The central government has denied granting “special category” status to Bihar.

What Happened: Pankaj Chaudhary, the Minister of State for Finance said during the monsoon session of the parliament that such a status cannot be granted to Bihar.

Ramprit Mandal, Janata Dal (United) (JDU) MP from Bihar’s Jhanjharpur, inquired with the Finance Ministry about any plans to grant special status to Bihar and other highly backward states to boost economic growth and industrialisation.

The YSR Congress Party (YSRCP) and Biju Janata Dal (BJD) had also reportedly demanded special category status for Andhra Pradesh and Odisha respectively, at an all-party meeting last week.

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Chaudhary mentioned that the Special Category Status for plan assistance had previously been awarded by the National Development Council (NDC) to certain states with unique characteristics requiring special attention. These included hilly and challenging terrain, low population density and/or a significant tribal population, as well as economic and infrastructural backwardness, among other factors. Based on the criteria, the Inter-Ministerial Group found that a “special category” status for Bihar is not justified, Chaudhary added.

A special category status ensures more central government support to a backward state to expedite its growth. A state with such status also gets more funding support from the Central in the Union government’s schemes and several concessions in taxes.

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