On Monday, Janata Dal (United), a key ally of NDA with 12 Lok Sabha MPs got a big blow from the central government as it rejected the special status to Bihar. Nitish Kumar led the Bihar Government was demanding a special status for the state. Narendra Modi-led NDA government refused their demand quoting the Inter-Ministerial Group (IMG) report 2022.
Union `Minister of the State for Finance Pankaj Chaudhary stated in a written reply to Jhanjharpur Lok Sabha MP Ramprit Mandal, “The Special Category Status for plan assistance was granted in the past by the National Development Council (NDC) to some States that were characterized by numerous features necessitating special consideration. These features included (i) hilly and difficult terrain, (ii) low population density and/or sizeable share of tribal population, (iii) strategic location along borders with neighbouring countries, (iv) economic and infrastructural backwardness and (v) non-viable nature of State finances.”
What Is Special Status?
A state with a special status category gets more funding support from the Central government and also concessions in taxes. A special status for Bihar is JDU’s longstanding demand. Nitish Kumar had been pushing hardcore for this demand and also raised the demand at all-party meetings before the budget session.
However, the center made it clear that it had no plans to do so. Bihar’s main opposition RJD has hit out at the JDU saying “Nitish Kumar and JDU leaders must enjoy the fruits of power at the center and continue their drama politics on special status”.
The special category status concept was introduced by the fifth Finance Commission in 1969 recognising historical disadvantages of certain regions. So far, Jammu and Kashmir (now a Union Territory), as Northeastern and hilly states like Himachal Pradesh and Uttarakhand have received the special status.
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