In FY14, Jharkhand’s GSDP at constant prices was Rs 1.65 lakh crore. By FY19, under the BJP government, it grew to Rs 2.29 lakh crore, reflecting a 38% increase in five years, according to a report by Business Today. 

The Business Today report provides details of the economy of the state during the past ten years - both during the BJP government led by Chief Minister Raghubar Das ( 2014-19) and the JMM - Congress- RJD government led by CM Hemant Soren( 2019-2024). 

 Business Today report says, “Jharkhand, known for its natural resources, has experienced significant economic growth over the last decade. However, alongside this growth, the state, where polls are underway, has faced increasing fiscal challenges, including rising liabilities, and a growing fiscal deficit. 

Here is how the state’s economy has evolved under the BJP led NDA (2014-2019) and JMM led UPA (2019-2024) governments, focusing on key financial indicators like GSDP, per capita income, outstanding liabilities, capital expenditure, and the fiscal deficit.” 

JharkhandStateNews.com is publishing the Business Today report in public interest.Read it: Growth in GSDP and Per Capita Income Data available from the latest economic survey of Jharkhand and RBI shows that from 2014 to 2024, Jharkhand’s economy has seen consistent growth, driven by industrialisation and infrastructure development. 

GSDP Growth: In FY14, Jharkhand’s GSDP (gross state domestic product) at constant prices was Rs 1.65 lakh crore. By FY19, under the BJP government, it grew to Rs 2.29 lakh crore, reflecting a 38% increase in five years. 

As per government data for FY24, under the JMM and Congress led UPA government, Jharkhand’s GSDP further rose to Rs 2.78 lakh crore, posting a 21% growth from FY19 to FY24. Per Capita Income: Per capita income (at current prices) also grew significantly. 

In FY14, it stood at Rs 50,006, and by FY19, it increased 51% to Rs 75,421 under NDA government. By FY24, it reached Rs 98,649, indicating a 31% growth in the five years of UPA rule. Increasing Liabilities While Jharkhand’s economy grew, its total outstanding liabilities including public debt increased significantly during both periods, raising concerns about fiscal sustainability. 

 Under BJP (2014-2019): In FY14, the state’s total liabilities were Rs 37,840 crore, which was 20.07% of GSDP. By FY19, total liabilities rose to Rs 83,783 crore, making up 27.41% of GSDP. 

This increase was mainly due to borrowing for large infrastructure projects aimed at boosting industrial growth. Under UPA (2019-2024): The UPA government continued borrowing for development, and by FY23, outstanding liabilities reached Rs 1.18 lakh crore, or 30.08% of GSDP. 
This trend reflects ongoing investments in both industrial and social infrastructure. Capital Expenditure Capital expenditure (capex) is a key indicator of how much the government is investing in infrastructure. 

Jharkhand has seen a significant increase in capex over the past decade. Under BJP (2014-2019): In FY14, the state’s annual capital expenditure was Rs 6,632 crore. By FY19, it grew to Rs 15,132 crore, showing a 128% increase. Total capex under the BJP government from 2014 to 2019 was Rs 72,208 crore. 

Under UPA (2019-2024): Capital expenditure continued to rise under the UPA government. By FY23, it reached Rs 24,828 crore. Total capex under the UPA from 2019 to 2023 is expected to be Rs 69,538 crore while data for FY24 is not available. 

 Fiscal Deficit The fiscal deficit is a measure of how much the state is overspending relative to its revenue. A rising fiscal deficit can indicate financial stress. 

 Under BJP (2014-2019): The fiscal deficit in FY14 was Rs 2,222 crore. By FY19, it had increased to Rs 6,252 crore, reflecting higher borrowing to fund infrastructure projects and other development needs. 

Under UPA (2019-2024): As per the latest RBI data available till FY23, the fiscal deficit continued to rise under the UPA government, reaching Rs 11,287 crore in FY23. 

This increase is partly due to continued borrowing for developmental and social sector spendings. Growth with Challenges Jharkhand has made substantial progress in terms of economic growth, with increases in GSDP and per capita income. However, despite this economic growth, Jharkhand still has one of the lowest per capita incomes in India, and much remains to be done to increase income levels and improve the quality of life for its population. 

The state’s capital expenditure has also grown significantly, with a focus on industrial and social infrastructure. However, this growth has come with a rise in public debt and a growing fiscal deficit, which are pressing concerns for the state’s financial health. 

 From 2014 to 2024, the BJP government focused heavily on industrial growth and infrastructure, while the UPA government balanced development with social welfare programs. Both governments contributed to the state’s growth, but the rising liabilities and fiscal deficit highlight the need for more sustainable financial management. 

Going forward, Jharkhand must focus on managing its debt levels and ensuring that its investments in infrastructure yield long-term economic returns, while also improving revenue generation to reduce fiscal stress.