PM Modi’s Rs 1.25 lakh cr package a parable to change people: Nitish Kumar writes to Jaitley

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Patna: Amid charges drifting thick and quick over Centre’s Rs 1.25 lakh crore package to Bihar forward of Assembly polls, Chief Minister Nitish Kumar on Tuesday once again trashed a executive assist as “packaged myth” of aged schemes to change a electorate.

Bihar Chief Minister Nitish Kumar. AFPBihar Chief Minister Nitish Kumar. AFP

Bihar Chief Minister Nitish Kumar. AFP

Kumar voiced his hard-hitting views on a special package in a minute to Union Finance Minister Arun Jaitley sent on Tuesday. It was in response to Jaitley’s minute to Kumar antiquated 28 Aug that reached CM’s bureau on 4 September.

“It is transparent that this package for Bihar announced usually before elections is zero though good recognised finished parable devised to change people,” Kumar pronounced in a letter, a duplicate of that was done accessible to a media.

The special package by a PM for Bihar announced during Ara on 18 Aug is being highlighted daily in newspapers in Patna that creates it transparent that it would find an critical place in a debate of a BJP-led NDA in a state poll.

Kumar forked to miss of chaotic movement in a Union Finance Ministry to lift supports for it to strut his charge.

“Your method is not seen to be scrambling to find resources, as if no additional allocations are to be supposing from within a Union Budget,” he pronounced in a letter.

Kumar also appended a minute list to prominence a standing of projects enclosed in a special package.

Besides ripping into a PM’s special package, Kumar in his missive to a Union Finance apportion also contested a executive government’s explain that Bihar is going to advantage a lot by boost in taxation devolution as per recommendations of a 14th Finance Commission.

The Bihar CM who has been creation a postulated conflict on a PM’s special package, sought to weigh it on 4 elemental parametres.

Asking a “actual size” of a package, Kumar highlighted that a vast cube of a package adult to a balance of Rs 1.08 lakh crore of a sum Rs 1.25 lakh crore was entrance out of a supports already betrothed to a state for persisting and pre-approved growth attempts and schemes.

“Same sum are now being upheld off as new account or investment,” he alleged.

Further, citing instance of highway sector, he said, “This package claims to appoint an additional Rs 54,713 crore for 41 projects for building highways, bridges rail over bridges. But,reality is that most before this announcement, 37 out of 41 projects value Rs 47,553 crore were already authorized or authorized in element between 2007-2015.”

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Secondly, a Chief Minister asked a “exact extend of a Government of India vis-a-vis other stakeholders?”

“Is a supervision of India holding solitary shortcoming vis-a-vis this incremental apparatus or are there other stakeholders who will be contributing to this?” he said.

“Also there is no discuss or confirmation of state government’s contributions, possibly as partial of financial share or extend that of land for any of a due projects,” Kumar said.

Citing instance of a thermal energy devise to be taken adult by SJVN (Satluj Jalvidhut Nigam) during Buxar during an estimated cost of Rs 10,000 crore, he said, “SJVN, a Public Sector Undertaking (PSU) has not expelled an investment offer opposite this devise compartment date and it is not transparent that all stakeholders it will involve. Is Government of India treating a investment clearway as a investment in a state?”

Further he asked, “What is a time duration within that advantages of this package would be accrued? Would this income accumulate to a state in 1 year, 5 year or how many years?”

“In your minute we do not discuss that it will be implemented in phased manner, though though accurate timelines, a package appears to be a post-dated coupon with no certainty of encashment,” Kumar pronounced in his minute to Jaitley.

In a final indicate in his letter, Kumar asked, “What are modalities by that these advantages will be realised and strech a state?”

“Will it be given to a state government? Will it be routed by a third party? Who competence those be?” Kumar pronounced flagging concerns.

Kumar also purported defilement of suggestion of “cooperative federalism” by not consulting state government.

“If special needs of a state were to be unequivocally addressed and met, as is envisaged in Bihar State Reorganisation Act, 2000, a views of a state supervision would have perceived a due weightage along with views of Union government,” he said.

Rubbishing a special package, Kumar pronounced “instead of these piece-meal measures, a Union supervision should extend special difficulty standing to Bihar, if it honestly desires to residence backwardness of a state in a holistic manner.”

On fluctuating additional investment stipend and aloft additional depreciations for investment in back areas as art of a package, Kumar said, “All 38 districts in a state should be told as back districts, a offer for that has already been sent to a executive government.”

At present, 21 districts of Bihar have been announced backward.

The Chief Minister also contested Centre’s explain that 14th Finance Commission would accumulate advantages to Bihar.

“A minute research of a recommendations of a 14th Finance Commission and a Central Budget 2015-16 reveals that while supports being eliminated from pool of executive taxes to a states have been increased, on a other palm there has been a estimable rebate in a budgetary support supposing by Union supervision to a states for doing of state devise schemes,” Kumar told Jaitley.

The executive supervision in 2014-15 bill had eliminated to a states a sum of Rs 3,82,215 crore as share of executive taxes. In 2015-16 now a executive supervision is transferring Rs 5,23,958 crore, that is an boost of Rs 1,41,743 crore over a final year’s transfer, he said.

The share of supports for Bihar has witnessed a rebate from 10.9 per cent to 9.665 per cent, he said.

“It is improper to contend that a state supervision is going to accept Rs 2,25,198 crore some-more in 14th Finance Commission endowment duration as compared to 13th Finance Commission since this so called boost has to be noticed as a share of a sum accessible pool,” a Chief Minister said.

The sum divisible pool for states in 13th Finance Commission was Rs 14,55,430 crore out of that Bihar perceived Rs 1,58,385 crore that was 10.9 per cent. Now a sum divisible pool in a 14th Finance Commission is Rs 39,48,187 crore and Bihar will be removing Rs 3,83,583 crore that is 9.7 per cent, he said.

“The sum divisible pool in a 13th Finance Commission duration (Rs 14,55,430 crore) over a 12th Finance Commission duration (Rs 6,13,112 crore) was 2.37 times since a boost in Bihar’s share was 2.34 times.

“But, now if we see a boost in 14th Finance Commission duration over a 13th Finance Commission, a boost is 2.71 times though a analogous boost in Bihar’s share is usually 2.42 times,” he said.

“Bihar indeed stands to remove since even when a altogether pool has augmenting by 2.71 times in a 14th Finance Commission, the state’s share is usually augmenting by 2.42 times. If the share would have augmenting by 2.71 times, we would have got Rs 45,000 crore more,” Kumar said.