Patna, Dec. 21: The World Bank has approved a Rs 800-crore loan to Bihar for investment in reforms in the fiscal policy and building infrastructure in order to boost economic growth.
Deputy chief minister Sushil Kumar Modi who also holds the finance portfolio, while confirming the loan approval, said: “It’s World Bank’s first Bihar Development Policy Loan which is designed to improve fiscal policy, public financial management and governance.”
Modi added: “The loan will help boost economic growth through reforms in agriculture, investment climate and overall infrastructure with an emphasis on roads.
“The loan would be utilised to improve educational infrastructure and social protection to the people.”
While India has emerged as one of the fastest-growing countries in the world, it faces the challenge of addressing widening economic disparities. Bihar is the poorest state in India with about 39 per cent people living below the poverty line.
The World Bank communiqué said: “Bihar is a crucial state for poverty alleviation and inclusive growth in India. The state recorded the economic growth of four per cent in recent years, which is slower than the rest of India while the state has 8.5 per cent of India’s population.”
But the communiqué also states that with arable land, water resources, favourable demography and tourism potential which remains largely non-exploited Bihar has the preconditions to accelerate development.
“By focusing on accelerating growth and improving public service delivery, this operation will assist Bihar towards achieving the development goals set out in its Eleventh Plan,” Modi believes.
Deputy chief minister Sushil Kumar Modi who also holds the finance portfolio, while confirming the loan approval, said: “It’s World Bank’s first Bihar Development Policy Loan which is designed to improve fiscal policy, public financial management and governance.”
Modi added: “The loan will help boost economic growth through reforms in agriculture, investment climate and overall infrastructure with an emphasis on roads.
“The loan would be utilised to improve educational infrastructure and social protection to the people.”
While India has emerged as one of the fastest-growing countries in the world, it faces the challenge of addressing widening economic disparities. Bihar is the poorest state in India with about 39 per cent people living below the poverty line.
The World Bank communiqué said: “Bihar is a crucial state for poverty alleviation and inclusive growth in India. The state recorded the economic growth of four per cent in recent years, which is slower than the rest of India while the state has 8.5 per cent of India’s population.”
But the communiqué also states that with arable land, water resources, favourable demography and tourism potential which remains largely non-exploited Bihar has the preconditions to accelerate development.
“By focusing on accelerating growth and improving public service delivery, this operation will assist Bihar towards achieving the development goals set out in its Eleventh Plan,” Modi believes.
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