Bihar has not fulfilled parameters needed for special status: MoS

Patna: Minister of State (MoS) for Finance Pankaj Chaudhary on Tuesday said that Bihar has not fulfilled the criteria required to come under special status category.

The MoS was responding to a question asked by Bihar MP and JD-U President regarding the the special status for Bihar.

“On the basis of Inter-Ministerial Group (IMG) report which was submitted on March 30, 2012, Bihar has not fulfilled the criteria required to come under special status category,” the MoS said in the written reply.

The MoS said that the special category status for plan assistance was granted in the past by the National Development Council (NDC) to some states that are characterised by a number of features necessitating special consideration.

“These features included hilly and different terrain, low population density and/or sizable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of state finance,” he said.

He said that the decision was taken based on an integrated consideration of all the factors listed above and the peculiar situation by an IMG which submitted its report on March 30, 2012.

“The IMG came to the conclusion that based on the existing NDC criteria, the case for Special Category Status for Bihar is not made out,” the MoS said.

He said that as per the 14th finance commission recommendation, the union government increased the share of net shareable taxes to the states from 32 per cent to 42 per cent for the period of 2015 to 2020.

“The 15th finance commission recommendation had also retained the same at 41 per cent and one percent adjusted on the account of the reorganisation of the state of Jammu and Kashmir for the period 2020 to 2026,” the MoS said.

He said that after the acceptance of 14th finance commission recommendation the state’s share in the divisible pool of central taxes has increased, providing for more fiscal space to the states for contextual needs.

He said that the Central government has given share in devolution of central taxes and duties to Bihar in 2016-17 was Rs 58,881 crore, Rs 65,083 in 2017-18, Rs 73,603 crore in 2018-19, Rs 63, 406 in 2019-20, Rs 59,861 crore in 2020-21, Rs 91,353 crore in 2021-22 and Rs 95,510 crore in 2022-23.

“The central government has also given Grant-in-aid to Bihar Rs 20559 crore in 2016-17, Rs 25,720 crore in 2017-18, Rs 24, 652 crore in 2018-19, Rs 26,969 crore in 2019-20, Rs 31,764 crore in 2020-21, Rs 28,606 crore in 2021-22 and Rs 58,001 crore in 2022-23,” the minister said.