Centre likely to grant Bihar ’backward’ status soon

 

New Delhi, 26 Mar 2013 (TOI): The Centre will shortly change the criteria for evaluating a state’s claim to be "backward", meeting the demand of Bihar chief minister Nitish Kumar for special status well before the 2014 LokSabha polls.

 

"We have decided to change the criteria (for backwardness), and it will be done so in the coming months," a senior government source said. Besides Bihar, Jharkhand, Chhattisgarh, Odisha and parts of Rajasthan will qualify to be treated as "backward" under the soon-to-be unveiled criteria.

 

The decision, indicated by finance minister P Chidambaram in his Budget speech, will take on huge political significance because of the Bihar CM’s relentless advocacy for a new yardstick for judging backwardness of states and his preparedness to pledge support to whoever meets his demand.

 

The development would be significant at a time when the Manmohan Singh government is dealing with reduced numbers in Lok Sabha after the departure of 19 MPs of Dravida Munnetra Kazhagham and its one-MP ally VCK. Janata Dal (U)’s 20 MPs can prove very handy to the government.

 

The source also indicated that the Finance Commission may give relief to debt-stressed states: a category that includes West Bengal, Kerala and Punjab.

 

The change in criteria is being justified on the ground that the existing scheme for judging which states deserve "backward" label has become dated. Rather than labeling the categorization as "special status", the criteria will spell out new parameters for backwardness.

 

"What has hilly terrain got to do with backwardness? That criteria was tailored to suit the requirements of some states but but that has become dated," the government source said.

 

Kumar has argued that altering criteria for backwardness will help reduce the burden of Rs 6,000-7,000 croreBihar has to bear annually by way of its share of central schemes and to pay back funds borrowed from the Centre. A reduction of this daunting amount will make a big difference to a state like Bihar that is looking to improve delivery of agricultural, health, education and policing services.

 

Kumar, who recently organized a massive rally in the Capital to put pressure on the government, has said he will back whoever meets his demand for tagging Bihar as "backward": a marker which will entitle the state, among other things, to higher financial assistance from the Centre.

 

Kumar has been pressing for Bihar to be categorized as "backward" for long. However, his readiness to turn it into a condition for determining whom he should support at the Centre after the Lok Sabha polls has invested the plank with a bigger political significance.

 

More so because of his resolve to break away from the BJP if the latter insists on projecting Narendra Modi as its candidate for prime minister: something which combined with Centre’s promptness in considering his demand promises to turn him from a NDA constituent into a potential swing player.