Bihar News: Bihar Chief Minister Nitish Kumar has received a big blow from the central government. Actually, a big update has come from Delhi on the demand of giving special state status to Bihar. During the budget session in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary has given a big statement on behalf of the central government. Actually, Pankaj Chaudhary, while answering on behalf of the central government in the Lok Sabha, said that it is not possible to give special state status to Bihar.
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The minister said that the provisions that are to be fulfilled for the status of a special state are not there in Bihar. For the past several years, there has been a demand for giving special state status to Bihar. Recently, on Sunday, during the all-party meeting in Delhi, JDU Rajya Sabha MP Sanjay Jha raised the demand for giving special state status or special package to Bihar. CM Nitish Kumar has also been demanding special state status for Bihar many times.
JDU said- this is the right of the people of Bihar
On Monday, before the general budget, JDU has once again demanded special state status and special assistance for Bihar. JDU’s chief spokesperson KC Tyagi said that the demand for special state status for Bihar is the voice of the people of Bihar.
JDU has sent a letter of authority, not a demand letter. We have said that Bihar must get special state status and special assistance. Let us tell you, the general budget of the new central government is going to be presented tomorrow.
JDU has been demanding special status for Bihar for a long time
Special state status for Bihar has been a long-standing demand of JDU. After BJP falling short of majority in this election and forming an alliance with JDU, TDP and other parties to achieve the magic figure, the Nitish Kumar-led party was expected to make a strong effort for its main demand. JDU had also raised this demand in the all-party meeting before the budget session.
JDU got this answer
Responding to this, Pankaj Chaudhary said, “Earlier, the National Development Council (NDC) had granted special category status for plan assistance to certain states which had several characteristics that required special attention. These characteristics included hilly and difficult terrain, low population density and/or large proportion of tribal population, strategic location on borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of state finances.”
He further said, “Earlier, Bihar’s request for special category status was considered by an Inter-Ministerial Group (IMG), which submitted its report on March 30, 2012. The IMG concluded that a case for special category status for Bihar was not made out on the basis of the existing NDC criteria.”
What is special status?
In fact, special status ensures more central assistance to a backward state to accelerate its development. Although special status is not provided for any state in the Constitution, it was introduced in 1969 on the recommendations of the Fifth Finance Commission. The states that have got special status so far include Jammu and Kashmir (now a union territory), northeastern states, hill states like Himachal Pradesh and Uttarakhand.
Other states are also demanding
Let us tell you, according to Article 275 of the Indian Constitution, there are provisions for giving special category state status to a state. At present, there are a total of 29 states and 7 union territories in the country, out of which 11 states have the status of special category state, but there are still five states including Bihar, Andhra Pradesh, Odisha which are demanding special state status.
Article 275 explains under which conditions a state can be given this special status. According to these provisions, this status can be given to those states where there are hilly or difficult geographical conditions, the state is of strategic importance in terms of international borders, per capita income is very low, population density is low or tribal majority population or there is economic and structural backwardness and lack of sources of revenue.
These provisions have to be fulfilled for a special state
1. The state lacks resources.
2. Per capita income is low.
3. There are adverse conditions for the state’s finances.
4. Economic and structural backwardness.
5. Large population of tribals.
6. Mountainous and difficult terrain.
7. Strategic importance of the state due to being adjacent to international borders.
8. Low population density.
Also Read:
Historical Overview: Special Category Status in India and Its Evolution
The Special Category Status issue was first addressed in the National Development Council (NDC) meeting in 1969. During this meeting, the D R Gadgil Committee introduced a formula to allocate Central Assistance for state plans in India. Prior to this, there was no specific formula for fund distribution to States, and grants were given on a scheme basis. 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.
Recognizing historical disadvantages faced by certain regions, the 5th Finance Commission introduced the concept of Special Category Status in 1969. This status provided preferential treatment to certain disadvantaged States, including Central assistance and tax breaks. The National Development Council had allocated Central Plan Assistance to these States based on this status.
Until the 2014-2015 fiscal year, the 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%.
The 14th Finance Commission, effective from 2015, eliminated the distinction between General Category and Special Category States in the horizontal distribution of shareable taxes. The share of net shareable taxes for States was increased from 32% to 42% for the period 2015-2020. The 15th Finance Commission maintained this rate at 41% for the periods 2020-2021 and 2021-2026, with a 1% adjustment due to the creation of the Union Territory of Jammu & Kashmir. This adjustment aimed to address the resource gap of each state through tax devolution, with Post-Devolution Revenue Deficit Grants provided where tax devolution alone could not cover the assessed gap.
Currently, no additional States are being granted Special Category Status, as the Constitution of India does not provide for such categorization.
