Patna, June 8: States such as Bihar were expected to gain heavily from the 14th finance commission recommendations as the states' share in the central taxes pool went up from 32 per cent to 42 per cent. But a subsequent reduction in the Centre's share in several of the central government-sponsored schemes seems to have virtually nullified that benefit.

Bihar actually ended up spending Rs 4,500 crore in 2015-16 and Rs 4,900 crore in 2016-17 - the first two years of the implementation of the commission recommendations - from its own kitty for its share of the central schemes.

"A poor state like Bihar, where per capita income is almost one-third of the national average and which has the highest population density among states which puts huge pressure on available resources, has been a big loser in terms of central funds in the first two fiscal yearswhen fund devolution as per 14th finance commission came into effect and new formula of fund sharing for central schemes was introduced simultaneously," said a senior state government official who is closely associated with works related to fund flow from the Centre.

The official claimed the Centre had failed to respond to Bihar's repeated request to stick to a point that was part of the 14th finance commission recommendations.

"...specific states, to the extent of their needs, not being fulfilled by formula based transfers should be provided supplementary grant based on a fixed and equity based parameter," reads the part of the 14th finance commission recommendation that Bihar has been highlighting.

Chief minister Nitish Kuumar had also raised the same point in his speech at the third governing council meeting of the Niti Aayog in Delhi on April 23 this year.

"Doesn't Bihar need supplementary grant? It is one of the poorest states of the country and the last two years have proved that the state was a net loser in terms of central funds. Why is the central government not looking into this?" asked the state government official.

State minister Bijendra Yadav agreed.

"Instead of devising ways for ameliorating the economic condition of a poor state like Bihar, the centre is trying to create an impression that it is doing much for the state," Bijendra said. "This is unfortunate and those ruling at the Centre should not forget that overall development of the country cannot be achieved by neglecting a state like Bihar which is home to over 10 crore people."

Asian Development Research Institute member secretary Shaibal Gupta said the problem was not unique to the Narendra Modi government.

"Like the Congress government of the past, the present NDA government at the Centre too is denying Bihar the possibility of equalisation through special help which gets reflected in the reduction in the Centre's share in various social sector schemes," the economist explained.

"That is why the state has been clamouring for special status so that the Centre could provide 90 per cent of the funds for central schemes."

Senior BJP leader Sushil Kumar Modi, however, vehemently contested the claims and maintained that a wrong picture was being portrayed by putting together the two funds - share in central taxes and central fund given for schemes.

"Enhanced fund flow under the central tax pool has provided untied funds to the state giving it the liberty to spend for its own plans," the former deputy chief minister said. "As far as central schemes are concerned, Bihar has not been able to get the budgeted amount because of its failure to utilise funds. One can take the example of the Pradhan Mantri Awas Yojana under which the state could not utilise funds in 2015-16 which would have provided houses to the poor people."

Gupta, however, saw the non-utilisation of central funds for schemes from a different angle. "States need to have the matching money to utilise the fund," Gupta said.