Bihar registers 15.05% GSDP growth in 2021-22: CAG audit report

The CAG report which was placed in the state assembly on Thursday added that Bihar is the third among the top 10 states in reviving its economy after the Covid pandemic

Bihar has registered the highest gross state domestic product (GSDP) of 15.05% in 2021-22, the state finance audit report (March 2022) of Comptroller and Auditor General of India (CAG) stated.

During 2021-22, the GSDP growth rate was recorded at 15.05%. (Bihar Legislative Assembly)

The CAG report which was placed in the state assembly on Thursday added that Bihar is the third among the top 10 states in reviving its economy after the Covid pandemic.

The CAG report on state finances has observed that the state witnessed an increase in revenue receipts of ₹30,630 crore (23.90%) during 2021-22, in comparison to 2020-21, primarily due to increase in share of union taxes and own tax revenue.

On the GSDP growth rate, the CAG report said the GDP of India was recorded at (-)1.36% in 2020-21, over the previous year.

Compared to this negative trend, the growth rate of GSDP of Bihar was recorded at 0.80% in the pandemic year 2020-21.

During 2021-22, the GSDP growth rate was recorded at 15.05%, highest during the last five years from 2017-18 to 2021-22.

Further, the CAG report has said that Bihar’s fiscal deficit as a percentage of GSDP for the year 21-22 was within the revised targets of the BFRBM (Bihar Fiscal Responsibility and Budget Management), but the same was not according to the budget estimates.

Significantly, the CAG has red flagged the state government on outstanding abstract contingent (AC) bills and utilisation certificates (UCs).

The report has said a total of 25,928 AC bills worth ₹7,629.79 (against withdrawals) were outstanding (pending for detailed contingent bills submission for reconciliation against withdrawals) as on March 31, 2022.

“Advances drawn and not accounted for added to the possibility of wastage/misappropriation of government funds,” the CAG report observed.

The central auditor has also pointed out that 954 AC bills amounting to ₹572 crore were drawn in March 2022 of the fiscal years 21-22, indicating that withdrawals were made, primarily to exhaust the budget provisions and revealed inadequate budgetary control.

The report also said that 23,188 UCs amounting to ₹99,178.89 crore, which became due (drawn up to August 2020) for submission, were not submitted by the bodies and authorities of the state, against grants-in-aid provided by the state government.

The CAG has also highlighted that an amount of ₹4,041 crore was lying in personal deposit (PD) accounts at the end of March 2022.