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LATEST NEWS UPDATES | CM counts Rs 15000cr loss

CM counts Rs 15000cr loss

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published Published on Mar 3, 2015   modified Modified on Mar 3, 2015
-The Telegraph

Patna: Chief minister Nitish Kumar today charged the Centre with abolishing the Backward Regions Grant Fund (BRGF) in "clear violation" of the Act mandated by Parliament and said he was thinking of moving court against the decision.

"I met Union finance minister Arun Jaitley on February 26 and specifically apprised him that the BRGF abolition was in contravention of the Bihar Reorganisation Act, 2000. The special assistance under BRGF had begun under NDA rule. In the 10th five-year plan (2002-07) the state got Rs 4,000 crore, which rose to Rs 12,000 crore by the 12th five-year plan (2012-17)," Nitish said. "We will move court if the injustice is not undone."

The abolition of BRGF would heavily impact infrastructure projects, he said.

Talking to reporters on the sidelines of his first weekly janata durbar at 1 Aney Marg in over a year, Nitish said the 14th Finance Commission's recommendations were grossly "negative" for Bihar.

"As per the 14th Finance Commission, the state will get only 9.6 per cent of the share from central taxes against 10.9 per cent earlier. The drop in the state's share will cause a loss of about Rs 15,000 crore in 2015-16 and Rs 50,000 crore-Rs 60,000 crore in the next five years," he said.

Quantitatively explaining the loss, Nitish said: "Following the devolution of funds principle, the state will get Rs 50,747 crore in 2015-16 against Rs 36,963 crore during 2014-15. It will roughly account for a 37.3 per cent rise in Bihar's share. On the other hand, the state will get only Rs 18,000 crore in 2015-16 under the National Health Mission against Rs 21,650 crore in 2014-15. Similarly, Bihar will get only Rs 3,225 crore in 2015-16 against Rs 13,500 crore in 2014-15 under the mid-day meal scheme and Rs 2,000 crore in 2015-16 against Rs 9,193 crore in 2014-15 under the Sarva Siksha Abhiyan."

Nitish pointed out that the recommendations had put Bihar in the "most disadvantageous" position as it will get only 37.3 per cent of the share from the central tax pool against 41.1 per cent for Uttar Pradesh, 46 per cent for Rajasthan, 56.4 per cent for Bengal, 57.7 per cent for Gujarat 60.3 per cent for Haryana and 90.3 per cent for Chhattisgarh.

Nitish said he would call an all-party meeting to request the Centre to fulfil its promise on special assistance.


The Telegraph, 2 March, 2015, http://www.telegraphindia.com/1150303/jsp/frontpage/story_6606.jsp#.VPUhpeFr9U8


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