“Maharashtranomics†and Bihar – Part II
Following up on my earlier post, here is a neat table titled “Index of Fiscal Self Reliance”. It comes from Annexure 7 (Annex 7.10, Para 7.33) to the 12th Finance Commission Report [pdf file].
Index of Fiscal Self Reliance
| States own Revenue/Revenue Expenditure ( as %) | |||
| Average | Average | ||
| Â | ’93-’94 to ’95-’96 | ’00-’01 to ’02-’03 | |
| Â | Â | Â | |
| Andhra Pradesh | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 59.2 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 59.5 | |
| Arunachal Pradesh | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 20.3 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.5 | |
| Assam | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 30.2 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 32.7 | |
| Bihar | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 34.2 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 24.8 | |
| Chhattisgarh | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 56.7 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 58.2 | |
| Goa | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 77.9 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 74.0 | |
| Gujarat | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 79.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 58.8 | |
| Haryana | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 75.5 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 77.6 | |
| Himachal Pradesh | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 25.7 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 21.9 | |
| Jammu & Kahsmir | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 16.9 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 21.1 | |
| Jharkhand | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 34.2 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 54.4 | |
| Karnataka | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 73.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 61.5 | |
| Kerala | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 63.7 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 54.2 | |
| Madhya Pradesh | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 56.7 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 48.8 | |
| Maharashtra | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 80.1 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 67.5 | |
| Manipur | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.5 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 7.5 | |
| Meghalaya | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 19.7 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 19.4 | |
| Mizoram | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 5.6 | |
| Nagaland | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9.4 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6.9 | |
| Orissa | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 37.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 34.3 | |
| Punjab | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 69.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 57.7 | |
| Rajasthan | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 52.0 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 45.8 | |
| Sikkim | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 16.3 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 18.2 | |
| Tamil Nadu | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 68.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 64.6 | |
| Tripura | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10.2 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 13.8 | |
| Uttar Pradesh | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 42.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 41.5 | |
| Uttranchal | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 42.6 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 37.2 | |
| West Bengal | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 50.7 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 32.2 | |
| All States | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 57.0 | Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 50.2 | |
| Source : Finance Account of State Governments (various issues) | |||
*****
Note that all the states with the sole exception of Haryana have become less self-reliant in the intervening years. And while there were eight states (shaded light green) which had an index (% ) of 60% or more during ’95, the number has dropped to five (shaded pale yellow)Â in recent years.
Analyse this data in conjunction with the statistics presented in Part I of this post…and pl. share your thoughts and comments…
By the way, this data may help you better understand the context around Patriot’s comments and why he is not alone in such thoughts. More on this in the days to come.
Related Posts:
Alaskonomics and Bihar – Part IÂ
Just in case you thought India’s problems were unique
Dear Shantanu,
The need of the hour is a more balanced development of this country. The concept of allocation would be detrimental to the interests of a group as each one puts emphasis on the amount of effort it is required for a particular activity.
The contra would be to evaluate the need for the activity per se and the emphasis should be more on this concept of need rather than the effort.
To make it apparent, if we were to consider Derivates versus the need for which would be need based and which would be effort based.
The dividing line would be very thin. If we were to choose agriculture the need is very high; Any number of derivates will not get rice on our table if we had no agriculture producing it. On the contrary the loss of derivatives is not going to affect the well being of a nation if there is sufficient rice available for distribution.
The effort to produce rice can be relatively less as the sowing, replanting, weeding, threshing and the finished product can be done mechanically.
The effort to create a derivtive is much simpler; Find a fool who will part with his money and BINGO there you have it.
Though it is not so simple the equation to allocate based on methods would not be in the interest of any nation. Punjab farmers were up in arms as they used to produce the maximum wheat. Today Gujarat is up in arms against the center for the allocation of funds.
The fight for resources of every kind is growing day by day and will continue. Unless we find out a method to evaluate the need based allocation nased on the need of a particular activity this problem will grow.
The need of the hour would a an alogritham which allocates weight according the need of the activity and give it the importance it requires the allocation of financial resoureces would be a gamble.
