Why this Budget is considered good for Bihar ?

The Union Budget 2013 presented by  Chidambaram didnot have any special emoluments for Bihar, yet the Finance Minister named Bihar several times during his speech and praised it for the development.

He also promised to review the criteria of Granting Special Status to States in favor of Bihar CM Nitish Kumar’s long term demand.

The finance minister gave the thumbs up to the Bihar chief minister’s pet project, Nalanda University: “The reconstruction of the Nalanda University has gathered momentum. The government is committed to the creation of Nalanda University as a centre of educational excellence.”

He also heaped praises upon Bihar for increasing its contribution in rice production.

Reacting on this, Bihar CM Nitish Kumar hailed Chidambaram for promising to revisit criteria for special category status and said that it was a ‘victory in-principle’ for Bihar in view of its consistent demand for grant of such a status.


“We have been demanding review of criteria for special status to the states for a long time and framing of new criterion for grant of such a status to backward states like Bihar….I am glad that Chidambaram has referred to revisiting criteria for special status during his budget speech,” Mr Kumar told reporters.

“It is the victory of the people of Bihar (on Centre agreeing to revisit special status criteria) and Chidambaram deserves kudos for understanding our aspirations for development,” Mr Kumar said.

Mr Kumar expressed hope that the Finance Commission and the Planning Commission will provide funds to Bihar by taking into account economic backwardness in the state in the wake of an apparent acknowledgement of the same by Chidambaram in the budget speech.

The Centre’s commitment to review special status criteria has opened door for backward states like Bihar and everybody should rally behind the ongoing endeavour on special status, Mr Kumar said.