Ranchi: The economy of the state is expected to grow at 6.8 percent in the ongoing financial year according to the Economic Survey which was tabled on Monday in the assembly during the ongoing Budget Session. “After the drought of the year 2015-16, the economy has bounced back to the phase of high growth. The average annual growth rate (AAGR) for the last three years (2016-17 to 2018-
19) has been 8.2 percent. Last year it grew by 6.7 percent and in the current financial year it is estimated to grow at the rate of 6.8 percent,” the Economic Survey said adding that the economy has shown its resilience by bouncing back in economic performance after a slump caused by factors beyond its control namely failure of monsoon of unfavorable external situation.
The New Monetary Policy Framework which was adopted in the year February 2015 has helped in moderation of the inflation rate and keeping it within control. For the last three years, the inflation rate has also remained in control within permissible limits as the average rate of inflation in the financial year was 5.3 percent and in the financial year 2017-18 it was 3.9 percent and in the year 2018-19 it is estimated to be 3 pc only. The survey further pointed out that the debt sustainability except for the year 2015-16, 2016-17 and 2017-18 the net borrowing of the state has been well within the borrowing ceiling in the state. In the year 2015-16, the state crossed the borrowing ceiling because of inclusion of the loans taken under UDAY Yojana worth Rs 5553.37 crore.
Though the net borrowing ceiling crossed in the year 2016-17 and 2017-18 in the current financial year it has been maintained well within the limits. On the other hand, the fiscal deficit of the state has been compliance with the FRBM target except for the year 2015- 16, 2016-17 and 2017-18. The Economic Survey pointed that the budget estimates for the year 2018-19 show a decline in the fiscal deficit to 2.61 percent of the GSDP which is well within the limits of FRBM. However, the survey pointed out that growth in Jharkhand has not been uniform across the state.
The tertiary sector has been the fastest and the agriculture, forestry and fishing the slowest growing sectors of the state economy. Though the manufacturing sector has performed well the construction and electricity gas water supply and other utilities sub-sectors— the other constituents of the industrial and secondary sectors have not performed well.