Special Status for Bihar : In a significant development, the central government has ruled out any plan to grant special category status to Bihar. This decision has stirred the political landscape, especially among Bihar’s key political players. The Rashtriya Janata Dal (RJD) has seized this opportunity to criticize Chief Minister Nitish Kumar and his party, Janata Dal (United) or JDU.
Centre Shuts Down Bihar’s Special Status Dream – See How RJD Reacts!
The Query and Official Response
Ramprit Mandal, a JDU MP from Bihar’s Jhanjharpur, posed a question to the Finance Ministry regarding the possibility of providing special status to Bihar and other backward states to promote economic growth and industrialization. In a written response, Minister of State for Finance Pankaj Chaudhary stated:
“The case for Special Category Status for Bihar is not made out.”
Chaudhary elaborated that special category status for plan assistance had been historically granted by the National Development Council (NDC) to states characterized by specific features necessitating special consideration. These features included:
- Hilly and difficult terrain
- Low population density and/or a sizeable share of tribal population
- Strategic location along borders with neighboring countries
- Economic and infrastructural backwardness
- Non-viable nature of state finances
He further mentioned that an Inter-Ministerial Group (IMG) had reviewed Bihar’s request for special status and concluded in its 2012 report that Bihar did not meet the necessary criteria.
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The Implications of Special Status
Special category status would ensure more central support to a backward state, expediting its growth. While the Indian Constitution does not explicitly provide for such a status, it was introduced based on the Fifth Finance Commission’s recommendations in 1969. States that have received this status include Jammu and Kashmir (now a Union Territory), Northeastern states, and hill states such as Himachal Pradesh and Uttarakhand.
States with special category status receive more funding support from the Union government’s schemes and various tax concessions.
JDU’s Long-standing Demand
The JDU has long demanded special status for Bihar. Given the BJP’s shortfall in securing a majority in the recent elections and its alliance with JDU and other parties, there were expectations that the Nitish Kumar-led party would push hard for this core demand. JDU also raised this demand at an all-party meeting before the budget session.
JDU MP Sanjay Kumar Jha reiterated that the demand for special status has always been a priority for their party. He stated, “Bihar should get the status of a special state, this has been the demand of our party since the beginning. Chief Minister Nitish Kumar has held big rallies for this demand. If the government feels that there is a problem in doing this, then we have demanded a special package for Bihar,” according to a PTI report.
RJD’s Reaction
With the Centre’s decision against granting special status, Bihar’s main opposition party, RJD, has lashed out at the JDU. “Nitish Kumar and JDU leaders must enjoy the fruits of power at the Centre and continue their drama politics on special status,” RJD said in a post on X (formerly Twitter).
Historical Context of Special Category Status
A source in the government provided historical context, stating that the Special Category Status issue was first addressed in the National Development Council meeting in 1969. During this meeting, the D R Gadgil Committee introduced a formula to allocate Central Assistance for state plans in India. The Gadgil Formula, approved by the NDC, prioritized special category states such as Assam, Jammu & Kashmir, and Nagaland, ensuring their needs were addressed first from the pool of Central assistance.
The concept of Special Category status was introduced by the 5th Finance Commission in 1969, recognizing the historical disadvantages of certain regions.
Recent Changes and Current Status
Until the 2014-2015 fiscal year, 11 states with Special Category Status benefited from various advantages and incentives. However, following the dissolution of the Planning Commission and the formation of the NITI Aayog in 2014, the recommendations of the 14th Finance Commission were implemented, leading to the discontinuation of Gadgil Formula-based grants. Instead, the devolution from the divisible pool to all states was increased from 32% to 42%.
Currently, no additional states are being granted Special Category Status as the Constitution does not provide for such categorization, confirmed a government source.
Conclusion
The Centre’s refusal to grant special status to Bihar has sparked political tensions and criticism from opposition parties. While the JDU continues to advocate for special status or a special package for Bihar, the RJD has capitalized on the Centre’s decision to criticize Nitish Kumar’s leadership and alliance with the BJP. As the political dynamics evolve, the demand for special status remains a contentious issue in Bihar’s quest for economic growth and development.
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FAQs: Centre Rules Out Special Status For Bihar
- What is the special category status?
- Special category status is a classification given to states in India that face significant challenges like economic and infrastructural backwardness, hilly and difficult terrain, low population density, or strategic location along borders with neighboring countries. This status ensures more central support to expedite the state’s growth.
- Why was Bihar seeking special category status?
- Bihar was seeking special category status to promote economic growth and industrialization, addressing its economic and infrastructural backwardness.
- Who inquired about the special category status for Bihar?
- Ramprit Mandal, JDU MP from Bihar’s Jhanjharpur, inquired about the special category status for Bihar.
- What was the Centre’s response to the request for Bihar’s special status?
- The Centre, through Minister of State for Finance Pankaj Chaudhary, responded that the case for special category status for Bihar is not made out based on existing criteria.
- What are the criteria for granting special category status?
- The criteria include hilly and difficult terrain, low population density, a sizeable share of the tribal population, strategic location along borders, economic and infrastructural backwardness, and non-viable state finances.
- Has Bihar’s request for special category status been evaluated before?
- Yes, Bihar’s request was evaluated by an Inter-Ministerial Group (IMG) in 2012, which concluded that Bihar did not meet the criteria for special category status.
- What advantages do states with special category status receive?
- States with special category status receive more funding support from the central government for various schemes and several tax concessions.
- Which states currently have special category status?
- States with special category status include northeastern states, Jammu and Kashmir (now a Union Territory), Himachal Pradesh, and Uttarakhand.
- What was the historical basis for introducing special category status?
- The special category status was introduced on the recommendations of the Fifth Finance Commission in 1969 to address historical disadvantages faced by certain regions.
- What is the Rashtriya Janata Dal’s (RJD) reaction to the Centre’s decision?
- The RJD criticized the JDU and Chief Minister Nitish Kumar, accusing them of enjoying the benefits of power at the Centre while engaging in “drama politics” over special status.
- Did the JDU raise the demand for special status recently?
- Yes, the JDU raised the demand for special status at an all-party meeting before the budget session.
- What alternative has the JDU suggested if special status cannot be granted?
- The JDU has suggested a special package for Bihar if granting special category status is not feasible.
- Who is the Chief Minister of Bihar?
- Nitish Kumar is the Chief Minister of Bihar.
- What is the Gadgil Formula?
- The Gadgil Formula, introduced in 1969, was a formula for allocating central assistance for state plans in India, prioritizing special category states.
- How has the funding mechanism changed since 2014-2015?
- After the formation of NITI Aayog in 2014 and the recommendations of the 14th Finance Commission, Gadgil Formula-based grants were discontinued, and the devolution from the divisible pool to all states was increased from 32% to 42%.
- What is the role of the National Development Council (NDC) in special category status?
- The NDC played a key role in granting special category status to states by considering various economic and strategic criteria.
- Why does the Constitution not provide for special category status?
- The Constitution does not explicitly provide for special category status; it was a classification introduced by policy decisions and recommendations from various commissions.
- What is the significance of special category status for a state’s development?
- Special category status helps a state receive additional central assistance and tax concessions, boosting its economic development and addressing infrastructure deficiencies.
- What was the outcome of the 2012 Inter-Ministerial Group (IMG) report on Bihar?
- The 2012 IMG report concluded that Bihar did not meet the criteria for special category status based on existing NDC guidelines.
- What is the political implication of the Centre’s decision on Bihar’s special status?
- The decision has led to political friction between the JDU, its ally BJP, and the opposition RJD, with significant criticism directed at Chief Minister Nitish Kumar and the ruling coalition.
