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Special category status 101


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Special category status 101

  2. 2. 3 POINTS ON SPECIAL CATEGORY STATUS• ‘Special Category’ classification is given to assist development of those states that face geographical and socio-economic disadvantages like hilly terrains, strategic international borders, economic and infrastructural backwardness and non-viable state finances.• Central Government offers preferential treatment in central schemes to such states to enable them develop at par with rest of the country.• Tax benefits incentivize investors to set up industries in state leading to more employment, higher production and increased revenue. And, preferential central assistance helps in building state infrastructure. As a result, special category state gets to bridge its development deficit.
  3. 3. 3 REASONS WHY BIHAR IS POOR• Neglect (economy, infrastructure, institutions) and bad policies (Permanent Settlement) imposed by British until Independence• Unfair Central Policies (Freight Equalization), infrastructural and institutional neglect by successive central governments and a system of central fund transfers biased against poor states• Combination of intrinsic factors – floods, droughts, low industrial and trade base, disproportionate resource losses due to bifurcation
  4. 4. 3 WAYS SPECIAL CATEGORY WILL HELP BIHARTax Incentives will generate rapid and large scale private investments. This willcreate large number of skilled and unskilled jobs. It will also develop small andmedium scale enterprises which will support the big enterprises that are set up.Centre will give 90% grants in all centrally-sponsored schemes. This createsgreater headroom for the state Government to spend on welfare anddevelopment schemes.Industrialization and availability of funds will drive the development of publicinfrastructure which is essential for sustained economic growth.
  5. 5. 5 POINTS ON CAMPAIGN FOR SPECIAL CATEGORY STATUS1. Led and scripted by Chief Minister of Bihar Shri Nitish Kumar from 2005 - 20132. Dec 2005: Nitish demands Special Category Status for Bihar to liberate the state from severe poverty and infrastructural backwardness3. 2005 – 2010: Special Category Status is central demand in administrative communication between the Chief Minister and Central Government. Both Houses in Bihar (Legislative Assemble and Council) support unanimously. Central Government ignores or rejects the demand every time.4. 2010 – 2013: Nitish takes the issue to the People of Bihar who show strong support through unprecedented Signature Campaigns and Adhikar Rally. Finance Minister agrees in his Budget 2013 address to review the criteria for Special Category Status giving a big boost to aspiration of Nitish Kumar and People of Bihar.5. 17 Mar 2013: Shri Nitish Kumar to address the nation on the rights of Backward States and Demand of Special Category Status for Bihar
  6. 6. 3 POINTS ON RallyForBihar• Open platform to support campaigns for development of Bihar• “Demand for Special Category Status for Bihar” is the first such campaign supported by the RallyforBihar Platform• RallyforBihar is running an awareness campaign to inform people especially the youth on the issue of Special Category Status for Bihar