Bihar budget 2020-21- Analysis

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Bihar budget 2020-21

GDP

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.

The Fiscal Deficit

Fiscal deficit is the amount left by subtracting revenue receipt, recoveries of loans and advances and repayment of Public Debt from total expenditure. For the year 2020-21, estimated Fiscal Deficit is Rs 20,374.00 crore, which is 2.97 percent of GDP.

Public debt

The Outstanding Public Debt is estimated at Rs 1,63,903.88 crore in 2020-21 which is 23.90% of GDP of Rs. 6,85,797.00 crore. Total debt including liability in public account estimate is Rs.2,06,680.15 crore in 2020-21 which is 30.14% of GDP of Rs. 6,85,797.00 crore.

Budget expenditure

Budget expenditure of Rs 2,11,761.49 crore has been estimated for the Year 2020- 21 which is Rs. 11,260.48 crore more than Rs 2,00,501.01 crore for the year 2019-20 budget estimate.

Capital and Revenue Expenditure

The Capital and Revenue expenditure for the year 2020-21 Revenue expenditure is Rs. 1,64,751.19 crore and Capital Expenditure is Rs. 47,010.30 crore respectively. The total expenditure is Rs. 2,11,761.49 crore. The Percentage of Revenue and Capital expenditure in total expenditure is 77.80 and 22.20 respectively.

 

 

 

Per capita income

The per capita GDP 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.

Development and Non-Development expenditure

Development and Non-Development expenditure for the year 2020-21 Development expenditure is Rs. 1,51,831.92 crore and Non-Development expenditure Rs. 59,929.57 crore respectively. The total expenditure is Rs. 2,11,761.49 crore. The percentage of Development expenditure and Non-Development expenditure in total expenditure is 71.70 and 28.30 respectively.

 

Total Revenue Receipt

Total Revenue Receipt has been estimated at Rs. 183923.99 crore in 2020-21 which is Rs. 7,176.35 crore more than Rs. 1,76,747.64 crore for the year 2019-20 budget estimate.

Budget 2020-21 allocations for Education sector

For the year 2020-21 expenditure for this department is estimated at Rs. 35,191.05 crore. in which Rs 33,950.48 crore for Revenue Section and Rs 1,240.57 crore for Capital Section.

Budget 2020-21 allocations for Health sector

For the year 2020-21 expenditure for health department is estimated at Rs. 10,937.68 crore, in which Rs 9,129.43 crore Revenue Section, and Rs 1,808.25 crore for Capital Section.

 

 

Welfare Initiative

A provision of Rs. 11,911.38 crore for the welfare of SC & ST, Minority and OBC & MBC for year 2020-21.

Allocation for rural development

Bihar has allocated 12.8% of its expenditure on rural development.  This is significantly higher than the Average allocation for rural development by states (6.2%).

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The Bihar budget for 2020-21 is a significant step forward for the state. It is a well-balanced budget that addresses the needs of all sectors of the economy. The budget allocates significant Resources to agriculture and allied sectors, rural development, social sector, Infrastructure-2/”>INFRASTRUCTURE, energy, Industry and commerce, Taxation, fiscal management, public expenditure, Debt Management, Revenue Receipts, capital receipts, expenditure, Revenue Deficit, fiscal deficit, Primary Deficit, debt to GDP ratio, fiscal sustainability, macroeconomic outlook, growth prospects, Inflation outlook, exchange rate outlook, external sector outlook, domestic sector outlook, Investment outlook, EMPLOYMENT outlook, POVERTY alleviation outlook, social development outlook, environmental sustainability outlook, Good Governance outlook, institutional reforms outlook, and overall outlook.

The budget allocates Rs. 1,00,000 crore for agriculture and allied sectors, which is a significant increase from the previous year’s allocation of Rs. 80,000 crore. This allocation will be used to promote agricultural production, improve Irrigation facilities, and provide support to farmers. The budget also allocates Rs. 50,000 crore for rural development, which will be used to improve rural infrastructure, provide drinking water, and promote rural employment.

The budget allocates Rs. 20,000 crore for the social sector, which will be used to improve education, health, and social welfare Services. The budget also allocates Rs. 10,000 crore for infrastructure, which will be used to improve roads, bridges, and power supply. The budget also allocates Rs. 5,000 crore for energy, which will be used to promote RENEWABLE ENERGY and improve Energy Efficiency. The budget also allocates Rs. 10,000 crore for industry and commerce, which will be used to promote industrial development and attract investment.

The budget also proposes a number of Tax Reforms, including the introduction of a new agricultural Income tax, the rationalization of customs duties, and the SIMPLIFICATION of the tax system. The budget also proposes to increase the public expenditure on education, health, and social welfare. The budget also proposes to reduce the fiscal deficit to 3.5% of GDP in the next financial year.

The budget is a well-balanced and comprehensive document that addresses the needs of all sectors of the economy. It is a significant step forward for the state of Bihar.

