Patna: Bihar Chief Minister Nitish Kumar's JDU, on which the BJP is largely dependent after losing majority in the Lok Sabha, has reiterated its demand for special category status (SCS) for the state.

Giving SCS to Bihar has been a long pending demand of JDU supremo. The Bihar cabinet headed by Kumar had passed a resolution last year requesting the Center to grant SCS to the state.

The Center had earlier said it would not consider any state's demand for "special category status" in view of the 14th Finance Commission's recommendation. SCS was introduced in 1969 to benefit some backward states having hilly terrain, strategic international borders and economic and infrastructural backwardness.With 12 MPs, JDU is BJP's second largest ally in the NDA after Telugu Desam Party's 16 MPs. The support of allies like JD(U) and TDP is crucial for the BJP to form the government at the Center as the saffron party could not reach the majority mark on its own in the Lok Sabha elections.

Speaking to reporters on Wednesday, senior JDU leader and Bihar minister Vijay Kumar Chaudhary said, "JD(U) is part of the NDA and will remain with it. But JDU has some demands." The financial condition and economy of Bihar should be catered to by the Centre.Our demand for special category status for Bihar is completely justified and we stand firm on our demand for SCS for Bihar.

Justifying the Bihar government's demand for SCS, state Parliamentary Affairs Minister Chaudhary (who previously held the finance portfolio) said on Thursday, "The Bihar government has been demanding SCS for the state since 2011-12. Earlier, A resolution was passed in this regard." According to both houses of the Bihar Legislature, Bihar is the most deserving state in need of special financial assistance from the Centre.,

NITI Aayog had earlier acknowledged that Bihar has made 'tremendous progress' in many sectors in the last decade, but due to its weak base in the past, the state may take some more time to catch up with others and reach optimal growth . .So we are seeking special assistance from the Center on all aspects,” Choudhary said.

Bihar's economy is one of the fastest growing economies in India, he said, adding that the state has not only grown steadily but has also outperformed the most developed states. “We need a special package for the overall development of the state,” he said.

According to experts, obtaining special category status helps states avail certain financial and tax benefits aimed at helping them attract investment and boost economic growth due to certain geographical and socioeconomic disadvantages.“Under SCS, the Center provides 90 per cent of the funds in sponsored schemes. Other states that do not fall in this category get 60 to 70 per cent of the funds from the Centre, while the rest must be managed from their own funds. finance. These states also get subsidies on excise and customs duties, income tax and corporate tax,” the minister said.