Status of Fiscal Health in Bihar

Abstract

With the completion of twenty-five years of bifurcation of Bihar, the time seems apt for an analysis of the fiscal health of the state. With the major revenue earning mineral and natural base moving into Jharkhand it remains to be seen as to how the various sources of revenue have performed. The present state of Bihar is largely an agrarian economy which is a nontaxable sector in the country. So, it remains a challenge for the state to mobilize revenue in the absence of varied taxbase options. The present paper dwells into the various sources of revenue for the state, their trends as well as their relation with respect to growth in Gross State Domestic Product (GSDP) of Bihar.