Bihar moots Rs 34,000 cr plan size

Last Updated: Wed, Jan 23, 2013 20:12 hrs

Bihar Government on Wednesday raised its annul plan size for 2013-14 to Rs 34,000 crores, marking a 22 percent jump compared to current fiscal. The state government also demanded a special package of Rs. 20,000 crores during the 12th plan period.

The plan size was approved in a high level review meeting chaired by the Chief Minister Nitish Kumar. "We have decided to raise our annul plan size to Rs 34,000 crores ," Kumar told reporters after the meeting, "and a proposal in this regard will be sent to Planning Commission for approval. I am hopeful that the commission will approve it." For the current fiscal, Bihar has a plan size of Rs 28,000 crores. Earlier the finance department has proposed plan size of Rs 32,000 crores. However, after the insistence of the Chief Minister, the state government has to further raise it. Kumar said the limited financial resources in Bihar was hindering its economic development and keeping this in view its plan size should be higher than what has been proposed.

The CM also insisted on additional assistances during the 12th plan period. He stated, "Since the bifurcation of the state, Bihar has been getting special assistance of Rs 1,000 crores per annum. It was continued during the 11th plan period due to the continued efforts of the state government. However, the projects taken under this grant are yet to be completed, largely due to incompetence of the central agencies. Therefore, center must provide adequate funds for the completion of remaining projects."

He also demanded for special grant of Rs 20,000 crores. "We have been demanding a special grant for the next five years. We need an additional grant of Rs 4,000 crores per annum for the development of the state. The draft of 12th plan, which was approved by the NDC, indicates that we will get this special grant. However, the quantum of money is still to be decided. If New Delhi approves our demands, the plan size will also increase."

More from Sify: