Question : Release of Funds under 12th Five Year Plan

(a) whether the Government has not paid the amount due to Bihar for the 10th, 11th and 12th Five Year Plans;

(b) if so, the details thereof along with the amount due to Bihar for the said three plan periods/scheme-wise, amount-wise;

(c) whether the State Government is facing difficulty in executing its development work as a result of delay in the payment of said dues; and

(d) if so, the details thereof and the time by which the said amount is proposed to
be paid to the Government of Bihar?

Answer given by the minister

MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI JAYANT SINHA)

(a) to (d) Till 2014-15, the Planning Commission (now NITI Aayog) was entrusted with preparation of Annual Plan size of States. The Annual Plans of the States were finalized making assessment of inter-state and inter-sectoral Plan priorities, including special needs, within the overall availability of resources at the Central and State level. Details of year-wise approved Annual Plan outlay and actual expenditure from 2002-03 to 2014-15 is given as below:

Year-wise approved outlay and actual expenditure during 2002-03 to 2014-15.
Sl. No. Year Approved Plan Outlay Actual Expenditure
1 2002-03 2964.40 2206.61
2 2003-04 3320 2627.03
3 2004-05 4000 3196.47
4 2005-06 5330 4465.50
5 2006-07 8250 8549.70
6 2007-08 10200 9652.30
7 2008-09 13000 12510.77
8 2009-10 16000 14183.51
9 2010-11 20000 18717.58
10 2011-12 24000 21018.55
11 2012-13 28000 26351.19
12 2013-14 34000 29851@
13 2014-15 55099 Not available
Source: NITI Aayog @ Anticipated

No payment from Central Government is due for Bihar State for previous years as release of Central Assistance to States is made based on compliance of scheme specific guidelines by the States, submission of Utilization Certificates for funds released as per General Financial Rules (GFR) and the balance that remain unutilized is adjusted towards the Grant-in-aid payable during the next year.

Consequent to the recommendations of 14th Finance Commission (FFC), share of States in the net proceeds of union taxes has been significantly enhanced from 32% to 42%. The total tax devolution to Bihar State for the period 2015-20 estimated by the 14th Finance Commission (FFC) is at Rs. 381592.27 crore against the estimated tax devolution of Rs. 158341.22 crore by 13th FC (2010-11 to 2014-15). This shows an increase of 141% increase in tax devolution. The higher tax devolution will allow the State greater autonomy in financing and designing of schemes as per their contextual need and priority of the State. Further, during 2015-16, Central Government has made a provision of Rs. 1887.53 crore for Special Plan for Bihar in Demand no. 37 of Department of Expenditure against which an amount of Rs. 1766 crore has already been released so far.

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