Biharhas urged the Centre to allot Rs 20,000 crore in the 2023-24 Union budget for development and creation of assets in the state and suggested 90:10 ratio of the central and state Shares of funding for the centrally sponsored schemes (CSS). The state also suggested to the Centre to increase the state’s Fiscal Deficit to 4% of the gross state domestic product (GSDP).
Similarly, Choudhary suggested that the Cess and Surcharge collected by the Centre should be included in the central divisible pool to transfer a part of it to the states.
Noting that the central fiscal deficit has been periodically increased in the past far beyond 6%, Choudhary said the Centre should permit the state to have its fiscal deficit 1% more than the mandatory 3% of the GSDP for a backward state like Bihar.
Choudhary said the Centre had provided Rs12,000 crore under Bihar specific plan (BSP) in the 2012 Budget for use in Infrastructure Development and on the creation of assets.
While 95% of the BSP fund provided in 2012 had been utilised, another chunk of Rs20,000 crore should be allotted in the forthcoming Union budget as BSP-Phase II, Choudhary said.