Chief Minister Nitish Kumar, who is on a visit to Balmiki Nagar in Bagha district, is yet to react to the announcement.
However, BJP leader and Deputy Chief Minister Sushil Kumar Modi described the allocation as 'illusory.'
Modi, who is also the state's finance minister, said this was not a new package for Bihar. "The decision forms part of a special package announced by the NDA government of Atal Bihari Vajpayee after separation of Jharkhand from it and there is nothing new in this."
Accusing the Centre of discriminating against Bihar, Modi said the UPA government had also slashed Rs 1,800 crore in the annual budget for 2013-14 as compared to the last fiscal.
The special package approved by the Union Cabinet yesterday is widely seen as part of the Centre's efforts to reach out to Bihar Chief Minister Nitish Kumar amid indication of severance of ties between old NDA allies JD(U) and BJP.