The INDIA bloc government on Saturday criticised the Centre for significantly cutting grants allocated to several Centrally sponsored schemes, alleging that this has hindered Jharkhand’s overall development progress.
Addressing a query raised by Congress MLA Pradeep Yadav during the Budget session of State assembly, Parliamentary Affairs Minister Sudivya Kumar (Sonu) announced that the state government would initiate a detailed review to evaluate the grants-in-aid and loans received from the Centre and their impact on various state-run schemes.
The proposed study will also analyse the broader financial repercussions on Jharkhand's economy and developmental programs. Congress Legislature Party Leader Pradeep Yadav had specifically questioned whether the Centre had reduced grants for centrally sponsored schemes over the last few financial years.
In response, the state government presented official data, showing that Jharkhand received ₹8,828.89 crore in Central grants during 2022-23, Rs 8,980.63 crore in 2023-24, and Rs 5,736.27 crore up until January of the ongoing 2024-25 fiscal year.
Minister Sudivya Kumar accused the Union government of showing a "step-motherly attitude" towards Jharkhand by slashing tax revenues and grants-in-aid, which he claimed has adversely affected the state’s development and financial planning. He added that the upcoming evaluation would thoroughly assess how the reduction in central assistance has impacted the execution of key schemes and the welfare of citizens.
During the debate, MLA Pradeep Yadav highlighted that neighbouring Bihar received Rs 1.65 lakh crore in central taxes and grants during 2023-24, whereas Jharkhand was allocated only Rs 46,000 crore in the same period. He called for a comparative study to examine whether Jharkhand has been treated unfairly in the distribution of central funds.
Responding to these concerns, Minister Kumar assured that a comprehensive assessment would be conducted, comparing Jharkhand’s share of central loans and grants with those of neighbouring states. The findings, including any evidence of reduction in funds allocated to Jharkhand, will be made public to ensure transparency.
Additionally, Gandey MLA Kalpana Soren, wife of Chief Minister Hemant Soren, sought details regarding the loans Jharkhand has secured from the Centre.
Kumar shared a breakdown of loan data, revealing that Jharkhand received Rs 20,825 crore in loans from 2008-09 to 2013-14, Rs 42,956 crore from 2014-15 to 2018-19, Rs 9,593 crore in 2019-20, and Rs 2,002 crore till January 2025.
Despite these financial hurdles, Kumar emphasized that Jharkhand has demonstrated strong financial management over the past six years. However, he reiterated that the decline in central grants has strained the state's economy, prompting the need for a thorough evaluation of the long-term consequences of reduced funding.
