Meeting Of All Political / Academic / Professional Organisations Of Bihar For Preparation Of Joint Memorandum To The 14th Finance Commission
From 16-11-2013 To 16-11-2013
parties demand Rs 4 lakh crore for Bihar
A meeting of all political parties and academic/professional organisations in
Bihar was organized at ADRI on Saturday.
The meeting had been
convened to discuss issues pertaining to the ‘Joint Memorandum' that has to be
submitted to the 14th Finance Commission of India by ADRI. The Joint
Memoranda for the 12th and 13th Finance Commissions too had
been prepared by the experts at ADRI.
suggestions of his party, Dr Sushil
Kumar Modi of the BJP said the income from Non-Tax Receipts (like the money
accruing from the sale of spectrums etc.) and cess/surcharges be also brought
into the devolution net by Centre, upon the recommendations of the 14th
Finance Commission. He said there should also be a provision for a separate 4
per cent share of the Central taxes to be dedicated towards the cause of urban
and local bodies and PRIs. He stressed on the need to have a moratorium on the
amount of loan interest that is an increasing burden on the state. Further, to
offload the burden on the state after the 7th Pay Commission
recommendations get implemented in the next 2-3 years, Bihar needs to shape its
demand from now only. Also, malnutrition and rapid urbanization need a special
attention, said the previous Finance Minister of Bihar. Legislation-based
Central schemes increase another set of burden on states. Centre must share
this load on states, substantially. Modi said in total Rs 4 lakh crore will be
required to be allocated to Bihar by the 14th FC.
Representing his party JD (U) at the meeting, Shri Vijay
Chaudhary, Water Resources Minister (Government of Bihar), said the
objectives must be clearly set out while submitting the memorandum to the 14th
FC. Underlining the fact that flood is a perennial problem for this state,
Chaudhary said there should be a special focus on undoing the damages caused by
floods in Bihar. Also, he emphasized that the practice of adopting 1971 as the base
year must be done away with now as the 2011 markers are ready. Sushil Modi of
the BJP was also of the same view. Chaudhary also emphasized the need for a
better volume of allocation for the Power Sector in Bihar.
Anil Sharma, Ex-President, BPCC, representing his party Indian National Congress said the Terms of
Reference must be revised by the 14th FC if the state finds any
deficiency in that.
UN Mishra of the CPI suggested that the demands which the
state is going to put before the 14th FC should be project-oriented,
and not fund-oriented.
Ashok Kumar Sinha from the RJD suggested that the
memorandum include the demand that flood be declared as a ‘permanent national
All political parties
agreed on the suggestions deliberated during the meeting. Shri Sarvoday Sharma from CPI (M), Dr Abhayanand Suman from Rashtriya
Lok Samata Party (RLSP), and Manikant Pathak of SUCI (C) were amongst those present
at the meeting.
representatives included Satyajeet Singh, Chairman, PHDCCI, Arun Agrawal,
President, BIA, PK Agrawal, President, Bihar Chamber of Commerce, Kamal Shahi,
At the start of the meeting, giving the details on what the Joint
Memorandum would include, Professor PP Ghosh of ADRI said the memorandum, it is
proposed, will contain broadly five chapters.
The first chapter will mention the background, detailing the overall regional inequalities
prevailing in the country and the arrangements of fund transfers through the
Planning Commissions over the years. Other sub-sections in the
Chapter would deal with the provision of transfer of Taxes and Duties as well
as grants-in-aid through the Finance Commission.
In Chapter II, the Terms of Reference (ToR) along with the Issues for
the 14th Finance Commission in the perspective of backwardness of
states will be dealt with brief comments on the ToR.
However, Chapter III would describe the present status of Bihar, including its
backwardness and disadvantages.
While points for consideration of the 14th Finance Commission are proposed to be
presented in Chapter IV, Chapter V may deal with the suggested
criteria/weights to the
advantage of Bihar.
The 14th Finance Commission has been constituted
under the chairmanship of former
RBI governor Dr YV
Reddy. The Commission that will cover a five-year
period from April 2015 to March 2020 has to make its report available to the
Government of India by 31st October, 2014.
A Finance Commission is constituted every five years in accordance
with the constitutional mandate with a view to recommend the distribution of
the divisible pool of the financial resources of the Government of India
between the Union and the States, as also the horizontal allocations across states.
In determining the horizontal devolution, the successive Finance
Commissions broadly attempted to address the issues of fiscal needs, fiscal
capacity, costs of providing similar level of public goods and services and
rewarding efficiency in fiscal efforts and outcomes.
Despite all these endeavours, the regional
disparity in India is widening, with Bihar remaining the poorest among all.