The Jharkhand Mukti Morcha (JMM)-led government in Jharkhand on Saturday accused the Union government of significantly reducing grants for several centrally sponsored schemes, claiming that this has negatively impacted the state's overall development.
Responding to a question raised by Congress MLA Pradip Yadav in the state assembly, Parliamentary Affairs Minister Sudivya Kumar announced that the state government would conduct a detailed study to assess the grants-in-aid and loans provided by the Centre and their impact on various government schemes.
This study would also examine the broader financial implications for Jharkhand’s economy and development programmes. During the assembly session, Poreyahat MLA Pradip Yadav specifically asked whether the Centre had cut grants for centrally sponsored schemes in the state over the past financial years.
In response, the government provided official figures, revealing that Jharkhand received ₹8,828.89 crore in central grants in 2022-23, ₹8,980.63 crore in 2023-24, and only ₹5,736.27 crore until January of the ongoing financial year 2024-25.
Minister Sudivya Kumar alleged that there has been a noticeable decline in central tax revenue and grants-in-aid allocated to Jharkhand. He accused the Union government of adopting a "step-motherly approach" towards the state, which, he claimed, has adversely affected its development and financial planning.
He further stated that a thorough evaluation would be conducted to analyze how the reduction in central grants has impacted the implementation of centrally sponsored schemes and the well-being of the people.
The government aims to quantify the effects of these financial cuts and determine the extent of challenges faced by various sectors due to the reduced funding.
During the discussion, MLA Pradip Yadav pointed out that neighbouring Bihar received ₹1.65 lakh crore in central taxes and grants in 2023-24, whereas Jharkhand was allocated only ₹46,000 crore during the same period.
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He demanded a comparative study to analyse the distribution of central grants among Jharkhand and its neighboring states to determine whether the state has been treated unfairly.
In response to these concerns, Minister Kumar assured the assembly that a comprehensive study would be undertaken to assess the central loans and grants provided to Jharkhand in comparison to its neighbouring states. He added that the findings of this assessment, including details of reductions in funds allocated to Jharkhand, would be made public to ensure transparency.
Gandey MLA Kalpana Soren, who is also the wife of Chief Minister Hemant Soren, sought further clarification on the loans Jharkhand has received from the Centre.
In response, Kumar provided a breakdown of central loans over different periods. According to the data, Jharkhand received ₹20,825 crore in loans between 2008-09 and 2013-14, ₹42,956 crore from 2014-15 to 2018-19, and ₹9,593 crore in 2019-20. Additionally, he stated that the state had received ₹2,002 crore in loans from the central government till January 2025.
Despite the financial constraints, Kumar asserted that Jharkhand has maintained one of the best financial management records in the country over the past six years.
However, he reiterated that the decline in central grants has placed a burden on the state’s economy, necessitating a detailed study to assess the long-term implications of reduced funding.
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