Bihar's growth surpasses national average: State finance minister

Yadav said, Bihars economy posted a strong growth as the Gross State Domestic Product GSDP recorded a robust growth of 13.1 per cent, whereas the national growth rate was 9.8 per cent during the same period 2024-25. Bihars fiscal trajectory demonstrates disciplined financial management with the total expenditure by the state government increasing from Rs 1.66 lakh crore in 2020-21 to Rs 2.82 lakh crore in 2024-25.

Bihar Finance Minister Bijendra Prasad Yadav on Monday said the state recorded a 13.1 per cent growth in the 2024-25 financial year, which was better than the ''national average of 9.8 per cent''. The minister tabled the Bihar Economic Survey for 2025-26 in the assembly on the inaugural day of the budget session, and asserted that the state was progressing along a ''high-growth trajectory'', supported by ''macroeconomic stability, sectoral diversification, increased investment, and a sustained focus on human capital development, employment generation and infrastructure enhancement''. Yadav said, ''Bihar's economy posted a strong growth as the Gross State Domestic Product (GSDP) recorded a robust growth of 13.1 per cent, whereas the national growth rate was 9.8 per cent during the same period (2024-25).'' Bihar's fiscal trajectory demonstrates ''disciplined financial management'' with the total expenditure by the state government increasing from Rs 1.66 lakh crore in 2020-21 to Rs 2.82 lakh crore in 2024-25. The state government consistently prioritised outlay in sectors such as education, health, energy, transport, irrigation and agriculture, while maintaining fiscal prudence through moderate borrowing and effective debt servicing, he said. The proportion of capital expenditure in the total outlay by the state government rose significantly from 15.8 per cent in 2020-21 to 22.3 per cent in 2024-25, the minister said. The share of revenue expenditure declined from 84.2 per cent to 77.7 per cent. This structural change underscores the government's focus on long-term investment, infrastructure development, and asset creation, he said. ''The state government's revenue receipts increased from Rs 1.28 lakh crore in 2020-21 to Rs 2.18 lakh crore in 2024-25, with tax revenue emerging as the dominant source,'' he said. The share of tax receipts in the total revenue rose from 70 per cent to 84 per cent, while non-tax revenue declined from five per cent to two per cent, and grants-in-aid decreased from 25 per cent to 14 per cent over this period. The share of scheme expenditure in the total state government outlay increased from 38.3 per cent in 2020-21 to 39.9 per cent in 2024-25, while the proportion of the establishment and committed expenditure declined slightly from 61.7 per cent to 60.1 per cent. ''This trend reflects a gradual shift toward welfare initiatives and policy-driven development priorities'', said the FM. According to the provisional estimates for 2023-24, released by the Directorate of Economics and Statistics, agriculture, forestry, and fishing together accounted for 23.1 per cent of the Gross State Value Added (GSVA), according to the survey. Between 2023-24 and 2024-25, rice production increased by 4.3 per cent, wheat output rose by 7.1 per cent, and maize grew by 12.6 per cent. The total horticulture production in the state was estimated at around 230 lakh tonnes in 2023-24, up from about 206 lakh tonnes in 2019-20, with fruits and vegetables accounting for the bulk of the output, the state finance minister said. Over the past 19 years, the expenditure on social services increased steadily, rising over fifteenfold between 2005-06 and 2024-25. Spending on health and education also grew significantly by 14.8 times and 13.2 times, respectively, he said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)