Lok Sabha Question No. 23 (UNSTARRED), answered on 2023-12-04
Subject: Central Assistance and GST Share to Bihar
Ministry: FINANCE
Asked by: Rajiv Ranjan (Lalan) Singh, Kaushalendra Kumar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION No. †23

TO BE ANSWERED ON MONDAY, December 04, 2023/ Agrahayana 13, 1945 (Saka)

## CENTRAL ASSISTANCE AND GST SHARE TO BIHAR

## †23.  SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH SHRI KAUSHALENDRA KUMAR

Will the Minister of FINANCE be pleased to state:

- (a) whether sum of rupees 86  thousand crore has not yet been released to Bihar despite reducing the amount of the Central assistance fund and share of GST, if so, the details thereof;
- (b) whether  Government has held up the payment of about 26 thousand crore rupees of tax amount and 60 thousand crore rupees of the Central assistance fund; and
- (c) if so, the details thereof and the time by which the said amount is likely to be released?

## ANSWER

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

(a) and (b):   The Ministry of Finance releases Grants-in-Aid, devolution of shareable taxes & duties  mandated  by  Finance  Commission,  'Special  Assistance',  Externally  Aided  Projects (Grants-in-Aid/  Loan) and  Special  Assistance  to  States  for  Capital  Expenditure/Investment (Loan) under Demands for Grant 'Transfers to States' to States including the State of Bihar. The Scheme-wise details of release of Grants-in Aid, devolution of shareable taxes and duties and loan to  the  State  of  Bihar  for  the  financial  years  2018-19  to  2022-23  are  provided  in Table below:

(Rs. in crore)

| Sl. No.   | Items                                           | 2018-19                      | 2019-20                      | 2020-21                      | 2021-22                      | 2022-23                      |
|-----------|-------------------------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|------------------------------|
| (A):      | Finance Commission Transfers                    | Finance Commission Transfers | Finance Commission Transfers | Finance Commission Transfers | Finance Commission Transfers | Finance Commission Transfers |
| 1         | Share in Central Taxes                          | 73,603                       | 63,406                       | 59,861                       | 91,353                       | 95,510                       |
| 2         | Central Share of State Disaster Response Fund   | 101.82                       | 631.13                       | 1,416.00                     | 1,132.80                     | 1,189.60                     |
| 3         | Central Share of State Disaster Mitigation Fund | 0.00                         | 0.00                         | 0.00                         | 283.20                       | 148.70                       |
| 4         | Urban Local Bodies Grant                        | 473.68                       | 637.79                       | 2,416.00                     | 836.25                       | 1,552.35                     |

(Rs. in crore)

| Sl. No.   | Items                                                                                        | 2018-19   | 2019-20   | 2020-21   | 2021-22   | 2022-23   |
|-----------|----------------------------------------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|
| 5         | Rural Local Bodies Grant                                                                     | 4,199.71  | 5,674.70  | 5,018.00  | 3,709.00  | 3,842.00  |
| 6         | Health Sector Grant for Local Bodies                                                         | 0.00      | 0.00      | 0.00      | 1,116.31  | 0.00      |
| 7         | National Disaster Response Fund                                                              | 0.00      | 953.17    | 1,255.27  | 1,038.96  | 0.00      |
| (B):      | Other Transfers                                                                              |           |           |           |           |           |
| 1         | Special Assistance                                                                           | 739.47    | 0.00      | 195.74    | 250.00    | 0.00      |
| 2         | Externally Aided Projects                                                                    | 3.51      | 0.38      | 0.00      | 0.00      | 0.00      |
| (C):      | Loans                                                                                        |           |           |           |           |           |
| 1         | Special Assistance to States for Capital Expenditure/Investment (50-year interest free loan) | 0.00      | 0.00      | 843.00    | 1,246.50  | 8,455.85  |
| 2         | Externally Aided Projects                                                                    | 2,533.78  | 1,278.42  | 1,831.97  | 1,387.78  | 1,648.32  |

Further, Government of India has already released the entire amount of provisionally admissible GST compensation to all States/UTs including Bihar for loss of revenue arising on account of implementation of Goods and Services Tax for five years i.e., from 1 st July, 2017 to  30 th June,  2022.  Final  GST  Compensation  arising  out  of  reconciliation  of  provisional figures  with  audited  figures  is  released  immediately  on  receipt  of  Accountant  General's (AG's) certificate and no amount is pending for release to the state of Bihar.

(c):      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-in-Aid/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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