Special Category Status for Bihar: Key Points and Implications
| Category | Details |
|---|---|
| Why in News? | Bihar CM reiterated the demand for Special Category Status (SCS) before the 16th Finance Commission to enhance the state's tax revenue from the Centre. |
| Historical Challenges | - Industrial decline: Industries shifted to Jharkhand post-state division, exacerbating unemployment and economic issues. |
| Natural Calamities | - Floods in northern Bihar and droughts in the south disrupt agriculture and irrigation, impacting livelihoods and economic stability. |
| Infrastructure Issues | - Poor road networks, limited healthcare, and educational facilities hinder development. Bihar was categorized as "least developed" by the Raghuram Rajan Committee in 2013. |
| Poverty and Development | - Bihar has the highest multidimensional poverty rate (26.59% in 2022-23), higher than the national average (11.28%). Per capita GDP (₹60,000) is significantly lower than the national average (₹1,69,496). |
| SCS Introduction | - SCS aids geographically and socio-economically backward states. It was introduced in 1969 based on the Fifth Finance Commission recommendations. |
| States with SCS | - First granted to Jammu & Kashmir, Assam, and Nagaland in 1969. Latest state to receive SCS: Telangana. |
| SCS vs Special Status | - SCS focuses on economic and financial benefits, while special status provides enhanced legislative and political rights (e.g., Jammu & Kashmir under Article 370 before its abrogation). |
| Criteria for SCS | Based on Gadgil recommendations:<br>- Mountainous terrain<br>- Low population density/large tribal population<br>- Strategic border location<br>- Economic and infrastructural backwardness<br>- Unviable state finances. |
| Benefits of SCS | - 90% funding for centrally sponsored schemes (vs 60%-75% for others).<br>- Unspent funds do not lapse.<br>- Tax concessions (excise, customs, income, corporate tax).<br>- 30% of Centre's gross budget allocated. |