Patna: The Nitish Kumar-led Bihar government on Thursday reiterated its long-standing demand for special category status from the Centre, only to face an immediate rejection from the Sixteenth Finance Commission.
During a presentation before the commission’s delegation, led by chairman Arvind Panagariya, Bihar’s deputy chief minister and finance minister, Samrat Choudhary, pressed for the recognition of Bihar as a special category state, citing the state’s economic challenges. He referenced the Raghuram Rajan Committee Report of September 2013, which had identified Bihar among the 11 most backward states in the country. The report suggested that the central government provide additional financial assistance to these states to accelerate their development.
However, Panagariya later clarified in a press briefing that the Finance Commission does not have the jurisdiction to grant special category status. “The demand for special category status is part of the Bihar government’s memorandum… but this is not something that the Finance Commission can decide,” he said.
He pointed out that the special category status classification ceased to exist after the dissolution of the Planning Commission in 2015. “At present, no state has special category status. This distinction was previously managed by the Planning Commission, but it no longer exists under the current system,” he added.
Bihar has been demanding special category status from the Narendra Modi-led central government since 2015, a key political plank of Nitish Kumar’s JD(U). Despite repeated appeals, the Centre has not conceded to the request.
Apart from this demand, the Bihar government urged the Finance Commission to increase the states’ share in central taxes to at least 50%. Currently, Bihar receives about 41.5% of the central tax pool as financial assistance.
The state has also sought:
- Rs 24,206 crore to strengthen Panchayati Raj institutions,
- Rs 35,025 crore for urban development,
- Rs 1.79 lakh crore for financial assistance across various sectors, and
- Rs 703 crore for weather-adaptive agricultural practices.
