Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has down played the demand for special category state status to Bihar as a recipe for fast growth. Addressing the Global Bihar Summit in Patna, he said the state could do a lot by putting in money into services rather than subsidising goods.

He favoured cutting subsidies to half in three years. Ahluwalia said even in the case of fiscal transfers, the Planning Commission formula provided more money to poorer states. He said if used well, it was a kind of incentive for growth as has been the case with the Pradhan Mantri Gram Sadak Yojana that has worked very well in Bihar.