Union finance minister Nirmala Sitharaman made it clear that the centre will not take into account requests from any state to be given "special category status," which is a big setback for states like Odisha and Bihar that have been pressing for it for a while.
The FM, who was speaking with the media about the Union Budget, responded when asked whether the Centre will take Odisha's request for special category status into consideration, “(The 14th) Finance commission has clearly said no special status can be given.” Taking examples of Andhra Pradesh and Telangana, which were given special category status in the initial years after bifurcation, she said, “But the finance commission’s clear opinion is no more special status category.”
Odisha and Bihar have pushed for special category status in order to receive 90% of the cash in centrally sponsored projects instead of the current 60%, along with other advantages. In order to accommodate it and take into account its vulnerability to natural catastrophes, Odisha has been asking for a revision in the criteria.
Earlier this month, in the parliamentary debate on the Motion of Thanks to President’s address, BJD MP Sasmit Patra had raised the issue in Rajya Sabha. “Whenever a cyclone hits Odisha, houses are damaged. Crops get destroyed. Whenever there is such a disaster, the Centre should consider making Odisha a special focus state for three years and give funds in the 90:10 ratios,” Patra had said.