State GDP to contract by 6.9%: Economic survey

The contraction in state economy was attributed to the global pandemic triggered by the outbreak of Covid-19

RANCHI: The real gross state domestic product (GSDP) of Jharkhand will contract by 6.9% (3.2% in nominal GSDP) in the current fiscal as compared to last year, according to a 2020-21 economic survey tabled in Jharkhand assembly by finance minister Rameshwar Oraon on Tuesday.

However, the contraction of GSDP was less than the national GDP decline of 7.5%.

The GDP is estimated to be ₹223,566 crore at constant prices and ₹244,805 at current prices in 2020-21 and was expected to recover in the next financial year. The contraction in state economy was attributed to the global pandemic triggered by the outbreak of coronavirus infection.

The survey also predicted that the state’s growth rate would be 1% (nominal) and 4.9% (real) of the GSDP between the financial years 2019-20 and 2021-22.

The survey showed that the GSDP grew by 6.7% in 2019-20 and stood at ₹240,036 crore, mainly due to growth of tertiary sector (hotels, restaurants, communication and services related to broadcasting, real estate, ownership of dwelling and professional services) that grew at the rate of 7.9%.

The survey mentioned that the average annual per capita income grew by 11.6% at current prices from 2011-12 to 2019-20 and stood at ₹57,863 crore at constant prices and ₹79,873 crore at current prices.

It also found that inflation increased in the same year (after October 2019) and crossed the 6% RBI benchmark and continued unabated.

The survey said Jharkhand came out of multi-dimensional poverty index over the years. The percentage for the same decreased from 74.7% in 2005-06 to 46.5% in 2015-16.

The total state receipts grew at an average annual rate of 12.1% between 2014-15 and 2019-20.

The revenue receipts grew by 13.1% and capital receipts by 7.8%.

The survey also mentioned the average buoyancy of state taxes as well.

Regarding state expenditure, the report said it was increased at the compound annual rate of 12.1% between 2014-15 and 2019-20 (increased by ₹70,000 crore). It is estimated to arrive at ₹86,000 crore in the current year.

The credit-deposit ratio of Jharkhand too decreased over the years. While deposits grew at an average annual rate of 9.9%, credit grew by 7.9% in five financial years till the current year.

Besides, the survey boasted of rural development programmes, especially in MNREGA and job creation. By January 2021, 103.72 lakh workers were registered under MNREGA.

However, it pointed out urban inequalities in terms of income despite efforts.

It also showcased agricultural outputs in positives that includes output of Rabi and Kharif crops, besides fruits.

It also mentioned decrease in the rate of unemployment (8.7 % in 2017-18 to 5.5% in 2018-19 in the age group of 15 to 59 years).

The health sector too made a marked improvement, particularly in infant mortality and nutrition, the survey report said.

Infant mortality recorded a fall from 34 to 31 per 1,000 in between 2011 and 2015.