-Jeevan-Hariyali campaign, 1.47 crore trees have been planted through the financial year 2022-23 under the MNREGA scheme. Approximately 10.70 crore plants have been planted under the nursery creation and dense plantation component. In the past three years, a total of 4.20 crore trees have been planted under the Jal-Jeevan-Hariyali campaign. In the financial year 2022-23, the construction of "Didi's nursery" has been started in all districts of the state with the support of livelihood under MGNREGA. This campaign will continue in the year 2023-24 as well.


• Bihar Clean Fuel Scheme 2019

  • Under the Bihar Clean Fuel Scheme 2019, funding is provided for the replacement or retrofitting of petrol/diesel auto-rickshaws with CNG-operated ones to control vehicular pollution and improve ambient air quality. 
  • A total of 1,505 vehicle owners were paid ₹4.01 crores as funding under this scheme. 
  • In Gaya and Muzaffarpur urban areas, the operation of all types of diesel-driven three-wheeler vehicles is banned, and efforts are underway to expand the Bihar Clean Fuel Scheme 2019 in these cities. 
  • Funding of ₹3.75 crores was spent to replace 50 privately-owned diesel buses with CNG buses under the Patna City Bus Service, and there are plans to replace other private buses with CNG buses as well.


(7). Infrastructure and Industrial Development

■ Infrastructure Development:

• Under the Chief Minister Rural Connectivity Scheme, a total of ₹1,757.87 crore was spent in the year 2022-23 to construct 3,238.12 km of roads and 57 bridges. The goal is to provide single-lane road connectivity to all tolls/plazas with a population of more than 250 in all districts of the state by 2023-24. The target for the financial year 2023-24 is to construct rural roads with a length of 7,408 km. A provision of ₹2,374.98 crore has been made for the year 2023-24.

• Under the Chief Minister Rural Road Conservation Program, there is a provision of ₹3,500 crores for the year 2023-24.

• Under the Rural Tola Connectivity Nishchay Scheme, construction of 3,977.30 km roads is planned to provide road connectivity for 4,643 unsurveyed rural tolas with a population of 100 to 249 for a period of twelve months. So far, construction work of 3,961.91 km has been completed, providing connectivity to a total of 4,609 tolas/tolls, and work on the remaining roads is in progress. A provision of ₹185 crore has been made for the year 2023-24.

• The proposed Patna Metro Rail Project has selected two corridors in Patna under the project. The state government has provided a sum of ₹1,670.59 crore for this project. An amount of ₹100 crore rupees has been earmarked for this purpose in the financial year 2023-24.

• Under the 4-laning of major national highways, the implementation of projects such as Patna-Gaya-Dobhi, Ara-Mohaniya, Rajauli-Bakhtiyarpur, Narenpur-Purnia, Munger-Mirza Cheuki, Galgalia-Araria, and others is being carried out rapidly. In addition, work is being done for the implementation of mega projects of other national highways such as Aamas-Darbhanga, Ram Janaki Marg (under Siwan district from Mehrauna to Sitamarhi district at Bhittha Mod), and Digha-Bettiah.

• The Bihar State Bridge Construction Corporation is carrying out several major projects, including an Elevated Corridor (₹422 crore) on Ashok Rajpath from Karagil Chowk in Patna district to Science College Bhawan, a two-lane high-level RCC bridge (₹210.13 crore) over the Son River at Panduka in Rohtas district, expansion of the 4-lane access road to the Ganga Setu project at Aguvanighat-Sultanganj in Bhagalpur district (₹209.32 crore), and construction of an additional waterway at the Sattarghat Bridge over the Gandak River.

• Bypass or flyover construction is also being carried out in urban areas as per the requirement, with a current plan to build a total of 36 bypasses under the Bypass Construction Plan for ease of access. A provision of ₹200 crore has been made for this in the year 2023-24.

• Construction of Electrical substation (33/11 KVA) under the Energy Department has achieved 291 out of the targeted goal of 291. Installation of transformers (25/63 KVA) has achieved 93,420 out of the targeted goal of 95,916. Separation of feeders has achieved 1,354 out of the targeted goal of 1,354, and the target for the management of electric pumps was 276,332, but it achieved 271,207. A provision of ₹300 crore has been made for the year 2023-24.

• Under the Motor Vehicle Driving Training Institute Incentive Scheme, a grant of 50 per cent of the cost or a maximum of ₹20 lakhs per institution is being given to private entrepreneurs to open a motor vehicle driving training institute. Construction work has begun in a total of 62 schools in different districts of the state, and the construction work of 21 institutions has been completed. This will make skilled vehicle drivers available in the state and reduce road accidents.

 

■ Industrial development

There are several plans proposed for industrial development in this year's budget.

•The State Single Window Portal has been established to make the Investment Promotion Council more effective, and arrangements have been made for the resolution and implementation of applications/problems within 07 days, and this year 95.38 percent of cases have been resolved. The state's new Single Window Clearance Portal has also been integrated with the National Single Window Portal.