My vote today would go to the state that produces the maximum food rather than manufacturing as would like to eat rice rather than a mechanical component!
Regards,
vck
@ vck: I wish it was that simple!!
My vote today would go to the state that produces the maximum food rather than manufacturing as would like to eat rice rather than a mechanical component!
Dear Shantanu,
I know it is not that simple. The eyes of our Educated Elite should open up and then they will understand that everything has a place under the sun.
We need to provide a thought process by which we take all along as the river does as it flows.
Let us make a beginning some where. I will try to put in my thoughts later as to some action plan we can look at.
Regards,
vck
“I will try to put in my thoughts later as to some action plan we can look at.”
Very good…Looking forward to that.
Thanks.
Dear Shantanu,
I thought that I was rambling, regarding value systems and allocation of resources based on need. Today I came across an article which is very relevant to my way of thinking.
The author is Shri Anant G. Nadkarni and he is the vice president, Corporate sustainabilty,, Tata Group. The views expressed are anyway personal.
This is a partial extract from the article which has appeared in the Economic Times, November 20th. issue, under the Guest Column and duly tuned up though the extracts have not been tampered with.
Professor Haruo Funabashi, a Japanese Professor has made a study and he has come out with a lot of STUNNING facts with respect to Japan.
20000 companies in Japan are more thn 100 years old! 1200 of them more than 200years 0ld!! 600 more than 300 years old!!! 30 of them more than 500 years old!!!! Five of them more than 1000 years old!!!!!! and one company more than 1400 YEARS OLD!!!!
Why do so many long lived companies exist in Japan? ” The answers seem simple, but quite complicated in practice”, says Prof. Funabashi, ” In Japan we say that business not only has to make money but ultimately go beyond and serve the greater purpose and well being of society”.
The stories behind these companies dwell on VALUES, family owned leadership charges with a kind of MORAL RESPONSIBILITY, for handing down a legacy for all concerned people.
It is a concious effort and one might even call it a “strategy” to internalise the philosophies of Confucianism.
Thew Swedish use the word “logaan” meaning “just right” or as described in the Bhagvad Gita as “Yukta” or well balanced”.
Japanese businessmen are considerably influenced by Chinese, Indian and Japanese philosophies. It helps VALUE the work of people;Perfection mindfullness and excellence at the workplace and fairness in engaging employees.
In our own Indian context it perhaps is like the influence of the Puranas, the Scriptures and VALUE BASED PARAMPARAS and GURU SAMPRADAYA actually have on our personal character and everyday choices in life.
The Bold letrering is mine.
The matter is within our hands and the effective tools are available in plenty with us. It is for us to take it up with both the hands and try to put things in practice.
The weakness we are suffering from is that we are trying to import attitudes and behaviours which are alien to our culture and trying to live with it, which is the cause of conflict.
A blend of both the practices will energise us and provide us with enough fuel to propel us into a new orbit of thinking and implementaion of successful processes.
Japan is suffering from the malaise of a weakned economy as it had lost focus and implemented a culture totally alien to it and the suffering is bound to make it more wary of the economic and social structures that it has imported.
I am sure as this curreent crisis comes to blow over the Japanese will tend to look anew at their existing philosophies and come to terms with it.
Today India has not learnt its lesson. It is using the old tired out techniques of the IMF to tide over the crisis. I am sure if the manadarins at the economic center look up to the past philosophies of India, please please not the Nehruvian era, but the era of the Chanakyas and the history of way past the British rule I am sure we will find jewels of ideas.
I think the problem is global but it should be managed with Indian minds as they know the smell of operating in India.
I think allocation of resources and dealing with development cannot flow from the minds of the individuals who have grown with the developed countries. They should relate to the philosophies of India, as underlined by Prof. Funabashi, as they are not alien to India, and I am sure we can work out a great deal for BHARAT.
Regards,
vck
Regards,
vck
vck: very thought-provoking…I will respond later.
