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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.

The Karnataka Congress on Monday junked reports that the State Road Transport Corporation would be hiking bus fares. The party on X noted that transport minister has not placed any such proposals before the government.

The party's account further noted that BJP leaders should 'stop spreading lies' and rather answer about the increase in auto part prices, fuel prices, and train fares in the last ten years.

Karnataka Congress, in the post, continued that people should be allowed to answer about the burden on state governments due to the central government's price hike policy.

BJP leaders like Tejasvi Surya took potshots at the Congress government over news of the alleged fare hike, attributing it to the party's 'Khatakhat Model of Governance.'

KSRTC chairperson, S R Srinivas, however said on Sunday that the body has submitted a proposal to the government to hike the fare by 15 to 20 per cent.

"We had a board meeting two days ago. We have proposed a hike of 15 per cent to 20 per cent. The rest is up to the discretion of Chief Minister Siddaramaiah. If KSRTC is to survive, fare hike is inevitable," he said.

The chairperson also noted that fuel and auto parts have seen prices go up substantially, but there has been no increase in bus fares since 2019.

"The salary revision of the KSRTC employees has not been done since 2020. Hence, increasing the ticket price is necessary," Srinivas added.

As per the chairperson, the corporation has suffered a loss of Rs 295 crore in the last three months.

To a question on whether the hike would burden male passengers since women are allowed to travel free of cost under the 'Shakti' scheme, Srinivas said there is no question of putting burden only on men. He noted that the state government continues to bear the expenses for women travelling in buses.

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.