Nitish thanks Centre for special financial assistance, AIIMS

Chief Minister Nitish Kumar today welcomed the announcement of special financial assistance to Bihar and setting up of an AIIMS like institution in the state in the Union Budget.

"I express thanks to Union Finance Minister Arun Jaitley for announcing special financial assistance like Andhra Pradesh after creation of Telengana from it and an AIIMS like institution for Bihar," Kumar told reporters.

"We hope the assistance is substantive enough to cover up the loss that will occur to the state due to the 14th Finance Commission report," he said.

Asked if the promise of financial assistance was an outcome of his warm meeting with Prime Minister at the wedding of RJD president Lalu Prasad's daughter two days back, Kumar said it was a chance meeting but he did convey to him the loss Bihar would accrue due to the 14th Finance Commission.

Kumar had a detailed talks with Union Finance Minister Arun Jaitley on the night of February 26 on the issue.

The Bihar CM welcomed Jaitley for continuing the special assistance by way of BRGF (Backward Region Grant Fund) to Bihar which was awarded to it since 10th plan period under an Act of Parliament after bifurcation of Jharkhand from Bihar.

Kumar, who yesterday wrote a letter to Prime Minister in the context of loss to Bihar out of 14th Finance Commission, said the state was estimated to suffer a loss of about Rs 55,000 crore on account of decrease in percentage share in devolution of total taxes to the state which he said would be less than 1.3 per cent as compared to 13th Finance Commission.

Kumar took a potshot at BJP for drum beating that by increasing central tax share to state by 10 per cent the state would gain in terms of quantum of money.

"But, the fact is that though there will be some increase in quantum of money but percentage of increase for Bihar at around 25 per cent as compared to it was getting earlier will be minimum when compared with other states for whom percentage hike will be as high as 50 per cent from past," he said.

Asked if the special financial assistance has something to do with coming Bihar election, Kumar said he did not know about others but for him it was a long pending demand in the interest of the state.

"I do not see it from political angle or coloured glass. For me it has to do with growth of Bihar," he said.

While being happy at promise of special financial assistance and AIIMS, Kumar said the Union budget by increasing service tax and dwindling central government fund for essential central schemes like Mid-day meal scheme, National Health Scheme and Sarv Siksha Abhiyan has dealt a "major blow" to the state.

"Bihar has generated maximum service tax of around 17 per cent in the current fiscal. So it will be a major loser on account of increase in service tax," Kumar said.
Kumar, who has been constantly fighting for special category status for Bihar, said Jaitley promise of special assistance has to been seen whether it addresses two main components of special category status namely devolution of fund in the ratio of 90:10 and freeing state of central taxes for installation of industries.

"We will offer a detailed reaction after seeing what shape the announcement takes place," he said.

Kumar said he would call an all party meet on the issue to press the Centre to accede to the twin demands.

The Bihar CM expressed anxiety over indication of lowering of Union government fund share in essential Central schemes like mid-day meal scheme, National Health Mission, Sarv Siksha Abhiyan which he said would put additional financial pressure on states.
"According to our estimate the Union government share in National Health Mission will come down to Rs 18,000 crore in fiscal 2015-16 as compared to Rs 21,650 crore in 2014-15," he said.

Likewise in mid-day meal scheme it would slide to Rs 332 crore in 2015-16 as compared to Rs 13,500 crore and for Sarv Sikhsha Abhiyan it would come down to Rs 2,000 crore vis-a-vis Rs 9,193 crore in 2014-15, he said.

Asked how he rated the budget presented by Union Finance Minister Arun Jaitley, Kumar said "it is inclined towards corporate houses while for common man there is only cosmetic promises."

In regard to opening of more than 1.5 crore bank accounts, he said "majority of these accounts are empty having no balance as government has yet not deposited Rs 9-10 lakh it had promised to provide to every poor out of huge quantity of black money coming back to the country".

On announcement of stringent law on black money, Kumar, who is a senior leader of JD(U) said the original promise was to bring back the ill-gotten money stashed in foreign banks in 100 days of coming into power.

On heritage centre, Kumar took the Centre to task for forgetting Bodh Gaya visited by foreign tourists in large numbers.

In reply to a question regarding PM sarcastic comment on MGNREGA in Parliament yesterday, Kumar said the "joke" was not warranted from a person holding office of Prime Minister.