Lok Sabha Question No. 2064 (UNSTARRED), answered on 2022-12-19
Subject: Schemes for Backward States
Ministry: FINANCE
Asked by: Kaushalendra Kumar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION No. †2064

TO BE ANSWERED ON MONDAY, December 19, 2022/Agrahayana 28, 1944 (Saka)

## SCHEMES FOR BACKWARD STATES

## †2064. SHRI KAUSHALENDRA KUMAR

Will the Minister of FINANCE be pleased to state:

- (a) the  measures  taken  by  the  Government  to  overcome  the  backwardness  of  Bihar, Odisha, Assam and the other backward States;
- (b) the year-wise and State-wise details of additional funds allocated during the last three years to all the backward States;
- (c) whether Bihar, Assam and Odisha have been lagging behind continuously due to the natural disasters hitting these States every year and if so, the details thereof and the reaction of the Government thereto; and
- (d) whether the Government proposes to frame any special scheme in view of the said situation in aforementioned States and if so, the details thereof?

## ANSWER

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

(a) to (b): The 15 th Finance Commission (15 th FC) has assessed the own revenue, expenditure requirements  and  financial  needs  of  each  State.  The  Commission  has  maintained  vertical share of the divisible pool of taxes for the States  for the award period of 2021-26 and has also recommended the horizontal devolution formula focussing on specific objectives such as (i)  to  help  bridge  the  vertical  fiscal  gap  of  the  States;  (ii)  to  provide  horizontal  equity  (by providing higher share to poorer regions); (iii) to equalise fiscal capacities of States (revenue equalisation);  (iv)  to  provide  for  cost  differentials  among  States  for  providing  basic  public service (expenditure equalisation).

Thus, after the devolution, some  States including the State of  Assam  were recommended for 'Grant-in-Aid for Revenue Deficit' by the 15 th FC in its main report for the years 2021-26. The State of Assam is eligible to receive an amount of Rs. 14,184 crore for the period from 2021-22 to 2023-24 as 'Grant-in-Aid for Revenue Deficit'. Similarly, the 15 th FC in its interim report for the year 2020-21 has recommended 'Grant-in-Aid for Revenue Deficit' amounting to Rs. 7,579 crore for the State of Assam. Accordingly, an amount of Rs. 7,578 crore in the financial year 2020-21, an amount of Rs. 6,376 crore in the financial year 2021-22 and an amount of Rs. 3,667.50 crore in the current financial year  (as on 12.12.2022)

towards 'Grant-in-Aid for Revenue Deficit' has been released to the State of Assam by the Union Government.

Further,  'Special  Assistance'  under  Demand  for  Grants  'Transfers  to  States'  is earmarked for 'spillover committed liabilities for which budget provision is not made' and 'other need based assistance to the States'. Under this head, an amount of Rs. 195.74 crore in financial year 2020-21 and an amount of Rs. 250.00 crore in financial year 2021-22 has been released to the State of Bihar.

In  addition,  the  Union  Government,  under  the  'Scheme  for  Special  Assistance  to States for Capital Expenditure' for 2020-21 to 2021-22 and 'Scheme for Special Assistance to States for Capital Investment for 2022-23' is providing special assistance (loan) to States in the form of 50-year interest free loan. The details of special assistance (loan) provided to the States of Bihar, Odisha, Assam are provided as under:

(Rs. in crore)

| SI. No.   | State   | 2020-21    | 2020-21   | 2021-22    | 2021-22   | 2022-23 (as on 14.12.2022)   | 2022-23 (as on 14.12.2022)   |
|-----------|---------|------------|-----------|------------|-----------|------------------------------|------------------------------|
|           |         | Allocation | Released  | Allocation | Released  | Allocation                   | Released                     |
| 1         | Bihar   | 843.00     | 843.00    | 1,246.50   | 1,246.50  | 10,725.4212                  | 4,555.7873                   |
| 2         | Odisha  | 471.50     | 471.50    | 561.00     | 517.12    | 5,542.33                     | -                            |
| 3         | Assam   | 450.00     | 450.00    | 600.00     | 600.00    | 4,346.54                     | 1,407.00                     |

(c) to (d): The 15 th Finance Commission in its report has recommended allocation of funds to the States for disaster management and mitigation based on risk exposure, capacity to spend, hazard and vulnerability (disaster risk index). These funds are released to the States based on the  recommendation of the Nodal Ministry i.e. the Ministry of Home  Affairs. As recommended  by  the  Ministry  of  Home  Affairs,  the  Ministry  of  Finance  has  released  the Central share of State Disaster Response Fund (SDRF)/State Disaster Risk Management Fund (SDRMF) and Additional Central Assistance from National Disaster Response Fund (NDRF) to the State Governments of Bihar, Assam and Odisha to undertake immediate relief measures for  the  people  affected  by  natural  calamities.  The  details  of  releases  of  last  three  years  are provided as under:

(Rs. in crore)

| Sl. No.   | State   | SDRF/SDRMF   | SDRF/SDRMF   | SDRF/SDRMF   | SDRF/SDRMF   | NDRF     | NDRF     | NDRF     | NDRF      |
|-----------|---------|--------------|--------------|--------------|--------------|----------|----------|----------|-----------|
| Sl. No.   | State   | 2019-20      | 2020-21      | 2021-22      | 2022-23 *    | 2019-20  | 2020-21  | 2021-22  | 2022- 23* |
| 1         | Bihar   | 631.13       | 1,416.00     | 1,416.00     | 594.80       | 953.17   | 1,255.27 | 1,038.96 | -         |
| 2         | Odisha  | 552.00       | 1,604.00     | 1,604.00     | 674.00       | 3,294.10 | 500.00   | 500.00   | -         |
| 3         | Assam   | 503.10       | 772.00       | 772.00       | 648.80       | -        | 44.37    | -        | 250.00    |

*: As on 12.12.2022

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