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Tax devolution to Bihar rises to Rs 66,368 crore after 14th Finance Commission recommendations

New Delhi: After the recommendations of the 14th Finance Commission, the tax devolution to Bihar rose by 16.5% to Rs 66,368 crore, Parliament was informed on Monday.

The government has accepted the recommendations of the 14th Finance Commission to increase the shareable pool of tax devolution from 32% to 42% for its award period (2015-20) which gives more resources and greater freedom to use these resources to the states, Minister of State for Planning Rao Inderjit Singh told the Rajya Sabha.

“Total transfers in 2015-16 to Bihar state have increased by almost 16.5% in comparison to 2014-15,” he said.

Singh, in a written reply to the House, was responding to a query if the amount earmarked for Bihar under several centrally sponsored schemes was being reduced constantly. In 2014-15 (actual), the share of Bihar was at Rs 56,961 crore.

However, under the Central Assistance to State & Union Territories Plan (CASP), the total provision of plan transfer for all states was Rs 2.71 lakh crore in 2014-15 (revised estimate), which has been reduced to Rs 1.96 lakh crore in 2015-16 (budgetary estimate), a 27.6% reduction.

Accordingly, in the case of Bihar, it is reduced by about 24.6%, the Minister added.

PTI

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