The Narendra Modi government’s stance on Special Category Status forced TDP to quit NDA in 2018. After BJP failed to secure an absolute majority in the 2014 elections, it relied on TDP and JDU. This issue is now resurfacing.
Before rejoining NDA for the 2024 polls, TDP chief Chandrababu Naidu reiterated that differences over Special Category Status led to their 2018 exit. Both TDP and JDU have long demanded this status for their states.
Dr. Manmohan Singh’s government granted Special Category Status to Andhra Pradesh before the 2014 elections. The BJP also pledged this for AP for 10 years in its manifesto. However, the Modi government shelved the move, citing the 14th Finance Commission’s recommendation to increase states’ share of central taxes to 42% from 32%, which abolished granting Special Category Status.
TDP and JDU argue that a political decision is needed rather than relying on technical aspects. Former NITI Aayog vice chairman Rajiv Kumar suggested that the Union government carefully examine Andhra Pradesh and Bihar’s demands for special status.
Andhra Pradesh has demanded this status since its 2014 bifurcation, citing revenue loss as Hyderabad became Telangana’s capital. Bihar has also demanded special status since 2005, following the creation of Jharkhand in 2000, which caused revenue loss.
For special category status states, the Centre covers 90% of the funds for centrally sponsored schemes, compared to 60% for normal category states. Recently, Congress general secretary Jairam Ramesh asked the Prime Minister if he would fulfill his 2014 election promise to grant special category status to Bihar.