Excerpts from Left exposed in waste Bengal by Ashok Malik:
…This past week, Mr Rahul Gandhi was biting in his criticism, comparing West Bengal’s poverty to the darkest zones of Orissa and virtually calling the State a basket case.
Unused to being asked tough questions by its largely captive gaggle of intellectuals and journalists, the Left Front Government is rattled. Mr Sitaram Yechury of the CPI(M) has hit back by comparing the junior Gandhi to his father, Rajiv Gandhi, who had accurately classified Kolkata as a “dying city†in the mid-1980s. The State Finance Minister has come up with trademark obfuscation to somehow prove West Bengal is actually a world leader in development.
What has hurt the Communists most is the interrogation of their failure to combat rural poverty. On April 5, the Congress released a booklet titled 30 Years of Left Front Rule in West Bengal: A Development Report Card. It quoted a survey by Jean Dreze, a Left-leaning social scientist, to point out that, “West Bengal has the highest rate of hunger in rural households among major Indian States.â€
The figure for all of India is 2.5 per cent, for Bihar it is 3.2 per cent and for Orissa it is 5.9 per cent. In West Bengal, however, 11.7 per cent of rural households go hungry every night.
The Congress document also says “14 of West Bengal’s 18 districts … are among the 100 poorest districts in Indiaâ€. The single “poorest district in India†is Murshidabad — the former capital the riches of which dazzled Robert Clive 250 years ago — “where 56 per cent of the people live in abject povertyâ€.
“An astonishing 1.47 per cent of India’s rural poor live in this one district alone,†the Development Report Card says of Murshidabad. It has sourced these figures from a study earlier this year by the Indian Statistical Institute, based on National Sample Survey data.
A few weeks ago, economists Bibek Debroy and Laveesh Bhandari published a critique of West Bengal called A Story of Falling Behind. It had a particularly trenchant section on income inequality and rural poverty. These issues are at the heart of the CPI(M)’s political credibility.
“West Bengal’s per capita GSDP was Rs 29,457 in 2007-08. This gives West Bengal 18th rank in the country,†write Debroy and Bhandari, “… And one shouldn’t forget that there is a considerable amount of variation across West Bengal’s 18 districts. Kolkata isn’t representative of West Bengal. West Bengal’s Human Development Report, published in 2004 and endorsed by the Left Front Government, acknowledges this too. The HDR identified six northern districts (Darjeeling, Jalpaiguri, Cooch Behar, Malda, Uttar Dinajpur, Dakshin Dinajpur), three western districts (Purulia, Bankura, Birbhum) and the Sunderbans area of the two 24 Parganas districts as particularly backward.â€
Kolkata is West Bengal’s richest district. “Uttar Dinajpur, which is West Bengal’s poorest district,†Debroy and Bhandari write, “has a per capita SDP that is only 33.6 per cent of that of Kolkata. For all its talk about equity and removal of inequalities, the West Bengal Government hasn’t been able to improve the lot of the people in the worst-off and backward districts.â€
A Story of Falling Behind cites other numbers. “In 2004-05,†it says, “from the Planning Commission’s estimates, the percentage of population below the poverty line in West Bengal was 24.7 per centâ€. Only Bihar, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Uttar Pradesh, Chhattisgarh, Jharkhand, Uttarakhand and Dadra and Nagar Haveli did worse.
Debroy and Bhandari find “42.4 per cent of West Bengal’s rural Scheduled Tribes population is below the poverty lineâ€. They cite NSS 1999-2000 data to compute that 78.7 per cent of rural Purulia’s population lives below the poverty line, as does 61.5 per cent of urban Jalpaiguri’s population.
“The (poverty) situation is especially bad in backward and deprived districts,†they conclude, “and this isn’t thrown up in aggregate State-level figures.â€
The districts Debroy and Bhandari mention as extremely poor and deprived merit closer attention. Darjeeling wants out, and is voting for Gorkhaland. In Cooch Behar and Jalpaiguri, the autochthonous Rajbangshis too are demanding a separate State — Kamtapur.
In Purulia, there are pockets of armed rebellion against feudalism and tribal oppression by CPI(M) party bosses.