Bihar Chief Minister Nitish Kumar. File Photo
| Photo Credit: ANI

Giving importance to Chief Minister Nitish Kumar, a key alliance partner of the Narendra Modi government, Union Finance Minister Nirmala Sitharaman on July 23 announced to sanction ₹58,900 crore to Bihar in the 2024 Union Budget.

This includes ₹26,000 crore for road projects, a 2,400-MW power plant at a cost of ₹21,400 crore in Pirpainti and ₹11,500 crore for flood fighting.

The Janata Dal (United) leader called it a big gift to Bihar, a day after the Centre denied the Special Category Status (SCS) to the State. Opposition Rashtriya Janata Dal (RJD) termed it an eyewash.

“Since the beginning I have been saying that the Centre must give special help to Bihar and today they have made the announcement to help us in several developmental projects and schemes. Our motive was to get the benefit to the State from the Centre with additional help,” Mr. Kumar said.

Asked whether the demand for the SCS would remain alive, Mr. Kumar said, “We were seeking Special Category Status but it was closed long ago. So, for the development of Bihar, we wanted special help and now the Centre has started. You all should be happy that at least things have started rolling now.”

Mr. Kumar slammed the Opposition and said they criticised him unnecessarily.

Later, Mr. Kumar posted a message on X in which he welcomed the budget for Bihar.

“The budget presented by the Central government is positive and welcoming. In this budget, special attention has been paid to the needs of Bihar. Under this, special attention has been paid to human resource development and infrastructure development of Bihar. In this budget, special funds have been provided for road projects, power projects, airports and medical colleges to Bihar. Along with this, special assistance has been announced in the budget for the development of tourist places in Bihar. A big announcement has also been made in the budget to protect Bihar from floods,” Mr. Kumar posted on X.

He said, “Special thanks to the respected Prime Minister Narendra Modi ji and Finance Minister Nirmala Sitharaman ji for the special provision in the budget for Bihar. These announcements will help in the development of the State. It is hoped that in the future also the Central government will help in the development of Bihar in the same way for other needs.”

The Finance Minister announced road connectivity projects, including Patna-Purnia Expressway; Buxar-Bhagalpur Expressway; Bodh Gaya, Rajgir, Vaishali and Darbhanga spurs; and a two-lane bridge over river Ganga at Buxar.

Tourist destinations

The Central government will support comprehensive development of Vishnupad temple corridor and Mahabodhi temple corridor, as well as Nalanda, to develop them as tourist destinations.

Leader of the Opposition in Bihar Assembly Tejashwi Yadav called the Budget disappointing.

“Today’s budget has again disappointed the people of Bihar. A revival plan was needed to take Bihar on the path of progress for which a special package along with the Special Category Status is urgently needed. Calling the routine allocation and previously approved and allocated schemes as new gifts is an insult to Bihar. To stop migration, remove backwardness of the State and for better future of youth along with industries, we will not step back even an inch from our demand for the SCS,” Mr. Yadav posted on ‘X’.

Bihar Congress Legislature Party leader Shakeel Ahmad Khan said the Modi government had cheated the people of Bihar and there should not be any compromise less than the SCS.

Union Minister of State Anupriya Patel, Ramdas Athawale and JD(U) MP Dileshwar Kamait during the all-party meeting, at Parliament House in New Delhi on July 21, 2024.
| Photo Credit: ANI

The Janata Dal (United), a key BJP ally which heads the government in Bihar, has strongly argued for a special financial package for the State to be granted during the Budget Session of Parliament that begins from July 22, since the government has already ruled out the grant of special category status. The JD(U) made its demand at Sunday’s all-party meeting.

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However, the BJP’s other major ally, the Telugu Desam Party (TDP), which is in power in Andhra Pradesh remained ambivalent on the issue, only seeking financial support from the Centre on various “legacy” issues dogging the State.

According to sources, back-channel talks are on between the BJP and its allies on this issue. With Bihar going to the polls in a year, the JD(U) has told the BJP in no uncertain terms that Bihar must get significant financial aid from the Centre for the ruling National Democratic Alliance to have a fair shot in next year’s Assembly election.

Reciprocity expected

The JD(U) already made a concession for the BJP, climbing down from its long-standing demand for special category status only. A resolution was passed at the JD(U)‘s last national executive meeting in Delhi, stating that Bihar needs either a special category status or a special financial package. The JD(U) now expects a reciprocal gesture from the BJP.

It was JD(U) leader Sanjay Jha who raised the issue during the all-party meeting. “We reiterated our demand for special category status in the meeting. Our leader and Bihar Chief Minister Nitish Kumar has addressed public rallies from Gandhi Maidan to Ramlila ground on the issue. We also said that if on some technical grounds, they are unable to accord Bihar this status, they should grant a special package. We hope that in the upcoming Budget, the government will consider it,” Mr. Jha said.

Lok Janshakti Party (Ram Vilas) president and Union Minister Chirag Paswan also raised the same demand at the all-party meet.

YSRCP-TDP tussle

Unlike the JD(U), the TDP did not explicitly spell out its demand for “special category status” or a “special package” for Andhra Pradesh, but spoke at length on the precarious economic condition that the State finds itself in. The TDP’s equivocation on the issue gave a handle to its political rivals, the YSR Congress Party, which has framed special category status as the “only solution for the development of Andhra Pradesh.”

“We want enough time, so that all the financial issues concerning Andhra Pradesh can be placed in Parliament. It is not a question of this or that demand. There are several legacy issues. We will be presenting a white paper on the dire financial condition that the State finds itself in so that every political party understands our situation,” Lavu Sri Krishna Devarayalu, the TDP’s parliamentary party leader told The Hindu.

Slamming the TDP’s attitude, YSRCP leader Vijay Sai Reddy told journalists that he had raised the need for “special category status” for Andhra Pradesh during the all-party meet. “We have been demanding special category status. It is not a new demand; we have been raising it right from the day it was promised by then-Prime Minister Manmohan Singh in the Rajya Sabha. It is the only solution for the development of Andhra Pradesh. The TDP ignoring the issue and asking for an incentive or additional funds is not acceptable,” he said.

‘No more special category States’

The Biju Janata Dal also raised the demand for special category status for Odisha during the all-party meeting. BJD leader Sasmit Patra said that was a two-decade-old demand that Odisha has been continuously pleading for. The concept of a ‘special category status’ was introduced in 1969 by the Planning Commission during the Fourth Five-Year Plan. It extends tax incentives for investors and also increases the Centre’s financial share in all centrally sponsored schemes, considerably lightening the State government’s burden. However, consecutive Finance Commissions have ruled out extending the status to any States beyond those who already enjoy it.