Centre Denies Special Status to Bihar

The Centre cited an inter-ministerial group report prepared in 2012 to assert that a case for granting special category status to Bihar was not made out. In a written reply in the Lok Sabha, MoS finance Pankaj Chaudhary said on Monday that the special category status for Plan assistance was granted in the past by the National Development Council to some states that were characterised by a number of features necessitating special consideration. These features included being hilly and difficult terrain, low population density or a sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of state finances.

“The decision was taken based on an integrated consideration of all the factors listed above and the peculiar situation of the state. Earlier, the request of Bihar for special category status was considered by an Inter-Ministerial Group (IMG) which submitted its report on March 30, 2012,” said Chaudhary. “The IMG came to the finding that based on existing NDC criteria, the case for special category status for Bihar is not made out,” added Chaudhary. The Congress-led UPA was in power at the time.

During the all-party meeting on Sunday called by the government ahead of the Budget Session, the JD(U) had once again sought a special status for Bihar. At the meeting, JD(U) leader Sanjay Kumar Jha had voiced his party’s demand for such status. The Lok Janshakti Party (Ram Vilas), also a BJP ally, and the Opposition RJD echoed the same demand at the meeting. The JD(U), though, has already conveyed to the Centre that it is willing to settle for a special financial package in case the status cannot be granted to the state.

The government has in the past also argued that the 14th Finance Commission report has ruled out the possibility of any more states being granted the status, which includes tax relief and higher Central funding for the beneficiary states.