15/05/2013

 

Bihar gets highest hike in Central fund, yet state poor in utilization 

 


Patna,(BiharTimes): Bihar got around 21 per cent more Central fund for 2013-14, one of the highest for any state, even the Congress-ruled one, in the current financial year.

The Planning Commission would offer Bihar Rs 34,000 crore for 2013-14, a hike of around Rs 6,000 crore as compared to the Annual Plan for 2012-13.

It would be generous grant because the UPA government on average increased funding to the states this year between 15 and 18 per cent. Even the Congress ruled states such as Haryana and Assam did not get the increase in absolute terms as compared to what is being offered to Bihar.

Political observers attribute this to Nitish Kumar’s proximity towards the Congress and the way he had shown courtesy to visiting Union Finance Minister in Bihar a couple of days back.

On Tuesday a Planning Commission Committee met in New Delhi to clear new projects and review old proposals from Bihar under the backward regions grant fund (BRGF).

The Cabinet has already decided to allocate Rs 12,000 crore to Bihar as part of a special plan under BRGF for the 12th Plan (2012-17). The Committee considered proposals for allocation of Rs 2,000 crore to the state in the current fiscal under BRGF.

When chief minister Nitish Kumar would be in Delhi on Wednesday to discuss the state plan with Planning Commission, deputy chairperson Montek Singh Ahluwalia, the Centre would reciprocate. 

But there is a regret. While the Centre is offering huge monetary increase, Bihar’s record is utilizing funds has been poor. 

For example, of the Rs 1,500 crore allocated under BRGF special plan for 2012-13, the state was able to utilise only Rs 800 crore.

Similalry to check backwardness in Maoist hit areas, Bihar utilization of funds was just 60 per cent of Rs. 635 crore on offer. 

The panel said in its review of the scheme that there were some districts, for example, Kaimur and Munger which did not seek even a single penny during 2012-13 against the allocation of Rs. 30 crore for a district under Integrated Action Plan (IAP) to carry out developmental works in extremist hit districts. 

It was also said that Bihar’s record on implementing some big ticket projects has also been dismal even though it promises to grow economically at an average of 9.1 per cent in the 12th Plan as compared to national target of 8.2 per cent. 

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