The Hemant Soren-led Jharkhand government has accused the central government of economic discrimination. The state government has announced plans to release a detailed financial report, which will include information on loans and grants received from the Centre. This report aims to highlight how Jharkhand has faced financial bias by comparing its financial allocations with those of neighboring states, exposing disparities in fund distribution.

During the Question Hour in the state assembly, Finance Minister-in-charge Sudivya Kumar claimed that Jharkhand has been denied its fair share of central taxes and grants. He accused the Centre of deliberately creating financial hurdles, which have slowed down the state’s development. He stated that the situation has become so difficult that the state government had to resort to legal action to recover its dues.

Advertisement

Despite these challenges, Kumar asserted that Jharkhand has maintained financial discipline. The state has consistently adhered to the Fiscal Responsibility and Budget Management (FRBM) Act and kept its borrowings within permissible limits. While states are allowed to borrow up to 3 per cent of their Gross State Domestic Product (GSDP), Jharkhand has kept its borrowing at 2.7 per cent . The government claims that, despite limited resources, development in the state has not come to a halt.

Between 2008-09 and 2013-14, Jharkhand received Rs 20,825.63 crore in loans from the Centre, which increased to Rs 42,956.46 crore between 2014-15 and 2018-19. In 2019-20, the state received Rs 9,593.12 crore in loans. However, Kumar alleged that some states receive special financial assistance due to political reasons, while Jharkhand is deliberately neglected.

The issue of pending mining tax dues was also raised in the assembly. In response to a question from JMM MLA Kalpana Soren, the finance minister revealed that the Centre owes Jharkhand more than Rs1.36 lakh crore. The matter is currently in the Supreme Court, with the next hearing scheduled for April 26. The Solicitor General has acknowledged the issue and indicated that steps will be taken to resolve it.

Congress MLA Pradeep Yadav questioned the government about financial disparities between Bihar and Jharkhand. According to 2023-24 records, Bihar received Rs 1.65 lakh crore in tax shares and grants, while Jharkhand received only Rs 46,000 crore. He urged the state government to assess the financial losses Jharkhand has suffered since the Modi government came to power in 2014.

The upcoming financial report is expected to provide a detailed analysis of how Jharkhand has been affected by alleged central neglect. The Hemant Soren government believes that if the state had received its fair share, its economic growth rate would have been much higher. By making the report public, the state aims to strengthen its demand for a fair share of financial resources.

If necessary, the state government is prepared to take legal action. With the political battle over financial allocations intensifying, this report could further escalate tensions between the state and central governments, potentially leading to a major political confrontation.