New Delhi, India – The Nitish Kumar-led JD(U), a key constituent of the Narendra Modi-led National Democratic Alliance (NDA), had recently passed a resolution demanding special category status or a special package for Bihar. However, on Monday, the Centre reiterated its stand that Bihar will not be granted this status, citing a 2012 inter-ministerial group report that found no basis for the designation based on existing factors.
In response to this decision, opposition parties, including the RJD, have demanded Chief Minister Nitish Kumar’s resignation. The ‘special category’ status was previously granted by the National Development Council (NDC) to states requiring special consideration due to unique challenges such as difficult terrain, low population density, or economic and infrastructural backwardness.
Minister of State for Finance, Pankaj Chaudhary, emphasized that the 2012 inter-ministerial group report concluded Bihar did not meet the criteria for special category status. These criteria include hilly terrain, low population density, significant tribal population, strategic location, and non-viable state finances.
Additionally, the 14th Finance Commission’s report, which became effective in 2015, ruled out the possibility of granting special category status to any more states, increasing states’ share of net shareable taxes from 32% to 42%. This was maintained by the 15th Finance Commission at 41% for the periods 2020-2021 and 2021-2026.
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During an all-party meeting before the session where Finance Minister Nirmala Sitharaman is set to present the Union budget, both ruling and opposition parties demanded special category status for Bihar, Andhra Pradesh, and Odisha. Despite these demands, senior BJP leader Amit Malviya stated that no additional states are being granted special category status as the Constitution does not provide for such categorization.
Bihar Congress chief Akhilesh Prasad Singh criticized Nitish Kumar for continuously raising the issue of special status since he became Chief Minister in 2005, urging the government to amend provisions if necessary. JD(U) MP Devesh Chandra Thakur also remarked that the demand for special status will persist in the future, emphasizing the need for the central government to support the state’s development and investment needs.