After a warm handshake and exchange of pleasantries with Prime Minister Narendra Modi at the wedding ceremony of lalu Prasad’s daughter and Mulayam Singh Yadav’s grandnephew in New Delhi on Thursday, Bihar Chief Minister Nitish Kumar, on his return here, sent a three-page letter to the PM urging him to provide special assistance to Bihar in the light of the possible cut in the revenue due to recommendations of the 14th Finance Commission. “The recommendations are regressive for the resource crunch and poor State like Bihar,” he protested.

The CM also reiterated his demand for special category status to Bihar. He reminded the PM that after the bifurcation of Bihar, the Bihar Reorganisation Act, 2000 had provided that a cell under the control of vice chairman of Planning Commission would be constituted which would recommend special assistance to the State.

This provision was only partially implemented and some assistance was extended under Backward Region Grant Fund (BRGF) but, he added, a major cut on this assistance was made in the current fiscal it is apprehended that this assistance would be discontinued from next financial year.

Referring to the PM’s letter on the recommendations of the Finance Commission, the CM said, “You have mentioned that all the Eastern States have been put in one category and that these States will get more royalty on the minerals following a hike and the States would get revenue of over

Rs1 lakh crore. But this revenue increase is not going to bring cheers for Bihar since the State was left without a single mineral after the creation of Jharkhand.”

Nitish referred to the PM’s assertion while launching the Niti Ayog that a national vision would be prepared to eliminate the regional disparities and to provide all opportunities for development of human resources indices. That gave an impression, Nitish said, that the backward States would get special attention and assistance but the recommendation of curtailment in Central share in its projects would only be a double whammy for such States.

“The recommendations of the 14th Finance Commission is not unanimous and one of its members Abhijit Sen gave a note dissent expressing his displeasure over merging the devolution Central tax revenue for the backward States particularly Bihar.

Sen said he was worried about some States like Bihar and the existing special category States which get huge Central funds under other heads, despite higher devolution of funds from Centre to these States. “This is because the Centre has only agreed to higher devolution recommendation but is yet to take a view on its other recommendations, including the revenue deficit grant. Besides, these States will have to fend for their capital expenditure, which cannot be compensated by revenue-deficit.”

The CM said the devolution formula has caused concern for Bihar because under this formula Bihar’s share would be 9.665 per cent.

The 11th Finance Commission had fixed a share of 11.59 per cent which was reduced to 10.92 per cent by the 12th Finance Commission. Bihar which is a landlocked State is backward in geographical and social infrastructure and its per capita income is 40 per cent less than the national average. "From the point of view of inclusive development Bihar should get assistance as per its population,” he demanded.