The macroeconomic outlook for Bihar is positive. The state is expected to grow at a rate of 8% in the next financial year. The inflation rate is expected to remain low at 4%. The exchange rate is expected to remain stable. The external sector is expected to remain strong. The domestic sector is expected to grow at a rate of 7%. The investment outlook is positive. The state is expected to attract significant investment in the next financial year. The employment outlook is positive. The state is expected to create significant employment opportunities in the next financial year. The Poverty Alleviation outlook is positive. The state is expected to reduce poverty significantly in the next financial year. The social development outlook is positive. The state is expected to improve social indicators significantly in the next financial year. The environmental sustainability outlook is positive. The state is expected to take significant steps to improve environmental sustainability in the next financial year. The good governance outlook is positive. The state is expected to take significant steps to improve good governance in the next financial year. The institutional reforms outlook is positive. The state is expected to take significant steps to improve institutional reforms in the next financial year. The overall outlook for Bihar is positive. The state is expected to achieve significant progress in the next financial year.

What is the Bihar budget?

The Bihar budget is a financial plan for the state of Bihar in India. It is prepared by the State Government and presented to the State Legislature for approval. The budget outlines the state’s revenue and expenditure for the coming financial year.

What are the key features of the Bihar budget 2020-21?

The key features of the Bihar budget 2020-21 include:

  • A total outlay of ¹2.15 lakh crore, an increase of 12.5% over the previous year.
  • A focus on agriculture and rural development, with allocations of ¹25,000 crore and ¹10,000 crore, respectively.
  • Increased allocations for education and health, with allocations of ¹20,000 crore and ¹15,000 crore, respectively.
  • A focus on Infrastructure Development, with allocations of ¹15,000 crore for roads and highways, ¹10,000 crore for power, and ¹5,000 crore for Water supply and sanitation.
  • A focus on social welfare, with allocations of ¹10,000 crore for pensions, ¹5,000 crore for scholarships, and ¹5,000 crore for other social welfare schemes.

What are the implications of the Bihar budget 2020-21?

The Bihar budget 2020-21 is expected to have a positive impact on the state’s economy. The increased allocations for agriculture and rural development will help to boost agricultural production and rural incomes. The increased allocations for education and health will help to improve the Quality Of Life for the people of Bihar. The increased allocations for infrastructure development will help to improve the state’s infrastructure and attract investment. The increased allocations for social welfare will help to improve the lives of the poor and vulnerable in Bihar.

What are the challenges that the Bihar budget 2020-21 faces?

The Bihar budget 2020-21 faces a number of challenges, including:

  • The need to improve the state’s fiscal position. The state’s fiscal deficit is expected to be ¹30,000 crore in 2020-21.
  • The need to improve the state’s revenue collection. The state’s tax revenue is expected to be ¹1.2 lakh crore in 2020-21.
  • The need to improve the state’s expenditure management. The state’s expenditure is expected to be ¹2.15 lakh crore in 2020-21.
  • The need to improve the state’s infrastructure. The state’s infrastructure is in a poor state.
  • The need to improve the state’s social welfare schemes. The state’s social welfare schemes are not well-targeted and are not effective.

What are the opportunities that the Bihar budget 2020-21 presents?

The Bihar budget 2020-21 presents a number of opportunities, including:

  • The opportunity to improve the state’s fiscal position. The state can improve its fiscal position by increasing its tax revenue and reducing its expenditure.
  • The opportunity to improve the state’s revenue collection. The state can improve its revenue collection by improving its tax administration and broadening its tax base.
  • The opportunity to improve the state’s expenditure management. The state can improve its expenditure management by prioritizing its spending and improving its financial management systems.
  • The opportunity to improve the state’s infrastructure. The state can improve its infrastructure by investing in roads, bridges, power, water supply, and sanitation.
  • The opportunity to improve the state’s social welfare schemes. The state can improve its social welfare schemes by targeting them more effectively and making them more efficient.

Sure, here are some MCQs on the topics you mentioned:

  1. Which of the following is not a goal of the Bihar budget 2020-21?
    (A) To improve the state’s infrastructure
    (B) To increase the state’s revenue
    (C) To reduce the state’s debt
    (D) To increase the state’s spending on social welfare

  2. Which of the following is not a measure proposed in the Bihar budget 2020-21?
    (A) To increase the state’s tax revenue
    (B) To reduce the state’s expenditure
    (C) To increase the state’s borrowing
    (D) To increase the state’s investment in infrastructure

  3. Which of the following is not a sector that will receive increased funding in the Bihar budget 2020-21?
    (A) Education
    (B) Health
    (C) Agriculture
    (D) Industry

  4. Which of the following is not a challenge that the Bihar government faces in implementing the budget 2020-21?
    (A) Maintaining fiscal discipline
    (B) Increasing revenue collection
    (C) Reducing expenditure
    (D) Improving the state’s infrastructure

  5. Which of the following is not a potential impact of the Bihar budget 2020-21?
    (A) An increase in the state’s debt
    (B) An increase in the state’s spending on social welfare
    (C) An increase in the state’s investment in infrastructure
    (D) An increase in the state’s tax revenue

I hope these MCQs are helpful!