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As an indicator of the state’s improved capacity to absorb money for implementing various developmental schemes, the state government will get Rs 2,550.53 crore from international financial institutions during the next fiscal.

Deputy CM and finance minister Sushil Kumar Modi said this while presenting his seventh successive budget in the state assembly on Friday. The money would be used for executing the externally aided projects, Modi added.

The amount is not a big deal in view of the money flowing to several other states from the international financial institutions. The big news is that the money flow as aid and loan from the international institutions to Bihar during the 2011-12 fiscal alone would be Rs 525 crore more than the sum obtained in the last five fiscals.

Beginning 2006-07, the state raised Rs 2,035 crore as loan and aid till the current (2010-11) financial year. The international financial institutions concerned were Asian Development Bank (ADB), World Bank (WB) and Department for International Development (DFID), UK. ADB funded the construction of state highways to the tune of Rs 814.87 crore, while World Bank aided Bihar Rural Livelihood Project (BRLP) with Rs 133.15 crore, and gave Bihar Development Policy Loan – I worth Rs 335.70 crore. Moreover, DFID provided Rs 84.81 crore for activities in the health sector.

During the 2011-12 fiscal, ADB would provide loan worth Rs 1,128.82 crore for the construction of 826.92 km of state highway. Loans are already proposed to be released under Bihar Power Sector Development Programme (Rs 66 crore), Agribusiness Infrastructure Development Project (Rs 100 crore) and Bihar Urban Development Project (Rs 50 crore).

WB loan worth Rs 450 crore is for phase II of Bihar Development Policy Loan, Rs 120 crore for BRLP, Rs 337 crore for Kosi Rehabilitation Project and Rs 83.26 crore for Bihar Panchayat Strengthening Project. On the other hand, DFID would give Rs 40 crore for Support Programme for Urban Reforms (SPUR) and Rs 114.50 crore for Sector Wide Approach to Strengthening Health (SWASTH).

Source: The Times of India

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