Debate Over Special Category Status for Andhra Pradesh and Bihar Intensifies

The long-standing demand for special category status by Andhra Pradesh and Bihar has resurfaced. Former Niti Aayog Vice Chairman Rajiv Kumar advises careful consideration, noting fiscal implications. With the Centre funding most of the projects for such states, more demands could strain financial resources. Calls for Prime Minister's intervention persist.

The contentious issue of granting special category status to Andhra Pradesh and Bihar has once again gained momentum. Former Niti Aayog Vice Chairman Rajiv Kumar has urged the government to deliberate meticulously before making any decisions, emphasizing the potential precedent-setting and fiscal strain this could create.

Andhra Pradesh's plea stems from revenue losses following its 2014 bifurcation, leaving Hyderabad as the capital of Telangana. Similarly, Bihar's appeal dates back to 2005, when Chief Minister Nitish Kumar highlighted the state's financial setbacks due to the creation of Jharkhand in 2000.

For states recognized under this status, the Centre covers 90% of centrally sponsored scheme costs, unlike the 60% for normal states. Kumar cautions against hasty resolutions, warning of subsequent pressures as other states might follow suit. The Finance Commission previously adjusted states' tax shares, removing special category designations, yet calls for thorough review persist. Promises made during previous elections remain unfulfilled.

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