Centre Reiterates No Special Status For Bihar, RJD Says Nitish Kumar Should Resign

The Centre on Monday reiterated its stand that Bihar will not be granted special category status. The Nitish Kumar-led JD(U), which is a key constituent of the Narendra Modi-led National Democratic Alliance, had recently passed a resolution demanding special category status, or a special package, for the state. Now, opposition parties like the RJD are taking potshots at chief minister Nitish Kumar while demanding his resignation.

The ‘special category’ status for plan assistance was granted in the past by the National Development Council (NDC) to some states characterised by a number of features necessitating special consideration. Citing an inter-ministerial group report prepared in 2012, the central government said a case for granting this status to Bihar is not made out based on existing factors.

“The decision was made based on an integrated consideration of all factors 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. The IMG came to the finding that based on existing NDC criteria, the case for special category status for Bihar is not made out,” Minister of state for finance, Pankaj Chaudhary told the Lok Sabha in a written reply in the Lok Sabha on the first day of the monsoon session.

In reply to a question asked by JD(U) member Rampreet Mandal, Chaudhary said the existing criteria include hilly and difficult terrain, low population density or sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of state finances. He added that the decision was taken based on an integrated consideration of all the factors listed above and the peculiar situation of a state.

In the past, however, the government has argued that the 14th Finance Commission report has ruled out the possibility of any more states being granted the special category status, which includes tax relief and higher central funding for the beneficiary states.

A day before the beginning of the session, in which finance minister Nirmala Sitharaman will present the Union budget on Tuesday (July 23), the JD(U), YSRCP and BJD demanded special category status for Bihar, Andhra Pradesh and Odisha, while the Jairam Ramesh of the Congress said “strangely, the TDP kept quiet on the matter”.

The demand for special category status for Bihar during an all-party meeting came from the ruling NDA as well as the opposition INDIA bloc, with BJP allies — Sanjay Kumar Jha of the JD (U) and Union minister Chirag Paswan of the LJP (Ram Vilas) — also batting for it. The RJD also joined the chorus. Jha, however, said a special financial package can also be an option if a special status is not possible.

‘Constitution doesn’t provide for such categorisation’

Senior BJP leader Amit Malviya said no additional states are being granted special category status, as the Constitution of India does not provide for such categorisation. He said the distinction between general and special category states was eliminated when the 14th Finance Commission came into in 2015, but a part in net shareable taxes for states was increased from 32 to 42 per cent for 2015-2020, he added.

“…The 15th Finance Commission maintained this rate at 41 per cent for the periods 2020-2021 and 2021-2026, with a 1 per cent 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 categorisation,” he said in a post on X, explaining the history behind the special category status and how the Gadgil Committee formula-based grants were discontinued after 2015.

Bihar Congress chief and MP Akhilesh Prasad Singh said, “Ever since Nitish Kumar became the CM, he has been raising the issue of Special Status for Bihar. If there is no such provision, amend the provisions. You are in power, why are you misleading the people? Government of India should take this decision at the earliest, in the interest of Bihar.”

Singh further responded to RJD chief Lalu Yadav’s call for Kumar’s resignation, stating, “We have been hearing this demand (for Special Status) since 2005, ever since he became the CM. He raises this issue in every meeting. It is going to be 20 years of his Chief Ministership. So, people of Bihar should not be cheated. This demand should be met at the earliest.”

Meanwhile, JD(U) MP Devesh Chandra Thakur remarked, “Demand for special status will be there in future also…How will the state develop and how we will get investment, these all need to be seen by the central government.”

(With inputs from agencies)