Kumar's demand comes days after he criticised the banks for their ineffectiveness to implement demonetisation and questioned its success to curb black money
Bihar Chief Minister and NDA ally Nitish Kumar has reiterated his demand before the Centre to accord special category status (SCS) to 'land locked' Bihar, days after he did a U-turn on demonetisation and questioned the benefits of the currency ban exercise.
Sharing his views on "why Bihar needs to be considered by the Fifteenth Finance Commission (XV FC)" in a press note issued on Tuesday, Kumar said, "The categories of land locked and least developed are internationally eligible for special and differentiated treatment and we have repeatedly raised the demand with the central government, to accord SCS to Bihar."
The CM said SCS will enhance the availability of resources, by lowering the state's contribution in centrally-sponsored schemes, improve access to external resources, act as a catalyst for private investment based on tax breaks and concessions, spur employment generation and improve life quality."
Kumar's demand comes days after he criticised the banks for their ineffectiveness to implement demonetisation and questioned its success to curb black money.
Kumar said Bihar's share in the divisible pool of taxes has steadily gone down during the last four FCs and exhorted the XV FC to consider "grants-in-aid for some state specific needs", as "formula-based transfers do not meet the needs of specific states, they need to be supplemented by grants-in-aid on an assured basis and in a fair manner to encourage backward states to develop and catch up with the developed states."
Citing the lack of major industries, high population density, annual floods and other woes, Kumar said, "Some states are far below the national average on multiple parameters of development like per capita income, education, health, electricity, institutional finance, etc., which is why the demand for SCS for Bihar."
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