The Union government has ruled out any plan to grant a special category status to Bihar, a key demand of its ally, the Janata Dal (United) (JDU). This decision has prompted the Rashtriya Janata Dal (RJD) to criticise JDU leader and Bihar Chief Minister Nitish Kumar.
JDU MP Ramprit Mandal from Jhanjharpur had inquired if the Finance Ministry had any plans to provide special status to Bihar and other economically backward states to promote growth and industrialization. In a written response, Minister of State for Finance Pankaj Chaudhary stated, “The case for Special Category Status for Bihar is not made out.”
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The Special Category Status, previously granted by the National Development Council (NDC) to states with challenging terrain, low population density, significant tribal populations, strategic locations, economic and infrastructural backwardness, and non-viable state finances, does not apply to Bihar based on existing criteria. An Inter-Ministerial Group (IMG) had also concluded in 2012 that Bihar did not meet these criteria.
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Special status ensures more central support for a backward state to expedite its growth, offering increased funding from the Union government and tax concessions.
While the Constitution does not provide for special status, it was introduced on the Fifth Finance Commission’s recommendations in 1969. States like Jammu and Kashmir (now a Union Territory), northeastern states, and hilly states such as Himachal Pradesh and Uttarakhand have received this status.
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Despite the Centre’s decision, JDU continues to push for this demand. JDU MP Sanjay Kumar Jha emphasized that securing special status for Bihar has been a long-standing priority for the party, with Chief Minister Nitish Kumar leading major rallies on the issue. In light of the Centre’s refusal, Jha mentioned that JDU has also demanded a special package for Bihar.
The RJD, Bihar’s main opposition party, criticized JDU in a post on X, saying, “Nitish Kumar and JDU leaders must enjoy the fruits of power at the Centre and continue their drama politics on special status.”
A government source highlighted that the concept of Special Category Status was first addressed in a 1969 National Development Council meeting, where the Gadgil Formula was introduced to allocate central assistance to state plans, prioritizing the needs of special category states. However, with the formation of NITI Aayog and the implementation of the 14th Finance Commission’s recommendations in 2014, Gadgil Formula-based grants were discontinued, and the devolution of the divisible pool to all states increased from 32% to 42%.
Currently, no additional states are being granted Special Category Status, as the Constitution does not provide for such categorization.
