Bihar is losing tax revenue as the Centre is not following the recommendations of the 14th Finance Commission, state Finance Minister Abdul Bari Siddiqui said today.
"The Centre has been slashing Bihar's share in central pool of taxes... Centre has not adhered to the recommendations of 14th Finance Commission due to which Bihar is expected to get Rs 6,453.37 crore less than what was recommended by the commission for 2015-16.
"The state is expected to lose Rs 9,740.11 crore in 2016-17," Siddiqui said during a debate on the state budget in the assembly.
Against the 14th Finance Commission's recommendations of Rs 56,300.07 crore for Bihar in 2015-16, the central government first allocated Rs 50,747.58 crore, before finally making a provision of Rs 49,846.70 crore in the Union Budget, he said.
The commission recommended Rs 64,973.82 crore for the state in 2016-17, but the Centre has approved Rs 55,233.71 crore, Siddiqui said.
Stating that he would request the Centre for allotting divisional pool of taxes to the state as per the recommendations of the commission, the minister said 'cess' imposed by the Centre should be brought under the ambit of divisional pool so that states can also benefit.
Siddiqui said Bihar was also losing heavily due to Centre's decision to change the 'sharing pattern' of Centrally Sponsored Schemes (CSS).
The Centre used to give 100 per cent funds under 'Pradhan Mantri Grameen Sadak Yojana', but the sharing pattern has been changed to 60:40, he said. Indira Awas Yojana's sharing pattern has also been changed from 75:25 to 60:40.
"The change in sharing pattern by the Centre for CSS alone is expected to have a financial burden of Rs 4,508.63 crore on state's exchequer in 2015-16," the senior RJD leader said.
The minister appealed to the Centre to accord 'Special Category Status' to backward states like Bihar.
Siddiqui said out of Rs 20,934.60 crore earmarked for CSS in 2015-16, the state could spend Rs 12,367.24 crore against a sum of Rs 15,046.65 crore which was actually sanctioned by the Centre.
To this, senior BJP leader Nand Kishore Yadav, who initiated the debate on budget yesterday, said, "This shows that you could not spend the funds given by the Centre."
Responding to Yadav's question on the time-limit for implementing Nitish Kumar's 'Saat Nischay' (seven resolves), Siddiqui said, "Our budget 2016-17 is focused on 'Saat Nischay' which will be implemented in the next five years and not 25 years."
He added that some of the resolves have been fulfilled, for example, giving 35 per cent quota to women in government jobs.
Wi-fi facility would be provided at all government colleges and universities in 2016-17, and electricity connection would be given to every household in the next two years, he said.
