Iran to Muslim states: Why not cutting ties with ruthless Israel? Why not implementing Quranic teachings?

New Delhi: Retail inflation increased to 5.08 per cent in June as kitchen items became dearer, according to government data released on Friday.

The Consumer Price Index (CPI) based retail inflation was 4.8 per cent in May 2024 and 4.87 per cent in June 2023 (previous low).

Inflation in the food basket was 9.36 per cent in June, up from 8.69 per cent in May, according to the data released by the National Statistical Office (NSO).

The government has tasked the Reserve Bank of India (RBI) to ensure that the CPI inflation remains at 4 per cent with a margin of 2 per cent on either side.

The RBI projected the CPI inflation for 2024-25 at 4.5 per cent, with Q1 at 4.9 per cent, Q2 at 3.8 per cent, Q3 at 4.6 per cent, and Q4 at 4.5 per cent.

The central bank mainly factors in the retail inflation while deciding its bi-monthly monetary policy.

New Delhi: The Centre has ruled out any plan to give a special category status to Bihar, a core demand by its key ally, the Janata Dal (United), prompting the Rashtriya Janata Dal to take a swipe at JDU leader and Bihar Chief Minister Nitish Kumar.  

Ramprit Mandal, JDU MP from Bihar's Jhanjharpur, had asked the Finance Ministry if the government has a plan to provide special status to Bihar and other most backward states to promote economic growth and industrialisation.

In a written response, Minister of State for Finance Pankaj Chaudhary said "case for Special Category Status for Bihar is not made out".

"The Special Category Status for plan assistance was granted in the past by the National Development Council (NDC) to some States that were characterized by a number of features necessitating special consideration. These features included (i) hilly and difficult terrain, (ii) low population density and/or sizeable share of tribal population, (iii) strategic location along borders with neighbouring countries, (iv) economic and infrastructural backwardness and (v) non-viable nature of State finances," the reply stated. "Earlier, the request of Bihar for Special Category Status was considered by an Inter-Ministerial Group (IMG) which submitted its Report on 30th March, 2012. The IMG came to the finding that based on existing NDC criteria, the case for Special Category Status for Bihar is not made out," it added.

A special status ensures more central support to a backward state to expedite its growth. While the Constitution does not provide for a special status for any state, it was introduced on the recommendations of the Fifth Finance Commission in 1969. Among the states that have received a special status so far are Jammu and Kashmir (now a Union Territory), Noreastern states and hill states such as Himachal Pradesh and Uttarakhand.

A state with a special category status gets more funding support from the Central in the Union government's schemes and several concessions in taxes.

A special status for Bihar has been a longstanding demand of the JDU. With the BJP falling short of a majority in this election and tying up with JDU, TDP and other parties to cobble up the magic figure, the Nitish Kumar-led party was expected to push hard for its core demand. The JDU also raised this demand at an all-party meeting before the budget session.

JDU MP Sanjay Kumar Jha said the demand for a special state status for Bihar has been a priority for the JDU. "Bihar should get the status of a special state, this has been the demand of our party since the beginning. Chief Minister Nitish Kumar has held big rallies for this demand. If the government feels that there is a problem in doing this, then we have demanded a special package for Bihar," he said, according to a PTI report.

With the Centre making it clear that it has no plan to grant a special status, Bihar's main Opposition RJD has hit out at the JDU, which is ruling the state in alliance with BJP. "Nitish Kumar and JDU leaders must enjoy the fruits of power at the Centre and continue their drama politics on special status," the RJD said in a post on X.

A source in the government said that the Special Category Status issue was first addressed in the National Development Council meeting in 1969. "During this meeting, the D R Gadgil Committee introduced a formula to allocate Central Assistance for state plans in India. Prior to this, there was no specific formula for fund distribution to States, and grants were given on a scheme basis. The Gadgil Formula, approved by the NDC, prioritized special category States such as Assam, Jammu & Kashmir, and Nagaland, ensuring their needs were addressed first from the pool of Central assistance."

The Special Category status concept was introduced by the 5th Finance Commission in 1969 recognising historical disadvantages of certain regions, the source said.

"Until the 2014-2015 fiscal year, the 11 States with Special Category Status benefited from various advantages and incentives. However, following the dissolution of the Planning Commission and the formation of the NITI Aayog in 2014, the recommendations of the 14th Finance Commission were implemented, leading to the discontinuation of Gadgil Formula-based grants. Instead, the devolution from the divisible pool to all States was increased from 32% to 42%," the source added.

Currently, no additional States are being granted Special Category Status, as the Constitution does not provide for such categorisation, said the source in the government.

Bengaluru: The opposition BJP in Karnataka on Thursday (July 18) warned the Congress government in the state to be prepared for the wrath of the people if it fails to table the bill that mandates reservations for Kannadigas in the private sector in the ongoing Legislative session.

The party slammed Chief Minister Siddaramaiah for taking an U-turn on the Karnataka State Employment of Local Candidates in the Industries, Factories and Other Establishments Bill, 2024, which was cleared in the Cabinet meeting on Monday and put on hold late Wednesday night after uproar by the industry.

Clarifying on the decision to hold back the bill, Siddaramaiah said on Wednesday that the draft bill intended to provide reservations for Kannadigas in private sector companies, industries, and enterprises is still in the preparation stage.

A comprehensive discussion will be held in the next Cabinet meeting to make a final decision, he said.

BJP state president B Y Vijayendra in a post on 'X' asked, "Why did you bring the bill to give employment to the kannadigas? Why did you hold it back? Why mess with the lives of Kannadigas? Do you need Kannadigas to insult?" "Let the government present the job reservation bill for Kannadigas, which has given hope to lakhs of unemployed people in rural areas who were deprived of job opportunities despite their qualifications, in the current session, or else be ready to face the anger of Kannadigas," the Shikaripura MLA said.

Vijayendra condemned the 'cowardly decision' of putting the bill on hold which 'insulted Kannada-Kannadiga-Karnataka'. The bill aims to provide employment to Kannadigas.

The BJP leader sought to know why the government, which had moved forward to address the demand of the pro-Kannada fighters, after many years of struggle to protect the employment rights of the children of this land, gave up within a day.

It seems that the lobby of the anti-Karnataka forces, which suppress the self-respect of the country, the self-esteem of the Kannadigas, has prevailed over the chief minister, forcing him to take a 'U-turn' three times within a day, Vijayendra alleged.

"Fearing the split in the INDI Alliance, Delhi's big 'hand' must have tied the hands of the chief minister, otherwise how can he take an escapist decision to sideline the bill that will improve the lives of Kannadigas?" the BJP state president said.

The people of the state will never forgive the Congress leaders if the Congress government and the chief minister held back the 'pro-Kannada bill' in an attempt to divert public attention and also mislead the investigation into the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC) and Mysuru Urban Development Authority (MUDA) scams that have rocked the state, he said.