An inter-ministerial group (IMG), appointed by Prime Minister Manmohan Singh to look into Bihar’s demand for the special category status, has rejected the proposal. Irked by the rejection, Bihar chief minister Nitish Kumar insisted that Centre should constitute a fresh committee of experts to look into the demand and if need be change the criteria for according special category status to states.
The committee in its report, a copy of which is with this newspaper, has said that Bihar’s case for “special category status is not made out on the basis of five specified characteristics for providing such a facility”. The report, which has been submitted to the Prime Minister, also made it clear that fiscal concessions “are not linked” to special category status.
Even as the report conceded that Bihar has a “moral case” to give it the special category status” on the basis of its existing socio-economic parameter, the report said, “The IMG has looked into all the issues raised in the memorandum submitted by the state. The main issue is the request for grant of special category status to Bihar. The IMG discussed the issue in detail in the context of the five criteria fixed for according such a status. But the IMG comes to a finding that Bihar’s case is not made out.” It further said, “The issue of fiscal concessions is not linked to the special category status.” Incidentally, special category status to states allows them to take benefit of a range of fiscal concessions, which include tax breaks for indirect taxes of the Centre (excise duties) and direct taxes (waiver of personal income tax and corporate tax).
However, talking to reporters in Patna before leaving for New Delhi, the chief minister said, “We are making a just demand and it should be considered by the new expert committee.”
Slamming the Centre for rejecting the demand, Mr Kumar suggested that if the state does not meet the present conditions for availing such a status, the Centre should also “consider framing new criteria” for conceding the demand.