India - Jharkhand : Public Financial Management and Accountability Study

Abstract

Jharkhand, India's youngest and
 28th state came into existence in November 2000 pursuant to
 the reorganization of the erstwhile State of Bihar by the
 Bihar State Reorganization Act, 2000. More than 77 percent
 of the population of the state resides in rural areas and
 depends on agriculture for sustenance. Jharkhand is one of
 the richest states in the country in terms of mineral
 resources. Close to half of the gross domestic product
 (GSDP) of the state emanates from industry which includes
 mining, quarrying and registered manufacturing. But the
 high degree of industrialization has not resulted in a high
 level of income for the state. While the structure of the
 output indicates a high level of industrialization, the
 structure of employment reveals the predominance of
 agriculture. The purpose of this study is to make an
 objective assessment of the Public Financial Management and
 Accountability (PFMA) system of the state, identify its
 strengths and weaknesses and areas that may be in need of
 reforms and related capacity building. This study is a
 prerequisite to determining the precise nature and extent of
 any capacity building initiatives in Jharkhand. The study
 provides the Government a diagnostic tool for establishing
 priorities and to develop a baseline for monitoring future
 PFM performance of the state.