Raghuram Rajan panel report will help Bihar get more funds: CM

Patna, Sept 26: Expressing happiness over the Raghu Rajan report, which categorised Bihar as one of the least developed states in the country, Chief Minister Nitish Kumar today said it will pave the way for getting more funds from the Centre for development.

He was speaking after release of a report of a panel headed by then Chief Economic Advisor Raghuram Rajan, now RBI Governor.

The report has made a case for ending the 'special category' criteria for providing additional assistance to poorer states, as it ranked Goa and Kerala as the most advanced state and Odisha and Bihar the least.

The Bihar Chief Minister had been demanding special status for the state for long. Terming the development as a victory for Bihar, he said, "We knew it (that Bihar is backward and needs special attention)...We welcome Rajan's report and this will benefit other states as well.

"We would have been more happy had the report taken Per Capita Income instead of Per Capita Consumption as the criteria. Nevertheless, we are content with the current development."

Kumar said other states would also benefit from the new methodology for devolving funds based on Multi Dimensional Index (MDI). "Of the 10 states, three have already been given the special status. Apart from Bihar, there are 6 more states which will benefited," he said.

On the future course of action, he said, "Our next step will be to work for getting more funds for development of states."

PTI