Nitish Kumar seeks 50:50 share of revenue between Centre, states

Last Updated: Monday, January 6, 2014 - 21:46

Patna: The Bihar government will ask for 50:50 sharing of tax revenue between the Centre and the states from the 14th Finance Commission to make recommendation, suggesting the "income distance" should be made a formula among others for distribution of resources.

"We will urge the 14th Finance Commission to consider making a recommendation for 50:50 sharing of tax revenue between the Centre and the states with the `income distance` being one of the formulas for distribution of resources," Chief Minister Nitish Kumar told reporters after emerging from the `Janata Ke Durbar Mein Mukhyamantri` programme.

Kumar`s remarks assumes significance in the wake of the 14th Finance Commission headed by former RBI Governor Y V Reddy`s visit to Bihar to take a feedback from various quarters on the state`s aspirations for resources from Centre.

The Chief Minister said he will meet the visiting 14th Finance Commission team and apprise it about Bihar`s concerns and aspirations about financial allocation to tide over backwardness even as memorandums will be submitted by the state government, political parties and other stakeholders.
Regretting that the past two Finance Commissions had failed to do justice to Bihar, he exuded confidence that the present panel will cater to Bihar`s aspirations and recommend liberal financial devolution to the state in view of its socio-economic backwardness.

Kumar said he had earlier written a letter to the Centre seeking additional financial devolution to Bihar in view of its backwardness.

He said he had also objected to the central government coming out with one scheme after another and forcing the states to commit to it by making allocation for implementation of those schemes, and said the Centre should instead take full responsibility for schemes devised by it.

Kumar also spoke on the special status issue and referring to the RJD, said the Centre intentionally shelved the proposal to consider accommodation of Bihar`s aspiration on the basis of the Raghuram Rajan panel report apparently at the behest of its longstanding ally.

He said he was hopeful till November last year that something positive will come out on the special status demand, but the proposed meeting of a committee headed by the union finance secretary to vet the Raghuram Rajan panel report was postponed indefinitely, giving the state indications that its demand has been shelved by the Centre.

The Chief Minister said he was deterred by the UPA government`s attitude and will continue to raise the special status demand and the issue will figure prominently as a major agenda of his party during the coming general elections.

Bihar and its people will not sit idle till our rightful demand of special category status is met, he added.


First Published: Monday, January 6, 2014 - 21:46

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