NDA-JDU Relations Ahead: Centre Rejected Bihar’s bid for Special Category Status

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Nitish Kumar, Bihar’s Chief Minister, continues his relentless campaign for special category status. Despite recent setbacks, Nitish remains determined to secure this designation, which he sees as vital for Bihar’s progress.

Central Government’s Position

On Monday, the Centre dealt a blow to Nitish’s aspirations by rejecting Bihar’s bid for special category status. This decision came even after the National Democratic Alliance (NDA) ally’s repeated requests following the Lok Sabha Election results.

Pankaj Chaudhary, Minister of State for Finance, clarified the government’s stance in a Lok Sabha reply. He explained that special category status was previously granted by the National Development Council (NDC) based on specific criteria.

Nitish’s Perspective

Nitish has been advocating for special status since Jharkhand’s separation from Bihar in 2000. He argues that Bihar’s unique challenges warrant this consideration.

Key points supporting Nitish’s demand:

– Bihar’s low per-capita GDP of about Rs 54,000
– The state’s ranking as India’s poorest according to the Centre’s Multi-dimensional Poverty Index
– Approximately 52% of Bihar’s population lacks proper access to basic necessities

Historical Context

The concept of Special Category Status emerged in 1969 during a National Development Council meeting. It aimed to provide extra support to disadvantaged states through increased central assistance and tax breaks.

Policy Changes and Current Scenario

The 14th Finance Commission’s recommendations in 2015 led to significant changes:
– Removal of distinctions between General and Special Category States
– Increase in states’ share of net shareable taxes from 32% to 42%

Currently, no new states are being granted Special Category Status, as the Indian Constitution doesn’t provide for such categorization.

Nitish’s Ongoing Efforts

Despite obstacles, Nitish persists in his advocacy for Bihar’s special status. He highlights the state’s unique challenges and potential benefits:
– Additional funding of about Rs 2.5 lakh crore for welfare measures
– Improved infrastructure and economic growth
– Enhanced support for Bihar’s 94 lakh poor families

Why Bihar Needs Special Status: Nitish’s Argument

1. Historical disadvantage: The separation of mineral-rich Jharkhand in 2000 left Bihar economically vulnerable.

2. High poverty rates: Bihar consistently ranks among India’s poorest states, with widespread poverty and underdevelopment.

3. Infrastructure gaps: The state lags in critical infrastructure, hindering economic growth and job creation.

4. Limited resources: Bihar’s current financial situation makes it challenging to fund large-scale development projects.

5. Population pressure: A high population density strains existing resources and services.

Opposition’s Stance

The Rashtriya Janata Dal (RJD) supports Nitish’s demand. RJD leader Manoj Kumar Jha stated that Bihar seeks both special category status and a special package. He emphasized that this demand has persisted since Bihar’s division.

Reasons for Rejection

The Centre cited several factors for denying Bihar’s request:

1. Existing criteria: Bihar doesn’t meet all the established NDC criteria for special status.

2. Previous assessments: An Inter-Ministerial Group in 2012 concluded that Bihar didn’t qualify based on NDC criteria.

3. Policy changes: The 14th Finance Commission’s recommendations altered the framework for state categorization.

4. Constitutional limitations: The Indian Constitution doesn’t explicitly provide for special category status.

The Road Ahead for Nitish and Bihar

While the central government maintains its position, Nitish’s determination remains unshaken. His quest for special category status highlights the complex interplay between state aspirations and national policy considerations. As Bihar grapples with economic challenges, Nitish’s advocacy underscores the ongoing debate about equitable development across India’s diverse states.

Nitish faces a challenging path ahead. He must balance his alliance commitments with his state’s developmental needs. The coming months may see Nitish exploring alternative strategies to secure additional support for Bihar, even as he continues to press for special status.

Conclusion

Nitish Kumar’s campaign for Bihar’s special status represents a critical juncture in the state’s development journey. While the immediate prospects seem dim, Nitish’s persistence reflects the urgency of addressing Bihar’s developmental challenges. As the debate continues, finding innovative solutions to support Bihar’s growth while maintaining national policy consistency remains a key challenge for both state and central leadership.

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