Satyajit Kumar is an industrialist and vice-chairman, Confederation of Indian Industry, eastern region

Revival of a stagnant economy with substantial increase in public investment and stress on infrastructural development is the theme of the state budget for 2012-13. Increased plan expenditure of Rs 28,000 crore and emphasis on agriculture with priority in the social sector, education, health and rural development are the other priority areas.

The share of the primary sector in the gross state domestic product (GSDP) has been declining. The government should stress investment in the manufacturing sector so that the decline in the primary sector contribution is accompanied by productivity gains in the secondary and tertiary sectors.

The budget emphasises the growing role of agriculture by allocating 34 per cent of the total outlay, announcing the actual implementation of the Rainbow revolution.

At each stage of development, one must be careful that the manpower required for the growing plan expenditure is addressed. The average vacancy against the sanctioned strength in various departments is around 40 per cent and there is a need to fill them for timely delivery of budget objectives.

Investment, industries and public-private-partnership find no place in the budget. Industries in Bihar remain plagued by a plethora of problems. The budget did emphasise steps to improve the working of the single-window system, but overall there is a lack of direction to improve the environment for investment and industries. The demands of industries in the pre-budget consultation such as the issue of entry tax, creation of land bank, the issue of sick industries and fuel surcharge have been totally rejected by the government.

In the Global Bihar summit, the thinkers and economists recognised by the state government had they endorsed our demands in all the sessions but the preoccupied mindset of the government has not taken care of the issues concerning investment and industries. Through this budget, the government has once again clarified that there is no priority for investors and industries.

Despite Bihar’s recent success, the political and economic debate still appears hostage to the issue that the state struggles in an environment of fluctuating growth with total failure in investment and industrialisation. Major policy and institutional reforms seemingly are taken on only in times of crisis and under duress, not as a part of a long-term strategy that anticipates and promotes change. These structures and mindsets — basically intact under successive governments comprising political parties of all economic and social philosophies — need to change rapidly for the economy to maintain a high growth and to mature.