Shaibal Gupta / Indian Express
A decrease in the share of the divisible pool of taxes for Bihar from 10.92 per cent to 9.67 per cent is not merely a decrease, but a substantial reduction of more than one percentage point. The reasons for the decrease in allocation are surprising. Bihar received less allocation because, first, income distance (to capture Bihar’s historical disadvantage) was given less weightage; second, area was given higher weightage (penalising a densely populated state like Bihar); and third, assigning some weight to forest area (which is very low in the Gangetic plains). Finally, Bihar has been penalised for the state government’s financial prudency, which was maintained by severely constraining spending on health, education and the maintenance of infrastructure. more
A decrease in the share of the divisible pool of taxes for Bihar from 10.92 per cent to 9.67 per cent is not merely a decrease, but a substantial reduction of more than one percentage point. The reasons for the decrease in allocation are surprising. Bihar received less allocation because, first, income distance (to capture Bihar’s historical disadvantage) was given less weightage; second, area was given higher weightage (penalising a densely populated state like Bihar); and third, assigning some weight to forest area (which is very low in the Gangetic plains). Finally, Bihar has been penalised for the state government’s financial prudency, which was maintained by severely constraining spending on health, education and the maintenance of infrastructure. more
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