Lok Sabha Question No. 5067 (UNSTARRED), answered on 2022-04-04
Subject: Special Package for Bihar
Ministry: FINANCE
Asked by: Alok Kumar Suman

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION No . 5067

TO BE ANSWERED ON MONDAY, April 04, 2022/Chaitra 14, 1944 (Saka),

## Special Package for Bihar

## 5067.  DR. ALOK KUMAR SUMAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether it  is  a  fact  that  the  Government  announced  a  special  package  of  Rs.1.25  lakh crore for development of Bihar in 2015;
- (b) if so, the details thereof and the amount of money allotted and spent;
- (c) whether there is any proposal to grant special assistance to any State including Bihar for development of infrastructure and if so, the details thereof;
- (d) whether the National Multi-dimensional Poverty Index Baseline Report has been released by  the  NITI  Aayog  in  2021  in  which  Bihar  has  the  highest  proposition  of  multi dimensionally poor people of the State's population; and
- (e)  if so, the reasons as to why the Fifteenth Finance Commission has reduced the devolution of funds with net shareable taxes to the State of Bihar?

## ANSWER

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

(a) and (b): Yes sir, Hon'ble Prime Minister had announced a special package of Rs. 1.25 lakh crore  for  all  round  development  of  the  State  of  Bihar  on  18 th August,  2015.  Prime  Minister's Package  for  Bihar-2015  focuses  on  sectoral  development  in  the  areas  namely  Roads,  Rural Development, Petroleum and Natural Gas, Civil Aviation, Higher Education, Skill Development, Agriculture,  Railways,  Power,  Communication,  Tourism  and  Health.  Accordingly,  concerned Ministries/Departments  have  been  designated  to  implement  the  package  as  per  the  sectoral components.  Ministry  of  Finance  has  released  an  amount  of  Rs.11284.0685  crore  towards residual liabilities of Special Plan for Bihar (BRGF-State component) now part of PM's Package for Bihar-2015.

(c): The Union Government has launched a Scheme of Special Assistance to States for Capital Expenditure under which 50 years' interest free loan was provided to States. Under the Scheme, an amount of Rs. 843.00 crore in 2020-21 and Rs. 1246.50 crore in 2021-22 was released to the State of Bihar.

(d): The National Multidimensional Poverty Index (MPI) for the States released by NITI Aayog is based on the Global Multidimensional Poverty Index published by the UNDP. In this index, three dimensions - health, education, standard of living have been taken. The main objective of the MPI is to provide an analytical tool to the States to promote competitive spirit for poverty alleviation. As per the National Multidimensional Poverty Index Baseline Report published by NITI Aayog, the percentage of population who are multi dimensionally poor in Bihar is 51.91%.

(e): In respect of devolution of funds, the 15 th Finance Commission had recommended horizontal tax devolution based on principles of need, equity and efficiency. The devolution of taxes and duties  to  the  State  of  Bihar  in  2020-21  was  Rs.  59,861.41  crore,  which  has  gone  up  to  Rs. 86,570.97 crore (as on 24.03.2022) in 2021-22.

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