Central devolutions to Bihar in FY 2021-22 up by 52%

Central devolutions to Bihar during the last financial year (FY 2021-22) jumped by a whopping 52.60 per cent as compared to FY 2020-21 while the state’s internal tax revenue collection has been close to the set target, officials in the finance department said.

Central devolutions to Bihar during the last financial year (FY 2021-22) jumped by a whopping 52.60 per cent as compared to FY 2020-21 while the state’s internal tax revenue collection has been close to the set target, officials in the finance department said.

Former Bihar deputy chief minister Sushil Kumar Modi said higher devolutions to the state in the last financial year beyond the estimated target was a reflection of the improvement in economy of the country. (ANI)

The state received ₹91,352.62 crore from the union government as its share in central taxes during FY 2021-22, against the estimated ₹91,180 crore.

In FY 2020-21, central devolutions to Bihar was only ₹59,861.41 crore.

“The huge rise in tax collections by the Centre has helped in higher central devolutions this time. This is a big boost for the state economy and will help fundi state and central schemes,” said a senior finance department official.

On internal revenue collection from tax and non-tax sources, Bihar’s performance has been relatively good as compared to FY 2020-21. As per officials, the state has collected ₹38,780 crore as against the target of ₹40,555 crore in FY 2021-22, which is ₹2,238 crore higher than ₹36,542 crore in FY 2020-21.

The major contributor has been commercial taxes, which has earned the state ₹26,900 crore, followed by registration department ( ₹5,215 crore) and transport department ( ₹2,470 crore).

In non-tax resources, ₹1,910 crore has come from mines and ₹2,000 crore from other sources .

The state received ₹9,000 crore additionally as GST compensation devolved from the Centre in last FY 2021-22, which is counted as grants. Officials said GST compensation also forms a part of internal revenue in overall terms, but it comes in form of grants separate from state’s collection of revenue.

Bihar’s former deputy chief minister Sushil Kumar Modi, who is currently a Rajya Sabha member from BJP, said higher devolutions to the state in the last financial year beyond the estimated target was a reflection of the improvement in economy of the country, after tackling Covid-related challenges. Modi has been the state’s finance minister for a number of years.