Ethanol policy and establishment of ethanol plants in the state: In this process, discussions were held with industry experts, industry associations, investors, and subject experts to prepare the Ethanol Production Promotion Policy, 2021. This policy has made investment in the ethanol sector more attractive, which is proving to be successful. In addition, the country's first green field ethanol plant has started in Purnia. There are 17 ethanol units under construction in Bihar.

• In addition to this, with the efforts of the state government, a LPG Gas bottling plant, the largest in eastern India, has been started in Barauni with an investment of ₹550 crores.

• A Khadi mall is being established in Muzaffarpur and Purnia, for which approval of ₹16.50 crores has been granted.

 ■ Tourism:

  • Work on the 6 ropeway projects, including the Pretshila, Dungeshwari, and Brahmayoni hills in Gaya, the Vanavar hill in Jehanabad, the Mundeshwari hill in Kaimur, and the Rohatasgarh fort in Rohtas, will begin to complete the plan.
  • A huge statue of Lord Buddha will be installed on Dungeshwari Mountain in Gaya district.

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(8). Urban Development

 • The government strives to develop cities in line with national standards, make them beautiful, and provide citizens with better basic facilities. The reward for the government's efforts is that Supaul has received One Star Rating in the Garbage Free Cities (GFC) certification category.

• In 2021, there were 24 ODF+ cities, while in 2022, 32 cities in Bihar, including Patna Municipal Corporation, were declared ODF+ certified.

• At the national level, Hajipur, Buxar, Jamalpur, and Sultanpur from the Ganga town municipalities have been ranked in the top 10.

(Read more on Swachh Survekshan 2022 Bihar's data)

• The development of stormwater drainage systems has been initiated in all cities to prevent any waterlogging issues. The plan has been implemented in the municipal areas first. A plan worth ₹957.51 crores has been approved for stormwater drainage systems in 9 catchment areas for water drainage from Patna city and its neighboring areas such as Khagaul, Danapur, and Phulwari Sharif. For solving waterlogging issues, plans for constructing large outfall drains have been proposed in 42 municipalities, and plans for stormwater drainage are proposed in Saharsa, Sasaram, Madhubani, Supaul, Chhapra, Katihar, and Darbhanga cities. A provision of ₹276 crores has been made for all these plans in the year 2023-24.

 Emperor Ashoka Building Construction: Decision has been taken by the state government to construct Emperor Ashoka Building in all municipal corporations as a multi-purpose urban building for various level of events. The plan for construction of Emperor Ashoka Building has been approved in 103 out of 141 municipal corporations where work is ongoing.

Construction of Bus Stand: The construction of a total of 38 bus stands has been approved in the state, out of which 27 bus stands have already been completed and work on 4 bus stands is in progress. Vehicle operations are being carried out from Patliputra Bus Terminal (Interstate Bus Terminal, ISBT) in Patna. Additionally, the construction of Patli Bus Stand is proposed to be carried out in the Bihita circle of Patna district.


Individual toilets are being constructed for convenience, and community cleanliness areas are being built. Under the Lohiya Swachh Bihar Campaign - Phase II, provision is being made to establish a plastic waste processing centre at the block level for proper disposal of plastic waste.

• In rural areas, in order to provide easy access to toilets to landless families, especially Scheduled Caste/Scheduled Tribe families, and the temporary population, construction of community cleanliness areas/cluster toilets will be done in the remaining gram panchayats as per the requirement in 2023-24.

 

Shelter Homes for the Elderly: An allocation of ₹20 crore has been made in the year 2023-24 for the establishment of shelter homes for the elderly in the 38-district headquarters of the state.

 Policy for Multi-Story Housing for Urban Poor: Action is being taken to determine the policy for multi-story housing for urban poor and an allocation of ₹35 crore has been made for this purpose in the year 2023-24.

 Construction of Crematoriums with Electric Crematoriums on all Cities and Important River Banks: Crematoriums with electric crematoriums are to be constructed on all cities and important river banks, where necessary facilities will be available for people for cremation. Approval has been received for the construction of 35 out of a total of 43 proposed crematoriums with electric crematoriums. An allocation of ₹120 crore has been made for this purpose in the year 2023-24.

 

(Note: No new schemes were initiated in the Bihar’s budget 2023-24.)

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■ Few Definitions:

■ Gross State Domestic Product (GSDP): GSDP is defined as a measure, in monetary terms, of the volume of all final goods and services produced within the boundaries of the State during a given period of time.

ReceiptsThe receipts of the government shows different sources from which the government raises revenue. These receipts are of two kinds:
  1. Revenue receipts, and 
  2. Capital receipts.

■ Revenue receipts (RR) : These are current income receipts from all sources such as taxes, profits of public enterprises, grants, etc. Revenue receipts neither create any liability nor cause any reduction in the assets of the government.  They are therefore termed non-redeemable. They are divided into:
  1. Tax revenues, and 
  2. Non-Tax revenues.
 Capital receipts (CR): All those receipts of the government which create liability or reduce
financial assets are termed capital receipts. They also refer to incoming cash flows. Capital receipts can be both Non-Debt creating Capital Receipts (NDCR) and Debt creating Capital Receipts (DCR).

