Bihar to protest against cut in central funds

CM of Bihar

PATNA: Bihar has decided to lodge protest with the Centre over the 14th Finance Commission recommendations, saying the state would be a ‘loser’ due to the decision to withdraw funds for existing centrally-sponsored schemes as well as the Backward Region Grant Fund (BRGF) from the next financial year. Though Bihar would get 10% more funds in the next financial year, it would lose huge funds which were earlier given under different heads.
Talking to newsmen on Wednesday, chief minister Nitish Kumar said PM Narendra Modi wrote to CMs on Tuesday, informing them that the Centre has accepted the finance panel recommendations, including raising the share of states in central taxes by 10% to 42%. Union finance minister Arun Jaitley also called him to inform about the recommendations.
“The move will have a far-reaching impact on Bihar and its existing budgetary allocations. I will write a protest letter to the PM in a day or two in which I will explain everything in detail,” Nitish said.
“Our annual BRGF is not a result of the Centre’s mercy. It was a part of the Bihar Reorganisation Act passed by Parliament in 2000 whereby Jharkhand was carved out of Bihar. Any deduction in the BRGF would be a violation of law,” Nitish pointed out and added if the Centre insisted on its withdrawal, the state would move the Supreme Court against it.
Soon after holding his first cabinet meeting as CM for the fourth term, Nitish said there would be severe financial crisis in Bihar both under plan and non-plan heads in the event of withdrawal of existing central funds.
Nitish also reiterated that the demand for special state status to Bihar was still very much relevant contrary to the Centre’s stand that it would not be required now. He regretted the Raghuram Rajan Commission recommendations in this regard are gathering dust in the corridors of power in New Delhi.
(with Inputs from Different Sources)