However, Bihar is likely to get additional funds in the ongoing plan compared to the 11th plan
Bihar may be in the forefront of raising its voice, but the Centre's largesse will not only be limited to the state, but also to Bundelkhand region of Uttar Pradesh and Madhya Pradesh as well as the KBK districts of Odisha when it allocates money under the Backward Region Grant Fund (BRGF) for the 12th five year plan (2012-13 to 2016-17).
However, Bihar is likely to get additional funds in the ongoing plan compared to the 11th plan, while Bundelkhand may receive just an extension of the funds which could not be utilised in the 11th plan. Kalahandi, Balangir, Koraput (KBK) districts of Odisha may get just the same funds in the 12th plan as was given in the 11the plan.
According to senior officials, a cabinet note is under consideration which would provide around Rs 4,500 crore as a special plan under BRGF for Bundelkhand in the 12th plan and an annual allocation of Rs 250 crore for the three KBK districts of Odisha.
In 2009-10, the government had allocated Rs 7,266 crore for three years to Bundelkhand. only Rs 2,766 crore has been utilised in these three years by when the 11th five year plan was over. Now, the government will extend the remaining funds-- Rs 4,500-- for the 12th plan.
For KBK districts, the government had allocated Rs 250 crore per year in the 11th plan. More or less the same amount may be given to these areas in the 12th five-year plan as well.
In total, officials said funds anywhere between Rs 17,750 crore to Rs 18,000 crore will be provided under the special plan of BRGF, of which around Rs 12,000 crore would be for Bihar, around Rs 4,500 crore for Bundelkhand and about Rs 1,250 for KBK districts of Odisha spread over a period of five years (2012-13 to 2016-17).
For Bihar, under the special plan of BRGF a sum of around Rs 8,800 crore was allocated in the 11th five-year plan (2007-08 to 2011-12).
Bihar chief minister Nitish Kumar has long been demanding a ‘Special Category Status’ for his state which would enable him to get a host of benefit including extended tax breaks. It would also mean alteration of the current formula of 30 per cent loan and 70 per cent grant to 10 per cent loan and 90 per cent grant for centrally-sponsored schemes and external aid, besides fiscal concessions.
A special category status is accorded to a state on the basis of five conditions — hilly and difficult terrain, low population density and sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructure backwardness and non-viable state finances.
On these grounds, an inter-ministerial group, set up after the intervention of Prime Minister Manmohan Singh, had earlier rejected the Bihar government’s plea to grant it the status of a special category state. So far, 11 states have been accorded this status: Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand who are remote or hilly areas.
However, some experts feel that for special category status, a proposal has to be approved by the National Development Council (NDC), a body comprising states and the Centre, unanimously which is a long-drawn process. At present, 11 states are catergorised as ‘Special Category States’.
The Budget for 2013-14 announced enhanced allocation under BRGF to Rs 11,500 crore for the previous financial year (BE) against Rs 10,524 crore in 2012-13 (RE).
However, compared to BE of the previous financial year, allocation is less for the current financial year. As much as Rs 12,040 crore was initially allocated for 2012-13 in the Budget Estimates.
Finance minister P Chidambaram had said in his speech for the Budget 2013-14 that the present criteria for determining backwardness under BRGF are based on terrain, density of population and length of international borders.
"It may be more relevant to use a measure like the distance of the State from the national average under criteria such as per capita income, literacy and other human development indicators," he said. He proposed to evolve a new criterion and reflect them in future planning and devolution of funds.
No comments:
Post a Comment