The major sources of capital receipts are:
  1. Borrowings ( In case of Central Government  through sale of Treasury Bills, G-Sec etc.; for State Government through State Development Loans (SDLs) )
  2. Recovery of Loans ( For Center-  recoveries of loans from State and Union Territory Governments and other parties; For States- Recovery of loans and advances given by states)
  3. Loans received from foreign Governments and bodies
  4. Money received from sale of assets such as land, and disinvestment
Expenditure: The expenditure of the government shows funds allocated for the disbursement to the different Ministries and Departments. Government expenditure is classified into two broad categories:
  1. Revenue expenditure, and
  2. Capital expenditure  

■ Revenue Expenditure (RE): Revenue Expenditure or Expenditure on Revenue Account means the expenditure on current consumption of goods and services and establishment expenditure of a department for activities of non-capital character. Broadly, the expenditure which does not result in creation of physical or financial assets for the government is treated as revenue expenditure.

Revenue expenditure of a department also reflects all charges for maintenance and working expenses of a project, such as, renewals, replacements, improvements, and extensions. Grants-in-aid, subsidies and interest payments are also debitable to the revenue account.

Revenue Surplus: This means excess of revenue receipts over revenue expenditure.
i.e. Revenue Surplus = RR - RE

Revenue Deficit: This means excess of revenue expenditure over revenue receipts.
i.e. Revenue Deficit = RE - RR


Capital Expenditure (CE): Capital Expenditure or Expenditure on Capital Account is expenditure incurred with the objective of creating new assets or increasing value of existing assets of a material and permanent character. Broadly, the expenditures of the government which result in creation of physical or financial assets or reduction in financial liabilities, is treated as capital expenditure.

Capital expenditure includes expenditure on the acquisition of land, building, machinery,
equipment, investment in shares, and loans and advances by the central government to state and union territory governments, PSUs and other parties. It also includes investments where the benefits from the investments are available beyond the year.


■ Capital and Revenue AccountsCapital accounts include those transactions of the State Government which have long term implications. For example, borrowing is a capital receipt, and investment in roads is a capital expenditure. On the other hand, revenue accounts include those transactions that have implications only for the current year. For example, collections under GST (revenue receipt) and payment of salary (revenue expenditure).


■ Fiscal Deficit (FD): It is the difference between the total expenditure of Government by way of revenue, capital and loans net of repayments on the one hand and revenue receipts of Government and capital receipts which are not in the nature of borrowing but which accrue to Government on the other.

Fiscal Deficit = Total expenditure – (Revenue receipts + Non-debt creating Capital Receipts)


In simple terms, the fiscal deficit is the difference between the government’s Total Expenditure (TE) and its Total Receipts (TR) excluding Borrowing.
 
Mathematically this can be written as,  FD = TE - (TR - Borrowing) 
=>  FD = TE - TR + Borrowing
=>  FD = TE - ( RR + CR ) + Borrowing  
=>  FD = TE - ( RR + NDCR + DCR) + Borrowing
=>  FD = TE - ( RR + NDCR + DCR  ) + Borrowing
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=>   FD = TE - ( RR+ NDCR ) 


■ Primary Deficit: The deficit obtained by subtracting Interest Payments from the Fiscal Deficit of the State in a given financial year, is called the Primary deficit. 
The primary deficit corresponds to the net borrowing required to meet expenditure excluding the interest payments. A negative figure for primary deficit would represent primary surplus.

Primary deficit = Fiscal deficit - Interest Payment 

A low Primary deficit is not healthy for the economy as it shows a large amount of Fiscal deficit is for the Interest payment.
A high Primary deficit shows that the Fiscal deficit may be due to structural factors rather than interest payments,


 Consolidated Fund of Bihar: It means a consolidated fund constituted of all revenues
received by the Government of Bihar, all loans raised by it by the issue of treasury bills,
loans or ways and means advances and all money received by it in the repayment of
loans.


■ Budget estimates (B.E): These are the detailed estimates of the receipts and expenditure of the financial year.

Revised estimates (R.E): This means an estimate of the probable receipts or expenditure for a financial year framed in the course of that year with reference to the transactions already
recorded and anticipations for the remainder of the year in the light of the orders already
issued or contemplated or any other relevant facts.

■ Constant prices are a way of measuring economic change considering a year as base year as in this case, it is 2011-12. It gives the real Gross State Domestic Product (GSDP) growth.

Constant prices adjust for the effects of inflation, while computing GSDP. Use of constant prices enables measurement of the actual change in output, correcting for the effects of inflation.

■ Current prices are a way of measuring economic change considering price prevailing in the same year. It gives the nominal Gross State Domestic Product (GSDP) growth.

Public Debt: Public debt means 

(i) internal debt of the State Government and 

(ii) loans and advances received from the Central Government.

 Indradhanush (Rainbow) Revolution: Rainbow revolution is an integrated development programme of agriculture, horticulture, forestry, sugarcane, fishery, poultry and animal husbandry.


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■ References:

• Bihar Budget, 2023-2024 & previous budget documents

• Bihar FRBM statement

• Bihar Economic Survey 

• Directorate of Economics and Statistics, Government of Bihar

• India Budget

• Economic Survey of India


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