Bihar's Demand for Special Category Status (SCS) PDF

Bihar’s demand for Special Category Status (SCS) insightsonindia.com/2023/11/28/bihars-demand-for-special-category-status-scs/ InsightsIAS November 28, 2023 GS Paper 2 Syllabus: Indian polity- Issues and challenges per...

Bihar’s demand for Special Category Status (SCS) insightsonindia.com/2023/11/28/bihars-demand-for-special-category-status-scs/ InsightsIAS November 28, 2023 GS Paper 2 Syllabus: Indian polity- Issues and challenges pertaining to the federal structure. Source: TH Context: Bihar Chief Minister Nitish Kumar’s Cabinet passed a resolution seeking Special Category Status (SCS) for Bihar, following findings from the “Bihar Caste-based Survey, 2022,” indicating significant poverty. What is Special Category Status (SCS)? It is a special recognition that functions as a provision for the betterment and protection of the people of backward regions. It is a classification given by the Centre to assist in the development of those states that face geographical and socio-economic disadvantages. Special Category Status: It was introduced in 1969 on the recommendations of the Fifth Finance Commission. Status was first accorded to Jammu and Kashmir, Assam and Nagaland in 1969 Articles 371 to 371-J in Part XXI of the constitution contain special provisions for twelve states namely Maharashtra, Gujarat, Nagaland, Assam, Manipur, Andhra Pradesh, Telangana, Sikkim, Mizoram, Arunachal Pradesh, Goa and Karnataka. Telangana, the newest State of India, was accorded the status as it was carved out of another State – Andhra Pradesh Criteria for SCS (considered before granting): Hilly and difficult terrain. Low population density or a sizeable share of tribal population. Strategic location along international borders. Economic and infrastructural backwardness. Non-viable nature of state finances. Difference between Special Status VS Special Category Status: Aspect Special Status Special Category Status 1/4  Granting Provided through an Act Granted by the National Development Authority Council, an administrative body of the government. Example Jammu and Kashmir enjoyed North-East states enjoy special special status under Article 370 category status before 2019 Applicability Special status is subject to Special category status is typically constitutional provisions, and not enshrined in the constitution, it can be altered or revoked making it less rigid and more subject through constitutional to administrative decisions. amendments. Provisions for Applicable to states listed under Primarily applicable to states facing States specific Articles such as Articles geographical or socio-economic 371, 371-A to 371-H, and 371-J. disadvantages, based on criteria set by the National Development Council. Focus of Empowers legislative and Primarily deals with economic, Empowerment political rights. administrative, and financial aspects, offering fiscal benefits and assistance in development projects. Benefits associated with the Special Category Status: Centre’s support: Under this status, the government pays 90% of the funds in schemes that the Centre sponsors. Regular states get 60-75% of the funds from the Centre under the same schemes and they have to manage the rest. In case of unspent money, the states with SCS have the provision to carry it forward. These states also enjoy a significant concession on excise, customs duties, income tax, and corporate tax. Objectives met: The recognition essentially benefits certain backward states having hilly terrains, strategic international borders, and economic and infrastructural backwardness. The key objectives are: To meet the aspirations of the people of backward regions of the states To protect the cultural and economic interests of the tribal people of the states To deal with the disturbed law and order condition in some parts of the states To protect the interests of the local people of the states 2/4 Why Bihar is Demanding SCS: Factors Details Economic About one-third of Bihar’s population lives in poverty. The state has Backwardness a low per-capita GDP of around ₹54,000, marking it as one of India’s poorest states. Impact of Bihar’s bifurcation led to industrial decline, with many industries Bifurcation moving to Jharkhand, resulting in fewer employment opportunities. Natural The state faces regular floods in the north and droughts in the south, Challenges impacting agriculture and livelihoods. Need for Bihar’s Chief Minister highlighted the need for SCS to secure Welfare approximately ₹2.5 lakh crore for various welfare measures over five Funding years. Lack of Bihar argues its lack of natural resources and continuous water supply Resources for irrigation contributes to its underdevelopment. Other States’ States like Andhra Pradesh and Odisha also want SCS. Andhra Demands Pradesh cites revenue loss after bifurcation, and Odisha points to natural disasters and a large tribal population (nearly 22%). However, the Central government, referring to the 14th FC report, has consistently rejected their requests, stating that no state should receive this status. Is Bihar’s Demand Justified? Criteria Met: Bihar meets most SCS criteria, but lacks hilly terrain and geographically difficult areas, crucial for infrastructural development. Raghuram Rajan Committee (2013): Placed Bihar in the “least developed category” and suggested a new methodology based on a ‘multi-dimensional index’ for fund allocation, which can be revisited for addressing socio-economic backwardness. Concerns The SCS puts an additional economic burden when the increased devolutionis already flowing to the State as recommended by the FFC. It affects the central state’s financial relations and hinders competitive federalism among the states. Conclusion: Bihar, despite meeting most criteria, lacks hilly terrain, raising the need for revisiting standards. Also, Raghuram Rajan Committee suggested exploring alternative funding models based on a multi-dimensional index. Addressing Bihar’s needs requires urgent 3/4 support for poverty alleviation, targeted aid for disaster management and agriculture, and policies to attract industries and generate employment. Providing SCS status can be one of the solution, however, it needs to be explored without straining central finances and upholding competitive federalism. Insta Links: Special Provisions to some states 4/4