The pace of development in Jharkhand will be more than India in 2023-24, read the analysis of economist Harishwar Dayal

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According to the Economic Survey of the year 2022-23 Economy of Jharkhand Not only has it completely recovered from the economic recession of 2019-20 and the bad effects of Covid-19 and the lockdown caused by it in the year 2020-21, but development has also picked up pace. In the years 2022-23 and 2023-24, its growth rate is expected to be higher than the country’s growth rate.

Corona had derailed the economy

of the year 2019-20 financial crisis And the epidemic of the year 2020-21 had derailed the economy of the entire country. The economy of Jharkhand did not remain untouched by their effects. While the growth rate of the state had slowed down due to the economic recession of the year 2019-20, its income declined due to the Kovid-19 pandemic of the year 2020-21.

Jharkhand’s income declined by only 5.5 percent

But, due to the efficient management of the circumstances arising out of this epidemic, the income of the state did not fall as much as the income of the country. While the country’s income declined by 6.6 percent in the year 2020-21, Jharkhand’s income declined by only 5.5 percent.

improvement in the economy

Despite the second and third wave of the Kovid-19 epidemic, the state’s economy improved in the year 2021-22. The state’s growth rate in the financial year 2021-22 was 8.2 percent. It is estimated to be 7.8 percent in the current financial year (2022-23) and 7.4 percent in the year 2023-24. The country’s growth rate is estimated to be 7 percent in the year 2022-23 and between 6 to 6.8 percent in the year 2023-24. In the last few years, on an average, the growth rate of Jharkhand has been more than the growth rate of the country.

inflation in jharkhand

Like other states of the country and the country, the inflation rate (price growth rate) in the year 2022 was also high in Jharkhand. Except July and November 2022, the state’s inflation rate in other months of the period from January 2022 to December 2022 remained higher than the rate of 6 percent set by the ‘New Monetary Policy Framework’ of the Reserve Bank of India (RBI).

Inflation eases in November, December 2022

This year only in the period from January 2022 to May 2022, the inflation rate of the state was marginally higher than the inflation rate of the country. In all other months, Jharkhand’s inflation rate was less than the country’s inflation rate. In Jharkhand, the price of fuel & light and clothing & footwear increased at a faster rate than other commodity groups during August 2021 to December 2022. The inflation rate of the state came down in November and December 2022 due to the decrease in the rate of increase in the price of these items.

poverty in jharkhand

Poverty is calculated in terms of multidimensional poverty in the years now. In our country, poverty is measured on the basis of NFHS data. In 2014-15 it was calculated on the basis of NFHS-IV and in 2019-2021 it was calculated on the basis of NFHS-V.

13 percent reduction in poverty

Between 2015-16 and 2019-21, poverty (head count ratio) decreased by about 13 percent in Jharkhand. In the year 2015-16, 42.16 percent people in the state were multidimensionally poor. 50.93 percent people in rural areas and 15.26 percent people in urban areas were found to be multidimensional poor.

There has been a decline in poverty in Jharkhand due to improvement in indicators of health and education and standard of living of the people. In the year 2019-21, the percentage of multidimensional poor decreased to 36.6 percent, it decreased to 42.2 percent in rural areas and 11.1 percent in urban areas.

Employment status and unemployment in Jharkhand

The Labor Force Participation Rate (LFPR) and Worker Population Ratio (WPR) in Jharkhand are higher than the all India average. Like the rest of the country, most of the workers in the state are self-employed and are employed on very low regular wages. About 55 percent of the workers of the state are engaged in the agriculture sector.

There has been a decline in the unemployment rate

Usual Status PS+SS unemployment rate in Jharkhand is not only lower than the country’s average but it has also declined in the last few years. In the year 2017-18, unemployment in all (0+) age groups in Jharkhand was 7.7 percent in usual status (PS+SS), which decreased to 3.1 percent in the year 2020-21. Thus, the unemployment rate across all age groups has decreased at an average annual rate of 26.2 percent between 2017-18 and 2020-21.

Unemployment increased even in the second wave of Corona

When the first wave of Corona came, there was a significant increase in the current weekly unemployment rate (current weekly status). But, as soon as the effect of Corona subsided, it declined rapidly. From July 2020 it came back to normal level. Even during the second wave of Corona, there was an increase in unemployment between April and June 2021, but it declined again as the effect of Corona subsided.

Jharkhand also has high unemployment among the educated

As in the rest of the country, unemployment in Jharkhand is high among the educated and low among the illiterate and those with low educational qualifications. The reason for high educated unemployment, lack of jobs for the educated on the one hand and the limitations of the current education pattern on the other, which have failed to bridge the gap between the availability of skilled and educated persons in the economy and the need for skills.

financial position of the state

For the last two years (after Corona), the financial condition of the state is continuously getting stronger. Compared to the previous year, there has been an increase of about 24 percent in the revenue receipts of the state in the year 2021-22 and an increase of about 19 percent is estimated in the current financial year (2022-23). There was an increase of about 10 percent in the total expenditure of the state in the year 2021-22 and it is estimated to increase by about 30 percent in the current financial year (2022-23 BE).

state deficit

Jharkhand has mostly been a revenue-surplus state. The revenue-surplus has been used for creation of capital assets in the state. The state’s fiscal deficit has mostly been within the FRBM limit. In the year 2021-22, it was 0.76 percent of GSDP. In the current financial year (2022-23 BE), it is estimated to be 2.81 percent of GSDP.

loans and liabilities

The debt-GSDP-ratio of the state has been less than 35 percent and the interest-revenue-receipt ratio less than 10 percent for the last two years. The net borrowing of the state has also been within the borrowing limits prescribed for the state. Thus the state public debt is also sustainable.

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