Lok Sabha Question No. 3056 (UNSTARRED), answered on 2023-03-20
Subject: Assistance to the State of Bihar
Ministry: FINANCE
Asked by: Janardan Singh Sigriwal

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 3056

TO BE ANSWERED ON MONDAY, MARCH 20, 2023/PHALGUNA 29, 1944 (SAKA)

## ASSISTANCE TO THE STATE OF BIHAR

## 3056. SHRI JANARDAN SINGH SIGRIWAL

Will the Minister of FINANCE be pleased to state:-

- (a) the financial assistance provided by the Government to the State of Bihar during each of the last five years, Scheme-wise;
- (b) whether the State Government of Bihar has spent this amount on the schemes for which the assistance was meant;
- (c) if so, the details thereof; and
- (d) if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a):  The  Union  Government  provides  resources  to  States  including  the  State  of  Bihar  through Ministries/Departments  under  the  heads  Tax  Devolution,  Finance  Commission  Transfers,  Centrally Sponsored  Schemes  (CSS),  Central  Sector  Schemes  (CS),  Additional  Central  Assistance  (ACA)  for Externally  Aided  Projects  (EAPs),  Special  Assistance,  Special  Assistance  to  States  for  Capital Expenditure/Investment etc. Summarized details of transfer of resources to the State of Bihar during the last five years 2017-18 to 2021-22 are provided in Table-1.

Table-1

(Rs. in crore)

|   Sl. No. | Items                        | 2017-18   | 2018-19   | 2019-20   | 2020-21   | 2021-22   |
|-----------|------------------------------|-----------|-----------|-----------|-----------|-----------|
|         1 | Tax Devolution               | 65,083    | 73,603    | 63,406    | 59,861    | 91,353    |
|         2 | Grants-in-Aid                | 25,720    | 24,652    | 26,969    | 31,764    | 28,606    |
|         2 | Of which                     |           |           |           |           |           |
|         2 | Finance Commission Transfers | 5,889     | 4,775     | 7,897     | 10,105    | 8,117     |

Source: 2017-18 to 2020-21: State Finances Audit Report for the year ended 31 March, 2021

2021-22: State Budget 2023-24

Department  of  Expenditure,  Ministry of  Finance  releases  Grants-in-Aid  mandated  by  Finance Commission, 'Special Assistance', EAPs (Grants-in-Aid/ Loan) and also Special Assistance to States for  Capital  Expenditure/Investment  (Loan)  under  Demands  for  Grant  'Transfers  to  States'  to  States including the State of Bihar. Scheme-wise & year-wise details of release of Grants-in Aid and Loan to the State of Bihar are provided in Table-2 .

Table-2

(Rs. in crore)

| Sl. No.                      | Items                                                                                        | 2017-18                      | 2018-19                      | 2019-20                      | 2020-21                      | 2021-22                      |
|------------------------------|----------------------------------------------------------------------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|
| (A) Grants-in Aid            | (A) Grants-in Aid                                                                            | (A) Grants-in Aid            | (A) Grants-in Aid            | (A) Grants-in Aid            | (A) Grants-in Aid            | (A) Grants-in Aid            |
| Finance Commission Transfers | Finance Commission Transfers                                                                 | Finance Commission Transfers | Finance Commission Transfers | Finance Commission Transfers | Finance Commission Transfers | Finance Commission Transfers |
| 1                            | Central Share of State Disaster Response Fund                                                | 489.56                       | 101.82                       | 631.13                       | 1,416.00                     | 1,132.80                     |
| 2                            | Central Share of State Disaster Mitigation Fund                                              | 0.00                         | 0.00                         | 0.00                         | 0.00                         | 283.20                       |
| 3                            | Urban Local Bodies Grant                                                                     | 405.11                       | 473.68                       | 637.79                       | 2,416.00                     | 836.25                       |
| 4                            | Rural Local Bodies Grant                                                                     | 3,630.39                     | 4,199.71                     | 5,674.70                     | 5,018.00                     | 3,709.00                     |
| 5                            | Health Sector Grant for Local Bodies                                                         | 0.00                         | 0.00                         | 0.00                         | 0.00                         | 1,116.31                     |
| 6                            | National Disaster Response Fund                                                              | 1,363.47                     | 0.00                         | 953.17                       | 1,255.27                     | 1,038.96                     |
| Other Transfers              | Other Transfers                                                                              | Other Transfers              | Other Transfers              | Other Transfers              | Other Transfers              | Other Transfers              |
| 1                            | Special Assistance                                                                           | 3,414.00                     | 739.47                       | 0.00                         | 195.74                       | 250.00                       |
| 2                            | EAPs                                                                                         | 1.09                         | 3.51                         | 0.38                         | 0.00                         | 0.00                         |
| (B) Loans                    | (B) Loans                                                                                    | (B) Loans                    | (B) Loans                    | (B) Loans                    | (B) Loans                    | (B) Loans                    |
| 1                            | Special Assistance to States for Capital Expenditure/Investment (50-year interest free loan) | 0.00                         | 0.00                         | 0.00                         | 843                          | 1,246.50                     |
| 2                            | EAPs                                                                                         | 1,391.46                     | 2,533.78                     | 1,278.42                     | 1,831.97                     | 1,387.78                     |

(b) to (d): As per the extant practice, release of funds to States under various programmes including Schemes/Programmes mandated by the Finance Commission are governed by prescribed guidelines of the  respective  Schemes/Programmes, submission of Utilization Certificates for funds released as per General  Financial  Rules  (GFRs).  Funds  that  remain  unutilized  are  adjusted  towards  the  Grants-inAid/Loan  payable  during  the  next  years.  The  Ministries/Departments  of  the  Union  Government conduct regular evaluation of the Schemes being implemented by them. The NITI Aayog also conducts concurrent evaluation of the selected Programmes/Schemes.

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