Bihar all-party meet to write to PM on loss due to Finance Commission

PATNA: An all-party meeting convened by Chief Minister Nitish Kumar, which was boycotted by the BJP, today decided to "write" to Prime Minister Narendra Modi about the "estimated Rs 50,000 crore loss" to the state due to the 14th Finance Commission recommendations.

The meeting attended by leaders from RJD, Congress, CPI and CPI(M), decided to ask the Centre to compensate for the huge financial loss to Bihar due to the recommendations and let the special assistance being given under Backward Region Grants Fund (BRGF) continue and increase funds provided to the state.

Briefing reporters after the meeting, Kumar said "Taking everything into consideration, including the announcement in the Union budget that Bihar will be given assistance on the lines of Andhra Pradesh, we have decided to write a detailed letter to the Prime Minister about the loss to the state due to the 14th Finance Commission recommendations."

Kumar said Bihar would suffer a loss of Rs 10,000 crore during 2015-16 fiscal due to the recommendations.

"If we take the entire five year tenure of the 14th Finance Commission till 2019-20, the state will suffer an estimated Rs 50,000 crore loss. We will ask the central government to compensate for it, continue the special assistance to Bihar and increase the funds given to the state," he said.

The Chief Minister said the Commission has increased the share of states in central taxes by ten per cent to 42 per cent, which would enhance the money that would come to states like Bihar.

But at the same time, it has also done away with what the states used to get separately by the Planning Commission under plan expenditure, he said.

Kumar pointed out the Centre's share in the Centre- sponsored schemes has also been decreased.

"Money given to Bihar under BRGF after separation of Jharkhand has been stopped in the Union budget. Though we will get an increased amount through the 14th Finance Commission, yet it will be an overall decrease," he added.