Identification of Special Category States for plan assistance

Special Category Status for plan assistance has been granted in the past by the National Development Council (NDC) to some States that are characterized by a number of features necessitating special consideration. These features include: (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 14th Finance Commission recommendations provide for higher share of divisible pool of central taxes for the award period of 2015-20 from the earlier 32 per cent to 42 per cent from 2015-16. This would increase the quantum of untied funds available to the States which could be utilized for the various schemes /programmes. The devolution of central taxes to Bihar has increased from Rs.36,963 crore in 2014-15 (actuals) to Rs. 50,748 crore in 2015-16 (BE).

The Special Plan for Bihar was approved in 2003-04 under the erstwhile Rashtriya Sam Vikas Yojana with an allocation of Rs. 1000 crore per annum on 100% grant basis. The same allocation was approved to be continued during the Eleventh Plan period under the Backward Regions Grant Fund. The allocation was Rs.2000 crore for 2010-11 and Rs.1470 crore for 2011-12. The Special Plan for Bihar was continued in 2012-13 for which an allocation of Rs.1500 crore was made. It was decided to continue the Special Plan for Bihar in the remaining four years 2013-14 to 2016-17 of the Twelfth Five Year Plan with an allocation of Rs.12,000 crore to meet the requirement of new projects (Rs. 10,500 crore) as well as on-going projects (Rs. 1500 crore) during the entire Twelfth Five Year Plan period.

A package of Rs 1.25 lakh crore has been provided in 2015-16 to Bihar for development of various sectors like highways, roads, power, etc.

During 2015-16, Rs. 1000 crore has been allocated as one time assistance towards support for LWE districts.

The increased transfer of resources from Union Government to the States through devolution and Centrally Sponsored Schemes would provide the States with more resources for various sectors for development.

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