Bihar economy in dire straits: Report
Subodh Ghildiyal
[ Friday, November 25, 2005 01:33:26 am, TIMES NEWS
NETWORK ]


NEW DELHI: Bihar's fiscal position turned alarmingly
weak while its performance was poor in road and
education sector.

The findings form part of the annual plan review of
2004-05 where the state failed to meet targets of
expenditure and works. The fiscal situation is weak to
such an extent that it is impossible for it to raise
loans from the market.

That has put its share of Accelerated Irrigation
Benefit Programme (AIBP) in the risk of
non-implementation. Bihar has sought to be exempted
from the revised guidelines of AIBP which say that
states should raise loans through market borrowings.

Bihar has requestedto be treated as a special case and
that the Centre continue with the previous norms of
giving 70% loan component, at least for schemes
included in AIBP or planned to be put under it.
The review concurs with the state's view as it was a
fiscally weak state and Centre's endeavour was bound
to fail which will hit the progress of the projects
under AIBP.

Pradhan Mantri Gramin Sadak Yojna (PMGSY) works fell
behind for many amusing reasons and their
implementation, done through the state agencies, had
to be taken over by the Centre.

The reason was that there was a shortage of engineers
at the levels of junior engineer, superintending
engineer, chief engineer and engineer-in-chief in
rural development.

Also, there was a lack od of qualified eligible
contractors who had a financial capacity of over Rs 1
crore and could execute work in 6 to 9 months.
Also lacking in contractors was technical competence
and experience. Due to slow progress on Phase I and
II, the work on Phase III and IV is now being done by
ministry of rural development through NBCC, NPCC,
CPWD, NHPC/IRCON. Seventeen packages of Phase I and IV
which include 63 roads costing Rs 26 crore have been
given to MRD.

Educationally, the state has abysmally low literacy
figures. It has the most number of districts — 14 —
with female literacy rate between 20% and 30%. The
state has the lowest female literacy rate in the
country at 33.57%.

The performance under the Sarva Shiksha Abhiyan too
was lax with the state not supplying textbooks
regularly and completing only 14 of the sanctioned
schools out of 2469.
It, however, crossed the target under edcuation
guarantee schemecomponent of SSA. Bihar could use only
29% of the money under National Food for Work
programme launched in November 2004.

While the February elections were a reason for not
taking up new works after notification, officials do
not agree with the reasoning for such a low
consumption of money.

The state created 54.96 lakh mandays in the 15
districts under the NFWP. Only Rs 77.78 crore of total
available Rs 264.12 crore was spent.

Sources in the government said that six of the 15
districts could not spend 60% of the funds which made
them ineligible for receiving first instalment of the
next year.




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