Patna, February 21, 2007It is not only the common man who is looking up for concessions and measures in the Budget to bring down the inflationary pressures. Bihar Chief Minister Nitish Kumar is a concerned person too. He expects the Union Budget to come up with a sustained policy to curb inflationary trend heating the economy and the fulfillment of the long-pending demand of according special status to Bihar.
A mere reduction in the prices of petrol and diesel is not going to check the unhindered price rise, says Kumar. “It is due to the Centre’s policy that the inflation has risen to 6.73 per cent. I expect that the Finance Minister would initiate measures to provide relief to the entire nation,” he said.
“The Centre’s promise to grant special status to the state has remained unfulfilled so far. I wish that the promise is redeemed in this Budget so that the state becomes a more compelling destination for the investors.’
Bihar, he said, is poised to embark on a major growth phase to become a developed state by 2015. As per an estimate of the state government, Bihar is expecting an investment of Rs 100,000 crore in the next five years. The state’s another demand grant of tax breaks on investments in infrastructure. The Nitish government, however, does not want increase in service tax.
Maintaining that poverty alleviation was a priority area, the chief minister said the Centre should expand the 13 parameters to 16 for deciding a BPL household in order to extend the benefits to a greater number of people living under the poverty line. “The Centre should ensure that adequate funds were earmarked and allocated to the state too carry out poverty alleviation schemes,” he said.
The Chief Minister, happy over the increased Plan size, expects full cooperation from the Centre. “Development in Bihar is taking place at a fast pace. If we continue to get the Centre’s support, we will soon be able to improve and strengthen basic facilities such as power, roads, water, education, and law and order. The budget proposals should focus on infrastructure, flood control, irrigation, roads and power,” he said.
“We want the policy of protected farming to be encouraged to boost the farm sector. States like Bihar, which have been deprived of the benefits, would certainly go in for a major economic overhaul,” Deputy Chief Minister Sushil Kumar Modi, who also holds the Finance portfolio, told Hindustan Times.
That apart, what is worrying the state government is the move to incorporate recommendations of the Sixth Pay Revision Committee. Accepting the recommendations of the committee would be a disaster for Bihar, where the estimated average pay of a government employee is Rs 1.77 lakh per annum. Of the total government staff, Bihar has 20 per cent fourth grade and 77 per cent third grade employees.
The industry sector wants a balance between the government’s revenue needs and its own wishlist. “Industry never wants taxes, but we cannot have zero tax regime,” said a Bihar Industries Association member who did not wish to be named. Besides, the industry also wants focus on food processing units and creation of dry ports for land-locked states.
“The Budget is being presented in the backdrop of current economic buoyancy and favourable expectations. We expect the Centre to gift Bihar with the special status this year,” said Dr Shaibal Gupta, Director of the Asian Development Research Institute.
A mere reduction in the prices of petrol and diesel is not going to check the unhindered price rise, says Kumar. “It is due to the Centre’s policy that the inflation has risen to 6.73 per cent. I expect that the Finance Minister would initiate measures to provide relief to the entire nation,” he said.
“The Centre’s promise to grant special status to the state has remained unfulfilled so far. I wish that the promise is redeemed in this Budget so that the state becomes a more compelling destination for the investors.’
Bihar, he said, is poised to embark on a major growth phase to become a developed state by 2015. As per an estimate of the state government, Bihar is expecting an investment of Rs 100,000 crore in the next five years. The state’s another demand grant of tax breaks on investments in infrastructure. The Nitish government, however, does not want increase in service tax.
Maintaining that poverty alleviation was a priority area, the chief minister said the Centre should expand the 13 parameters to 16 for deciding a BPL household in order to extend the benefits to a greater number of people living under the poverty line. “The Centre should ensure that adequate funds were earmarked and allocated to the state too carry out poverty alleviation schemes,” he said.
The Chief Minister, happy over the increased Plan size, expects full cooperation from the Centre. “Development in Bihar is taking place at a fast pace. If we continue to get the Centre’s support, we will soon be able to improve and strengthen basic facilities such as power, roads, water, education, and law and order. The budget proposals should focus on infrastructure, flood control, irrigation, roads and power,” he said.
“We want the policy of protected farming to be encouraged to boost the farm sector. States like Bihar, which have been deprived of the benefits, would certainly go in for a major economic overhaul,” Deputy Chief Minister Sushil Kumar Modi, who also holds the Finance portfolio, told Hindustan Times.
That apart, what is worrying the state government is the move to incorporate recommendations of the Sixth Pay Revision Committee. Accepting the recommendations of the committee would be a disaster for Bihar, where the estimated average pay of a government employee is Rs 1.77 lakh per annum. Of the total government staff, Bihar has 20 per cent fourth grade and 77 per cent third grade employees.
The industry sector wants a balance between the government’s revenue needs and its own wishlist. “Industry never wants taxes, but we cannot have zero tax regime,” said a Bihar Industries Association member who did not wish to be named. Besides, the industry also wants focus on food processing units and creation of dry ports for land-locked states.
“The Budget is being presented in the backdrop of current economic buoyancy and favourable expectations. We expect the Centre to gift Bihar with the special status this year,” said Dr Shaibal Gupta, Director of the Asian Development Research Institute.
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