Bihar deputy chief minister Sushil Kumar Modi. Telegraph picture

Patna, Jan. 19: Deputy chief minister of Bihar Sushil Kumar Modi today strongly protested the decision of the Thirteenth Finance Commission to reduce the state’s share to 10.08 per cent from more than 11 per cent.

Putting across the views of Bihar at the Union finance minister’s pre-budget meeting in New Delhi, Modi said the Thirteenth Finance Commission had seriously undermined the concept of equality and nationally comparable public service in the state. “This deficit must be compensated with special grants,” Modi said.

Citing severe flood and drought situations faced by Bihar in the recent years, Modi stressed the special grants given to the state under Backward Region Grant Fund (BRGF) of Rs 1,000 crore must be hiked to Rs 2,000 crore per year.

He reasserted the claim of Bihar for a special category status and recalled the memorandum submitted to this effect in June, 2006.

“Although Bihar’s GSDP has been encouraging in the past few years, we are behind in per capita income. Despite progress in the social sector we need massive investment to catch up with the national per capital income,” Modi said.

The deputy chief minister also pointed towards the low credit deposit ratio of the state and stressed that banks should be directed to increase their lending in the state. He dwelt on the poor banking infrastructure in Bihar and said the beneficiaries of schemes like MNREGA had to wait for two weeks to get their wages through banks.

Modi said the state needed Rs 26,000 crore for implementing the Right to Education (RTE) Act. Claiming that Rs 10,000 crore would be recurrent expenditure, he sought 90 per cent special grant for his state to implement the RTE Act. The deputy chief minister pointed out that 2,935km of national highways are maintained by the state government, but schemes related to the maintenance are sanctioned by the Government of India.

“There has been insufficient release of funds for road maintenance. As a result, the state government has spent about Rs 969 crore for their maintenance. Despite request by the Bihar chief minister, the spent amount has not been reimbursed yet,” he said.

Modi also asked the Centre to reduce duties on petroleum products to tame rising inflation, which soared to 8.43 per cent in December, up from 7.45 per cent a month ago.

“Inflation, particularly in food and primary articles ... fuelled by petrol and diesel increases has been a particular worry for all of us. While price increase due to international price movements is to some extent understandable, the commensurate increase in taxes, which are levied ad valorem can be avoided,” Modi said.