Recent comments made by Sushil Modi, a senior leader in Bihar, have rekindled discussions about the Centre’s financial assistance to states. Addressing concerns of alleged discrimination, Modi asserted that, next to Uttar Pradesh, Bihar is the recipient of the most substantial central assistance, effectively negating any notions of bias.
A significant point of contention was the Bihar government’s alleged delay in returning a substantial sum to the Central government. Modi elaborated, “The state government’s procrastination in remitting Rs 4000 crore, which constitutes the interest on the remaining assistance amount for centrally sponsored schemes, spanned more than five months. Such a delay inevitably impacted the inflow of assistance for the subsequent fiscal year.”
Modi further bolstered his argument by highlighting the massive sum that the state received from the Centre. “Had there been any discrimination at play, it’s implausible that Bihar would’ve been allocated a staggering Rs 42,000 crore as a share of central taxes,” he said.
Drawing attention to a pivotal policy stipulation, Modi emphasized that any state, regardless of its ruling party, must first clear its outstanding interest amount to the Centre before expecting financial assistance for the ensuing year. “This principle is uniformly applied across the board, even to states governed by the BJP. Thus, claiming discrimination on this ground is baseless,” Modi stated.
Sushil Modi’s remarks underscore the significance of transparent financial transactions between the Centre and the states. While Bihar remains a crucial recipient of central funds, the timely return of dues and adherence to financial protocols is imperative for the seamless functioning of fiscal relations. Modi’s clarifications serve as a reminder that accusations of discrimination need to be grounded in tangible facts rather than mere conjectures.
