Union Budget 2008-09 and Bihar

By D N Mishra

Mar. 1, 2008

Mr. P Chidambaram has presented his last budget for the present Lok-Sabha. Yet again he has played a trick upon the masses of the state. This budget can at best be termed as self-serving to Congress Party interest in its stronghold of Maharashtra, Andhra Pradesh & Tamil Nadu. A deep pick into this whole charade will indicate that most of the benefits will accrue to these three states. It could be as much as more than 50% share to these three states in the overall waiver. If the union government had distributed these Rs. 60,000 crores using the devolution formula of 12th finance commission that would have been more equitable to all the states of Indian Federation. It would have been better if against this amount so furnished, various states would have been made to write off the loan of farmers. If any shortfall that should have been taken out of states own revenues and surpluses, while surplus should have been left with the state experiencing lower debt stress. Better would have been if the states subsidized the interest on further borrowing to make farm loan available at as low as .5% interest, rather than waiving of the loans. This would have also taken care of Moral Hazard, as has been pointed out by CM Mr. Nitish Kumar in his reaction to the budget.

Another area where the bias against the state is quite evident is in renaming ‘Rashtriya Sam Vikas Yojana’ to ‘Backward Region Grant Fund’. By the very nomenclature it is humiliating to Bihar. And a special mention that 45% wil go to Bihar, Orissa & UP is like rubbing the salt on the wound. Furthermore there is no increase in allocation to Bihar ( it used to be Rs. 1000crores under RSVY). In fact, finance minister has given much more amount to TN be way of Desalination Plant, Funding of educational Institutions and through indirect means like NHDP roads ( over 3100 KM roads in TN as against 1608 Km in Bihar) etc. Moreover why central government should be entirely funding Sethusamundaram project is beyond any rational. Entire benefit of this project accrues to TN and as such does not serve the national strategic interest at all.

To make mockery of the entire exercise, Bihar has been witness to announcement of AIIMS like institute for over last five years and IIT for the last two years without actual implementation till date. Even this is being trumpeted as great favour to Bihar. This, when Bihar has hardly 5 such institution against over 35 such institutions in each of the states like TN, AP, Maharashtra, Karnataka & WB. Even a smaller state like Kerala has now more than 30 central academic and research institutions. Even after all this, it is amusing to find people in state celebrating the announcement of a mere IIT. Bihar must be given two IIIT (for hardware & design and for software, respectively), one Central University, one University of Excellence, one IISER and an IIM at the least. Bihar must be get all of these, if justice is to be done to the state.

Anyway Federal Administration should consider allocating the following institutions, which it is planning to announce in current financial year, to Bihar:

1. Department of Biotechnology:

”Efforts will be made to start the activities of other institutions in pipelines in the areas of stem cell biology, UNESCO regional centre, agri-food biotechnology, marine biotechnology and animal biotechnology.”

Note: state should stake claim to host UNESCO regional center at either Bodh Gaya or Nalanda and should try to have agri-food technology at Muzaffarpur & Stem Cell Biology Center at Patna.

2. Department of Higher Education - (Technical Education)

”A provision of Rs. 150 crore has been made for Indian Institute of Science Education and Research (IISER) which would take care of the requirement of the three IISER at Pune, Kolkata, and Mohali and two new ones to be started at Thiruvananthapuram (Kerala) and Bhopal (Madhya Pradesh). Apart from the provision for various ongoing schemes in the Technical Education sector, a provision of Rs.50 Crore has been made for setting up of three new IITs, Rs. 8 crore for setting up of new IIMs, Rs. 21.40 crore for setting up of new IIITs, Rs. 15 crore for two new schools of Planning and Architecture at Bhopal in Madhya Pradesh and Vijayawada in Andhra Pradesh, and a token provision of Rs. 1 crore for new National Institute of Technology.”

Note: state must be given the IISER, IIM & IIIT at least if not the SPA. Setting up of such institutions in Southern states (i.e. TN, AP, Karnataka& Kerala) , Maharashtra and West Bengal must be frozen right away as these states already have disproportionate number of such institutions.

3. Department of Information, Publicity and Broadcasting:

”Provision for Setting up of National Centre for Excellence in Animation, Gaming & Special Effects”

Note: Setting up of this last institution being an institution of great economic importance can give a great advantage to Bihar and will help create a modern entertainment industry of big potential in the state. Also I& B Ministry should consider setting up of a unit under International Media University (renamed IIMC) in Bihar.

Also, Integrated River Management Project has great significance for the state. Either this be taken up as a national project or state be a given substantial funding (over 90%) towards the same.

 

Comments:
Mishraji, none of the real important feature of a union budget has been granted to Bihar. Reason? Very simple! Our Bihari UPA MPs do not have the understanding of what could be the real benefit for Bihar. So, forget about it. The good news, Laluji has given several new trains to and from Bihar connecting to other part of India to help easy migration of Biharis from Bihar.

Most of the subsidy/benefits of this union budget will have minimum to none impact on today's situation of Bihar. Bihar is cursed with such political leaders who will never think of Bihar in smart way. Unhi Ke Bhasha Me - ee Ihar-Bihar ke pragati ke liye, Bheja fry Kaun Karwayega Bhaiyaa. MP-ministir baniye. Dilli Jayiye. Apane Baal Bachchon ko Videsh me Padhaiye. Wahi Dilli ke aas paas aik ashiyana banaiye. Jab phir election aayega to kuch kar denge Bihar ke Naam par. Okara baad pher se paanch saal ta Dilliye Me na rahana hai.

We Biharis are ourself responsible for today's Thuka-Thuki (humiliation) situations and if we do not wake up, the more such situations will follow through. - Narendra N. Singh - Mar. 5, 2008

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