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This is an archive article published on February 28, 2015

Nitish Kumar asks Modi for ‘special arrangement’

He also reiterated the state’s strong case for special category status 'so that its share in central taxes should increase'.

Nitish Kumar, Narendra Modi, Centre Bihar help, Bihar financial packages, Finance Commission, Bihar news, Bihar, india news, nation news Bihar CM Nitish Kumar

In his first official correspondence to Prime Minister Narendra Modi, Bihar Chief Minister Nitish Kumar expressed dissatisfaction with the 14th Finance Commission “reducing” central help for Bihar and demanded a “special arrangement” for the state to help it “contribute to nation’s progress”.

He also reiterated the state’s strong case for special category status “so that its share in central taxes should increase” and “investors can get rebate in direct and indirect taxes”. Kumar, whose political rivalry with Modi is well known, had given hints of thaw in relationship soon after taking over as Bihar CM again on February 22.

In a three-page letter addressed to “Pradhan Mantriji” Thursday, the Bihar CM wrote: “I received your letter regarding 14th Finance Commission recommendations. On the first look, I welcome it. But perusal shows the increase is only compositional and the state did not stand to gain eventually.” Kumar elaborated how Bihar’s share in central allocation went down from 11.59 per cent in 11th Finance Commission to 11.03 per cent in 12th Finance Commission to 10.92 per cent in 13th Finance Commission.

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Nitish added 14th Finance Commission adopted area and green cover as criteria ignoring area density of population. “Bihar should get funds on basis of area density. The fact of it being a land-locked state should not be ignored as well”, said Nitish referring to Modi’s “sabka sath, sabka vikas” policy and how Bihar had also hoped to contribute to the country’s progress with adequate central assistance.

The Bihar CM, who is likely to meet PM soon, said the state achieved high growth rate in last few years despite its constraints. Nitish said even Finance Commission member Abhijeet Sen did not agree with other members’ take on eastern states. “You have talked about eastern states benefiting from mines royalty, but Bihar has little mines left since bifurcation of Jharkhand. We are also apprehensive of BRGF getting discontinued from next year as the fund was heavily slashed in current year,” Kumar said.

Santosh Singh is a Senior Assistant Editor with The Indian Express since June 2008. Expertise He covers Bihar with main focus on politics, society and governance. Investigative and explanatory stories are also his forte. Singh has 25 years of experience in print journalism covering Bihar, Delhi, Madhya Pradesh and Karnataka.   ... Read More

 

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