(BiharTimes) It has often been claimed these days that underdeveloped states, including Bihar, are a major beneficiary of central largesse. Given this it becomes important to have a hard look at the facts and figures and message emanating from the analysis of the same. As such fund flow from the center to states takes place in one of the following four ways:

It is obvious from the above mechanism that federal government enjoys absolute discretion only in the matter of central investments. Central benevolence towards specific states can be decided only on the basis of the investments it is making there.

For a judicious assessment of UPA led central government it would be pertinent to consider a period starting from 1st April 2004 till date. A cursory look at the figures for the period under consideration, as exhibited in the following chart, has an interesting story to tell. Four states, viz. Maharashtra, West Bengal, Uttar Pradesh and Gujarat, together make up for 50% of the central investments. In rupees terms, their share corresponds to one lac five thousand fifty five crores (INR 10,55,52,13,00,000) of the total central investments of two lac nine thousand and fifty crores (INR 20,90,47,34,00,000).  Further, a major chunk of this has been allocated to just two states that is Maharashtra at 16% and West Bengal at 15%. In contrast, Bihar got only 3.87% of the central investments. Madhya Pradesh (3%), Rajasthan (3%) and Orissa (2%) lagged further behind.

Above figures change once the other fund flows are combined in the investment stream.  Because of better share in tax devolution, situation of underdeveloped states improve as exhibited in the following charts. Share of Bihar typically improves to around 8%. Per capita it still falls short from other states. Even considering 1971 as the population base year, Bihar should have averaged 8.25% of central funds. Thus, while finance commission allocations makes it appear that Bihar is recipient of around 11% of the central funds, factually it is much lower as stated above. Even after exclusion of loan components this ratio marginally improves to around 8.23%.

Thus, available facts do not support the case made out for central benevolence towards Bihar, or other underdeveloped states for that matter. If anything, it just shows that central government is going against the very spirit of inclusive development as embodied in the recommendations of Finance Commission. Figures on the record bear out the fact that UPA dispensation has only worked to further marginalize Bihar and other underdeveloped states in national agenda for development. If left to sole discretion of federal government, underdeveloped states would have been much worse. Saving grace for the underdeveloped states has been the mechanism inbuilt in Indian constitution.

Comment

comments...

I am very much fascinated with the way you have been getting well thought out articles by Mr. Pratik Anand. It is a trully revealing story and based on facts and figures. It has been historically true that the federal government of India has been treating the under-developed states like Bihar step-motherly. It may not be out of context to mention that Bihar has been ignored by the Centre on every count and its economy and polity has been dictated by the central leadership for its own manipulation. Be it the decision of setting up of headquarters of Bihar-based PSUs in places like Kolkata or New Delhi or the draconian and unjustified freight equalisation policy of the government, Centre (or precisely the Congress leadership) has been manipulative against the state. Systematic and conspirational neglect of the erstwhile South Bihar (now Jharkhand) has culminated into bifurcation of the state. It is not a mystery considering the design of the central leadership that after Shri Krishna Singh no leader from the state was nurtured or was allowed to get the stature who can stand firm before the central leadership (leader like late L.N.Mishra was eliminated by the goons of Indira Gandhi).

It is time for at least next decade or so, we as Biharis forget our differences and caste biases and present a unified lot before the country to get our dues. It is time to put Biharism before all the petty interest or sectional interests.

Mukesh Kumar

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Note sure what the meaning of inclusive growth for UPA Govt. is when the 2nd most populous state of India is neglected. It is high time that we realize and fight for our rights. Bihar has been funding the investment of other states by providing free mines and natural resources since years. Congress must pay the price for such pathetic approach to Bihar.

Ram Nivas Kumar

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No doubt that Mr.Prateek Anand has truly brought the truth that Federal Government is biased in allocation of development funds and this situation is not of recent but it has been happing from the decade of 80s. Congress government at the centre has always given step motherly treatment to the Bihar and other underdeveloped states like Orissa, jharkhand etc. It's the reason why the mineral rich states like Orissa, jharkhand are still most backward states of India. Congress government has exploited the minerals of theses states for the benefits of states like maharastra, gujarat. Congress government is trying to make its strong base in the states UP and WB which is why it allocating more funds to these states while it considers the states like maharastra and gujarat its stronghold. But Congress government's this approach has marginalized the underdeveloped states too much. The type of article by Mr. Anand will help to show the true face and biased approach of Congress party to the general public.

Vivek Singh

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Down with Congress Party -The Original wrecker of Bihar.Let this be sent to all Biharies and all Indians to show the true face of Congress Party.

Anand Gupta