N K Singh demands increased share of central funds for Bihar

Finance Commission Chairman N K Singh on Monday said it would "sympathetically" consider the issue of regional inequality in the eastern region and the demand for an increased share of central funds to Bihar.

A team of the 15th Finance Commission, led by Singh, is on a three-day visit to Bihar. "There is no question of looking into Bihar's case unsympathetically (on more share of Central funds)... I would assure you that the Commission would sympathetically consider regional inequality and eastern India inequality...," Singh said.

The Finance Commission chief, however, did not make any comment on the call for according special category status to Bihar, raised by Assembly Speaker Vijay Kumar Choudhary.

Singh was speaking at a national seminar on 'Addressing the Problems of Inter-State and Inter-District Disparity in India' here. Referring to statements of Choudhary and Jharkhand minister Saryu Rai in which they were critical of the functioning of the Niti Aayog, Singh said, "It would be completely inappropriate for Finance Commission to comment on Niti Aayog. Commenting on Niti Aayog is beyond its domain."

Talking about centrally sponsored schemes, Singh questioned the relevance of a high number of such programmes. "You will be surprised to know the numbers of central schemes.

However, it remains to be seen whether all these schemes are required, they are serving their purpose, and also if the money allotted is necessary.

"The Shivraj Singh Chauhan Committee had rationalised the schemes but it did not have much impact... It is a huge responsibility bestowed upon us (the Commission) to evaluate these schemes," Singh said.

Kumar, during his address at the seminar, also pitched for devolution of more funds from the Commission to "backward" states like Bihar, which has "performed well with limited resources". Referring to a recent write-up of Singh, Choudhary said, "I have read your article in which you mentioned two things.

First, those (states) who are performing well should be rewarded and the issue of backwardness be also taken care of." Choudhary raised the issue of according special category status to Bihar as it is a "geographical unfortunate" state, "whose 73 per cent of area is flood-prone due to rivers originating from neighbouring Nepal".

Bihar's share in the central divisible pool reduced to 9.6 per cent in the 14th Finance Commission from 10.9 per cent, owing to a formula adopted for horizontal distribution of resources.

(With inputs from agencies.)