The demands for special category status by Bihar and Andhra Pradesh, championed by their respective allies JD(U) and TDP, have been a constant feature in Indian politics. However, recent developments suggest these states might have to settle for alternative solutions. Let’s delve into the reasons why special status seems unlikely and explore potential alternatives.
The Allure of Special Status
Special category status, discontinued by the Centre, offered significant financial benefits. Under this scheme, the central government funded 90% of centrally sponsored schemes, compared to the usual 60% for other states. This meant more resources for infrastructure development, social welfare programs, and economic growth.
The Challenge of Recognition
There are several hurdles for Bihar and Andhra to achieve special status:
- Fear of a Domino Effect: Granting special status to these states could trigger similar demands from other economically stressed regions. The Centre might be wary of the financial burden of extending such benefits.
- Evolving Criteria: The concept of special category status has been replaced by a more nuanced approach that considers various socio-economic factors to determine resource allocation. Bihar and Andhra Pradesh might need to demonstrate a greater level of economic disadvantage under these new criteria.
- Alternative Solutions: The Centre might be more receptive to offering alternative packages that address specific needs. This could include special funding for infrastructure projects like Andhra Pradesh’s capital city Amaravati or increased central investment in social programs in Bihar.
What Lies Ahead
The Finance Commission is currently working on a revised formula for allocating resources to states. This new framework could potentially address the concerns of Bihar and Andhra Pradesh without resorting to the special category label.
While the dream of special status might remain elusive for Bihar and Andhra Pradesh, alternative solutions that focus on targeted resource allocation and development projects seem more likely. Negotiations and a data-driven approach hold the key to unlocking financial assistance for these states.
