Lok Sabha Question No. 161 (STARRED), answered on 2022-03-14
Subject: Central Assistance to Bihar
Ministry: FINANCE
Asked by: Rajiv Ranjan (Lalan) Singh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA STARRED QUESTION NO. 161

Answered on Monday the 14 th March, 2022/ Phalguna 23, 1943 (SAKA)

## Central Assistance to Bihar

## *161.  SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH:

Will the Minister of FINANCE be pleased to state:

- (a) the  details  of  the  additional  benefits  and  Central  Assistance  being  given  to Bihar, based on the recommendations of the 15 th Finance Commission; and
- (b) the details of the recommendations made by the 15 th Finance Commission in this regard?

## ANSWER

## MINISTER OF FINANCE

## (SMT. NIRMALA SITHARAMAN)

- (a) to (b): A statement is laid on the table of the House.

STATEMENT REFERRED IN PART (A) TO (B) OF THE REPLY TO THE LOK SABHA STARRED QUESTION NO. *161 BY SHRI  RAJIV RANJAN SINGH ALIAS LALAN SINGH REGARDING 'CENTRAL ASSISTANCE TO BIHAR' FOR ANSWER ON MONDAY,  MARCH  14, 2022.

- (a) to  (b)  15 th Finance  Commission  (XV-FC)  have  recommended  transfer  of various types of funds to States including Bihar depending upon their eligibility determined by the Commission. Funds recommended for transfer to the State of Bihar by the 15 th Finance Commission (XV-FC) are given below;

| S. No.   | Component                                                       | Amount recommended for the State of Bihar (Rs. in crore)                                                                                                                                                                                                           | Amount recommended for the State of Bihar (Rs. in crore)                                | Amount recommended for the State of Bihar (Rs. in crore)                                |
|----------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
| S. No.   | Component                                                       | For the Year 2020-21                                                                                                                                                                                                                                               | For the Year 2021-22                                                                    | For entire Award period 2021-22 to 2025-26                                              |
| 1.       | Union share of the State Disaster Risk Management Fund( SDRMF ) | 1416.00                                                                                                                                                                                                                                                            | 1416.00                                                                                 | 7824.00                                                                                 |
| 2.       | Urban Local Body Grants(ULB)                                    | 2416.00                                                                                                                                                                                                                                                            | 1827.00                                                                                 | 9999.00                                                                                 |
| 3.       | Rural Local Body Grants(RLB)                                    | 5018.00                                                                                                                                                                                                                                                            | 3709.00                                                                                 | 19561.00                                                                                |
| 4.       | Health Sector Grants to Local Bodies (All components)           | N.A.*                                                                                                                                                                                                                                                              | 1133.10                                                                                 | 6017.00                                                                                 |
|          | (i) For Rural Areas                                             | N.A.*                                                                                                                                                                                                                                                              | 904.47                                                                                  | 4802.93                                                                                 |
|          | (ii) For Urban Areas                                            | N.A.*                                                                                                                                                                                                                                                              | 228.63                                                                                  | 1214.07                                                                                 |
| 5.       | National Disaster Risk Management Fund( NDRMF )                 | No State-wise allocation. Fund provided to States if calamity of severe nature strikes.                                                                                                                                                                            | No State-wise allocation. Fund provided to States if calamity of severe nature strikes. | No State-wise allocation. Fund provided to States if calamity of severe nature strikes. |
| 6.       | Inter-Se share of net proceeds of Central Taxes& Duties         | 10.061%                                                                                                                                                                                                                                                            | 10.058%                                                                                 | 10.058%                                                                                 |
| 7.       | Borrowings                                                      | (i) Normal net borrowing ceiling for States including Bihar was fixed at 4% of GSDP for the year 2021-22, 3.5% for the year 2022-23 and 3% each for the three year period from 2023-24 to 2025-26 (ii) Additional borrowing of upto 0.50% of GSDP based on certain | performance criteria                                                                    | in Power Sector.                                                                        |

Based  on  the  recommendations  of  the  15 th Finance  Commission  (XV-FC), Rs.59,861.41 crore from net proceeds of Central Taxes & Duties during 2020-21 and Rs. 81,789.32 crore in 2021-22 has been released to Bihar.  In addition, the following 15 th Finance Commission recommended Grants have also been released to the State during 2020-21 and 2021-22 [upto 10-03-2022];

| (Rs. in crore)   | (Rs. in crore)   | (Rs. in crore)   | (Rs. in crore)   | (Rs. in crore)      | (Rs. in crore)   | (Rs. in crore)   |
|------------------|------------------|------------------|------------------|---------------------|------------------|------------------|
| Year             | SDRMF            | ULB Grant        | RLB Grant        | Health Sector Grant | NDRMF            | Total            |
| 2020-21          | 1416.00          | 2416.00          | 5018.00          | N.A.                | 1255.27          | 10105.27         |
| 2021-22          | 1132.80          | 759.00           | 3709.00          | 1116.31             | 0.00             | 6717.11          |
| Total            | 2548.80          | 3175.00          | 8727.00          | 1116.31             | 1255.27          | 16822.38         |

Besides grants, borrowings of Rs. 27,285 crore in 2020-21 and Rs.28,489 crore in 2021-22 was also allowed to Bihar.

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