Answer

In light of the "Bihar Caste-based Survey, 2022," which unveiled that almost one-third of Bihar's population remains in poverty, the Bihar Cabinet has recently approved a resolution urging the conferment of Special Category Status (SCS) upon the state.

Special Category Status (SCS) is a designation provided by the Central government to support the development of states confronting geographical and socio-economic challenges. Such states receive preferential treatment in the allocation of central assistance and grants from the federal government. This assistance to SCS States has been subsumed in an increased devolution of the divisible pool funds for all States (increased to 41% in the 15th FC from 32%).

Reasons for Demand of Special Category Status

• Economic Disparities: Many states seeking Special Category Status often grapple with significant economic disparities. For instance, Bihar in India has highlighted its economic challenges. These disparities prompt states to seek additional support for targeted development initiatives.
• Geographical Challenges: States with difficult geographical terrains, such as hilly or remote areas, often face infrastructural challenges. Himachal Pradesh in India have, in the past, advocated for Special Category Status due to their challenging topography, requiring special attention for infrastructure development.
• Resource Constraints: Some states lack sufficient resources for comprehensive development. The northeastern states of India, like Arunachal Pradesh and Manipur, have emphasized their resource constraints as a basis for seeking Special Category Status. 
• Social Indicators: States struggling with poor social indicators may demand Special Category Status to address specific social issues. Odisha in India, for example, has cited low human development indices and a high incidence of poverty as reasons for seeking special status to uplift its population.

Concerns related to Special Category Status

• Financial Implications: Granting Special Category Status often comes with financial implications for the central government. The additional funds and concessions provided to these states may strain the national budget, leading to concerns about fiscal sustainability and equity among states.
• Inequitable Distribution: Allocation of Special Category Status can lead to an inequitable distribution of resources. States not classified as special may feel neglected, leading to regional imbalances and potential unrest.
• Dependency and Accountability: Some states, once granted Special Category Status, might become overly dependent on central assistance. This dependency can hinder the development of a self-sustaining economy and reduce the state government's accountability for effective governance.
• Political Manipulation: The demand and grant of Special Category Status can sometimes be influenced by political considerations rather than genuine developmental needs. This raises concerns about the politicization of the process.

Thus, it's important to  establish a transparent and standardized framework for evaluating states' eligibility for Special Category Status, incorporating clear and objective criteria that reflect the evolving socio-economic landscape. This framework should prioritize addressing current developmental challenges while allowing for periodic reassessment. Additionally, fostering inter-state cooperation and equitable resource distribution can help mitigate concerns related to regional disparities. 

Ultimately, a balanced and adaptive approach, driven by a commitment to inclusive growth and cooperative federalism, will be essential to navigate the complexities associated with Special Category Status and promote holistic and sustainable development across all regions