The Chief Minister Nitish Kumar-led Cabinet has passed a resolution requesting special category status (SCS) for Bihar, following the “Bihar Caste-based Survey, 2022,” which revealed that nearly one-third of the state’s population remains in poverty.
The State Development Classification (SCS) was introduced in 1969 by the Centre to aid States with geographical or socio-economic disadvantages. It considers factors like hilly terrain, low population density, strategic location, economic and infrastructural backwardness, and non-viable state finances. In 1969, three states were granted the SCS, followed by eight more states by the National Development Council. The SCS was introduced on the recommendation of the Fifth Finance Commission.
What is a special category status?
The Center developed the SCS classification to aid in the development of states that experience socioeconomic and geographic disadvantages. The Fifth Finance Commission’s 1969 proposals led to this classification, which was carried out subsequently. The Constitution does not contain a provision for SCS. In 1969, Jammu and Kashmir, Assam, and Nagaland were granted status for the first time.
In the past, the National Development Council of the former Planning Commission approved SCS for plan assistance. So basically, States are granted special category status if they fulfill a number of requirements, such as having strategic border locations, hilly and difficult terrain, low per capita income, low population density, significant tribal populations, economic and infrastructure backwardness, and unviable state finances.
How the special category state, is beneficial?
States with special category status receive 90% of the funding needed for a centrally sponsored program from the Center, compared to 60% or 75% for other states; the state governments provide the remaining funds. The Fifth Finance Commission’s suggestions led to the introduction of the special category status in 1969, which benefited a number of economically and infrastructurally backward republics with hilly terrain, important international boundaries, and other disadvantages.
The largest-ever campaign was started by Bihar’s Chief Minister, Nitish Kumar, to obtain the state’s special category state designation.
Bihar’s chief minister, Nitish Kumar, declared that the state would begin its “biggest-ever campaign” to raise awareness of the government’s request for special category status. He used the state government’s choice to fund welfare programs and give financial support to low-income families as justification for the demand. Nitish added that these programs may be put into action over the next two years if Bihar is given special category status. Nitish residents protested the BJP’s recent event, which apparently drew only a few hundred people, with a rally that drew over two lakh attendees.
The cabinet of Nitish Kumar passed a resolution endorsing special status.
Chief Minister Nitish Kumar’s Bihar cabinet passed a resolution asking for the state to be placed under a special category. The government’s discovery of case services, which revealed a rise in the proportion of disadvantaged castes, encouraged this need. The percentages of OBCs, SCs, and STs have increased by 50% to 65%. The administration also intends to carry out a number of welfare initiatives, such as giving families financial support when they buy land. The government plans to finish these steps in five years, at an estimated cost of Rs 2.50 lakh crore. Nevertheless, the implementation can go more quickly if the state is given special category status.
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