Bihar has again raised a demand from centre to grant special category status to it.

• The concept of SCS was first introduced in 1969 by Fifth Finance Commission.
• It has been not mentioned in Constitution. The rationale for special status was that certain states were historically disadvantaged in contrast to others, because of their inherent features, low resource base and cannot mobilize resources for development.
• The decision to grant special category status was earlier with former Planning Commission body called the National Development Council (NDC). NITI Aayog, which had replaced Planning Commission has no power to allocate funds for states falling under this category, therefore, now it is discretion of ruling party at Centre to dole out special favours to states.
• Earlier, NDC accorded this status to states having hilly and difficult terrain, low population density or sizeable share of tribal population, strategic location along borders with neighbouring countries, economic and infrastructural backwardness and non-viable nature of state finances.

The 14th Finance Commission also had recommended variables such as “forest cover” for devolution, with weightage of 7.5 in criteria to benefit north-eastern States.