Ahead of the Union Budget 2024, the Centre on Monday denied a special category status (SCS) to Bihar, a core demand by NDA’s key ally, the Janata Dal (United).

JD(U) MP from Khanjharpur Ramprit Mandal had asked the Finance Ministry if the government has planned to provide special status to Bihar and other most backward states to promote economic growth and industrialisation.

In response, Minister of State for Finance Pankaj Chaudhary said “case for Special Category Status for Bihar is not made out”.

Also Read: Budget 2024: JD(U), YSRCP demand special category status for Bihar, Andhra Pradesh at all-party meet

“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 a number of 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,” the reply stated. “Earlier, the request of Bihar for Special Category Status was considered by an Inter-Ministerial Group (IMG) which submitted its Report on 30th March, 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,” it added, NDTV reported.

This development comes just a day before the Union Budget 2024 is scheduled to be presented.

Lalu Prasad Yadav’s Rashtriya Janata Dal (RJD) took a potshot at the JD(U) over this development. “Bihar ko nahin milega Vishesh rajya ka darja (Bihar will not get special state status!)” a post by the RJD read.

Also Read: Nitish Kumar on the way to Delhi as NDA, INDIA bloc plan next move; Naidu to leave shortly

“Nitish Kumar and JDU can now comfortably enjoy power at the Centre and continue doing hypocritical politics on ‘special state status’!” the RJD posted on X.

What is a special status?

A special status ensures more central support to a backward state to expedite its growth. While the Constitution does not provide for a special status for any state, it was introduced on the recommendations of the Fifth Finance Commission in 1969. Among the states that have received a special status so far are Jammu and Kashmir (now a Union Territory), northeastern states and hill states such as Himachal Pradesh and Uttarakhand.

A state with a special category status gets more funding support from the Central in the Union government’s schemes and several concessions in taxes.