Centre needs to examine demands of Andhra, Bihar for special category status carefully: Former Niti Aayog vice-chairman Rajiv Kumar

Former Niti Aayog vice-chairman Rajiv Kumar urges careful examination of Andhra Pradesh and Bihar's special category status demands.

“The Union government needs to examine the long-standing demand of Andhra Pradesh and Bihar for special category status carefully and not in a hurry, as it could set a precedent and may put extreme pressure on the Centre’s fiscal resources,” former Niti Aayog vice-chairman Rajiv Kumar said on June 23.

Andhra Pradesh has been demanding special category status after its bifurcation in 2014 on the grounds of revenue loss as Hyderabad became the capital of Telangana.

Why is Bihar demanding the Special Category Status? | Explained 

Bihar has also been demanding the special status since 2005 when Nitish Kumar was sworn in as its Chief Minister. The State also suffered revenue loss after the mineral-rich Jharkhand was carved out of it in 2000.

"This (SCS) is their (Bihar and Andhra Pradesh) long-standing demand...this is a demand which needs to be considered very carefully because you have to carefully examine in detail the economic parameters on the basis of which this demand is being made," he told PTI in a video interview.

For special category status States, the Centre meets 90% of the funds required in a Centrally sponsored scheme against 60% in the case of normal category States. The remaining funds are provided by the State government.

"Because...if you do it in a hurry, then this might set a precedent, which is not going to be fiscally possible because more and more States will be making the same demand if we do this here, and that would mean extreme pressure on the government's fiscal resources," the economist added.