Tax devolution to Bihar rises 16.5% to Rs 66,368 crore

After the recommendations of the 14th Finance Commission, the tax devolution to Bihar rose by 16.5 per cent to Rs 66,368 crore, Parliament was informed today.
The government has accepted the recommendations of the 14th Finance Commission to increase the shareable pool of tax devolution from 32 per cent to 42 per cent 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 per cent 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 per cent reduction.
Accordingly, in the case of Bihar, it is reduced by about 24.6 per cent, the Minister added.