April 21, 2024

The Bihar

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Finance Commission urged to provide higher tax revenue to Bihar

2 min read

Burying their differences, all political parties in Bihar have collectively urged the 14th Finance Commission to provide higher tax revenue to the state to tide over socio-economic backwardness on long-term basis.

In a joint memorandum prepared by mainstream political parties, and academic and professional organisations, the 14th Finance Commission has been urged to increase states’ share in the Central taxes from the existing 32 per cent to 50 per cent that will benefit Bihar too.

The political parties have also proposed that the indicative limit of overall revenue transfer to the states’ be enhanced from the present 39.5 per cent to at least 60 per cent of the Centre’s gross revenue receipts.

The memorandum has further suggested to the 14th Finance Commission to accord 20 per cent weightage to population, 70 per cent to income distance and 10 per cent to fiscal disciple in the tax devolution formula.

The state specific grants have been suggested for re-orienting and strengthening social sector, infrastructure, e-governance and IT sector, besides funds for rehabilitation of sick units, Patna airport, agriculture roadmap and other areas.

The present Finance Commission has been asked to consider allocation of four per cent of the total Central taxes for the local bodies like the Panchayati Raj Institutions and Urban Local bodies.

The memorandum will be submitted to 14th Finance Commission members during their three-day visit to Bihar from January 6, the Asian Development Research Institute (ADRI) founder member secretary Shaibal Gupta told reporters.

It’s an endeavour of all political parties to shed their differences to seek additional financial devolution from the Centre on the basis of recommendations of the 14th Finance Commission so that the socio-economic disparities in Bihar could be bridged by getting funds in commensurate to actual need of the state and its people, he said.

Besides the Speaker Uday Narayan Chaudhary, the JD(U) ministers Vijay Kumar Chaudhary and Bijrendra Prasad Yadav, BJP MLA Vinodanand Jha, senior RJD leader Abdul Bari Siddique and representatives of LJP, BSP, CPI(M), CPI and other political outfits were present at the press meet to showcase unity for fulfilment of socio-economic aspirations of Bihar.

Courtesy: PTI

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