Bihar govt to come out with its first-ever economic survey

'Outcome budget' to fix targets for the next fiscal.

Ahead of the state Assembly's forthcoming budget session, Bihar government is considering introduction of major changes in the budget to streamline its fiscal management.

Besides, the JD(U)-BJP coalition government in the state, which would be presenting its second budget in the last week of this month, plans to come out with a pre-budget economic survey to present an "analytical and comparative" picture of the state's increasing economic activities over the current fiscal.

The survey, happening for the first time in the state, is being seen as an effort by the government to project the difference in Bihar's economic activities during the present government's 15 months in power and the previous regime's 15 years in power.

"The pre-budget economic survey will encompass all major areas of the state's economy," said Deputy Chief Minister Sushil Kumar Modi who also holds the finance portfolio.

Modi also hinted that the state government was considering an insurance cover for traders and transporters paying sales tax regularly. He, however, declined to elaborate on it at the moment. The budget session is likely to commence from February 23.

The budget would also introduce some changes to make the process of paying commercial taxes in the state simpler, Modi said.

The government is also planning to introduce a 'One Time Settlement (OTS) scheme' to recover about Rs 700 crore locked in the commercial and transport departments. According to Modi, over 18,000 certificate cases relating to sales tax are pending in the state.

The government is also considering a hike in the court fee and taxes on commercial vehicles entering Bihar from outside, he said, adding, "The hike will not affect the common man." Modi said the hike was one of the recommendations of the Shetty Commission.

The government will also present a "performance budget" during the coming session to highlight its achievements during the current fiscal, and an "outcome budget" that would fix targets for the next fiscal, Modi said.

A finance department bureaucrat engaged in drafting the state budget said, "The pre-budget economic survey will provide us and potential investors in the state much-needed feedback on the state's economic situation. This analytical and comparative report will work as a strong launch pad for the government for the next fiscal."