Bihar has worst Per Capita Credit disbursed by Indian banks

By Syed Zahid Ahmad for Maeeshat

Considering higher attraction for voters in election manifestos of parties in state elections, it is required that the Election Commission of India should think about framing regulation to prevent political parties offering bribes through election Manifestos. Since political parties are not allowed to distribute materialistic offers to voters before polling, these parties feel privileged to extend attractive offers for public through election manifestos. It is a kind of futuristic bribes offered to voters without any cost to political parties.

Bihar has worst Per Capita Credit disbursed by Indian banks

If election commission is not serious to take any action over such manifestos where parties announce to distribute laptops, televisions, bicycles or two wheelers etc., its high time the voters should realize that if political parties promise to distribute such attractive materials after winning election; its cost would be ultimately paid by citizens of that state only, and not by the parties.

Voters must realize that the political parties who promise to distribute cycles, bikes, laptops, tablets and televisions after winning election are making fool of the public on the name of eradicating backwardness and poverty. These parties are really not serious about state development; rather going to exploit the citizens through awkward fiscal policies after winning elections. Voters must understand the economics behind such offers. It is needed to understand how the party if wins election fulfill such promises. Will the party pay from its own fund for fulfilling such promises? Obviously No!

Fulfilling such highly attractive promises will ultimately cost the public living in particular state. To fulfill such promise the state Government need fund for purchase of materials. To raise required funds, the Government will obviously increase tax revenues. Increasing tax revenues by state Government will ultimately add inflation and tax burden on public including entrepreneurs and consumers. The ugly tax structure would ultimately go to increase inflation and adverse conditions to attract fresh and abroad investors in the state. The ugly fiscal policy will push the state downward instead of increasing potential for state economic growth.

Now it is upon the public who consider the manifesto attractive to cast votes how they consider the economics of attractive promises in manifestos. If the voters react sensibly to such attractive promises, the parties would obviously become serious in planning for state development.

The statistics available at website of the Reserve bank of India reflects financial deprivation of Bihar as one of the reason for Bihar’s under development. Bihar being third top populated state in India after Utter Pradesh and Maharashtra deserves fair attention for inclusive growth of India. Ignoring Bihar would always led India fail in achieving the target of better growth rate.  Considerably Bihar shares as much as 9% of Indian Population, thus deserves better treatment by sincere planners for the nation’s development.

Considering Bihar election, political parties should raise issue of the lowest per capita credit availed by Bihar. It may be noted that Bihar is getting merely Rs. 6,017 as per capita credit disbursed by Indian banks compared to Rs. 5,48,951 for people of Chandigarh and Rs. 5,04,031 for people living in Delhi.  Credit Deposit Ratio for Bihar is merely 33% against national average of 79%.

It might be questioned why Credit Deposit ratio for states like Tamil Nadu, Andhra Pradesh, Chandigarh and Delhi is over 100%? People of Tamil Nadu received 122% credit of Deposits made in Banks whereas people of Bihar get just 33% of their Deposits as credits extended by Indian banks. Why political parties not find any reason for this deficit in finance as reason of Bihar’s backwardness compared to other states like Chadigarh, Delhi, Andhra Pradesh and Maharashtra.

Political parties should sincerely raise the point why the per capita credit availed by Bihar is just Rs. 6,017 compared to national average per capita credit of Rs. 51,910 extended by Indian scheduled commercial banks? Whoever be the economists behind these political parties, can anyone deny that without ensuring adequate supply of finance, we cannot raise Bihar’s growth potentials?

If any party is really serious to help poor people of Bihar, they should really think about promoting micro and smaller enterprises in Bihar. There is desired that political parties may announce launching of Micro Equity Fund for micro and smaller enterprises allowing them feel equality in financial sector compared to corporate who avail equity from stock markets. Such micro equity funds may allow micro and smaller enterprises boost their entrepreneurship; ultimately boosting manufacturing activities in the state.

The people of Bihar should ask the political parties to ensure that they avail what people of Bihar really deserve and the new Government should just keep on facilitating the people of Bihar develop their state.

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