The Telegraph
Monday , December 10 , 2012
Since 1st March, 1999
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Economy terms in CM letter to PM

Patna, Dec. 9: Chief minister Nitish Kumar, an engineering graduate, appears to be aware of the terms Prime Minister Manmohan Singh comprehends easily. The language of his letter to the PM pressing for the special status demand suggests so.

Terms like per capita income, low percentage of contribution of manufacturing in the state GDP, fiscal equalisation, per capita direct central spending and per capita development expenditure — easy to comprehend for someone having expertise in economics — were used extensively in the letter Nitish handed to Singh in New Delhi on December 6. The CM secretariat released its copy today.

To substantiate the points highlighted through the letter, Nitish referred the study conducted by National Institute of Public Finance Policy, an autonomous body which contributes to policy-making in public economics.

Highlighting the gap between the national per capita development expenditure average and that of Bihar, the letter states: “The per capita development expenditure in Bihar is Rs 3,600 compared to the national average of Rs 6,100. The absolute gap in per-capita development expenditure thus works out to a staggering Rs 27,500 crore per annum for Bihar’s population of 110 million.”

It narrates how the per capita net state domestic product of Bihar in 2011-12 was a lowly Rs 15,268 against the national average of Rs 38,005. It also talks of high percentage of unemployment (8.3 per cent).

The letter pleaded the cases of other backward states as well. Nitish, the politician, also reminded the PM about the kind of support he was getting from the people of the state on the issue.