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After bifurcation of Bihar in 1912, the state had received only 5.5 lac rupees as its share and the government had started functioning with a paltry sum of 1.25 crore only. The revenue growth rate of Bihar was lowest (11.20%) among all the nine states during the years 1911-1921. The growth rate of other states was 30.48 percent. Even at that time, per capita expenditure on public health was minimum among all the states. The government expenditure on health was Rs. 1212 per thousand of its population where as in Bengal it was Rs. 1740, United Provinces - Rs. 1844, Assam - Rs.2419, Bombay- Rs.5579, Punjab-3744. The Government of Bihar had submitted a representation before Statutory commission in 1928 quoting Mestan committee that Bihar was the poorest state and without developing Bihar, we could not think of integrated development of the country as a whole. At that time it was discussed and decided that there should have been a judicious distribution of resources between the centre and the states. Even at the time of division of Bihar and Orissa, Nirsu Narain Sinha had raised the issue of imposing tax on iron and coal by the state government but it was ignored by the rulers of the country at that time.
By the passage of time, the situation in Bihar went on deteriorating. Even after its bifurcation from Bengal, there was not a single University in Bihar nor any medical college. Now even in 2004, the state is devoid of any central university or any super speciality hospital. The only worth mentioning institute established was Imperial Agriculture University in Pusa. Noted agriculture scientist Borolung worked here for some time. In 1914, addressing a seminar in Patna, famous Buddhist Monk Dharmpal had asked people to resort to technical education for economic development. He thought that the ruling class always believed in keeping their people ignorant and poor. Just after independence, particularly during fifties, the state developed with a good pace. Many big industries and institution were established in different parts of the state. The famous Applebee report considered Bihar as one the best-administered state in the country. Unfortunately the land reforms were not taken up with utmost sincerity and the task remained unfulfilled till today despite different governments came and went. The issue of land reforms never appealed successive governments as it safeguarded its own interest of vote bank. Previously, the zamindar class was close to Congress politics; later on neo kulak were flag bearers of social justice government. Even during 60’s, Bihar, with lowest SDP, was getting minimum central assistance. In almost all five-year plans, the central assistance to Bihar was less than average of all states. With the increasing population and decreasing revenue base, the state became bankrupt. Large number of corporations and public undertakings came into existence only to serve petty political ends. The situation further deteriorated when a large number of colleges and schools were taken over by the government to oblige their political constituencies. Ironically, the common people of the state are politically very conscious and hosts of people are doing new experiment in their own limited capacity. The recent sacrifice of Sarita - Mahesh in Sabdo village or Manju of Jehanabad shows that a lot of fire brand activists are active in their mission and definitely it can be said with full confidence that Bihar is certainly not dead. The recent ruling class is equally responsible for the decimal situation. The current regime has very successfully implemented the agenda of social justice but miserably failed on development front. How can enduring social justice be ensured without economic upliftment? Who can be made responsible for poor roads, unhygenic hospitals and no electricity. If a government fails on these fronts, certainly there is an urgent need for toning existing system of governance. Surprisingly the state excise department collects only Rs.250 crore where as in Andhra Pradsh it is 3261. Even M P collects 896 crore. A large amount of money that can be collected as tax drains out as unaccounted black money.
Despite all good efforts, Bihari entrepreneurs and farmers lack access to banking credit facilities for investment. The credit deposit ratio is abysmally as low as 25 percent where as national average is 58 percent. All sorts of enterprises are self-financed. So the challenge before the people of Bihar can be well understood by every one. The time has come when all the political parties should take Bihar as their challenge and without changing the living condition of the people of Bihar, one cannot think of ‘Shining India.’
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