Despite the announcement of a special economic package for Bihar in the Union Budget 2024-25, the denial of special state status continues to be a significant point of contention. On Tuesday, Finance Minister Nirmala Sitharaman proposed an allocation of Rs 26,000 crore for various road projects in Bihar. She stated that the central government will provide financial assistance to Bihar through aid from multilateral development agencies.
The Finance Minister also announced the establishment of airports, medical colleges, and sports infrastructure in Bihar. Additionally, the central government will formulate the 'Purvodaya' plan for the comprehensive development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Special State Status: An Unfulfilled Demand
Despite these development plans for Bihar, the long-standing demand for special state status remains unfulfilled. Special state status would provide Bihar with a greater share of central taxes, concessional interest rates on loans, and other special economic benefits. However, this status has yet to be granted to Bihar.
Detailed Development Plans
Sitharaman mentioned that the government will support the development of an industrial corridor in the eastern region. Additionally, the government will provide e-vouchers directly to 1 lakh students every year with an interest subvention of 3 percent of the loan amount. Bihar will see the establishment of airports, medical colleges, sports infrastructure, and power projects worth Rs 21,400 crore.
"We will formulate the 'Purvodaya' plan for the all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh," said the Finance Minister. "We will support the development of an industrial node at Gaya in Bihar on the Amritsar-Kolkata industrial corridor. This will catalyze the development of the eastern region. We will also support road connectivity projects, including the Patna-Purnea Expressway, the Buxar-Bhagalpur Highway, the Bodhgaya-Rajgir-Vaishali-Darbhanga road, and an additional two-lane bridge over the Ganga River in Buxar, with a total allocation of Rs 26,000 crore."
Bihar's Aspirations for Special State Status
Even with these plans, the demand for special state status for Bihar remains a significant issue. This status would not only accelerate the state's development but also empower it economically. While the special economic package for Bihar announced in the Union Budget 2024-25 is a welcome step, the aspirations of Bihar will remain unmet until it receives special state status.
The central government will provide financial assistance to Bihar through aid from multilateral development agencies, but it remains to be seen when the demand for special state status will be fulfilled.
