7th June 2024 (13 Topics)
1
Jun
3
Jun
4
Jun
5
Jun
6
Jun
7
Jun
8
Jun
10
Jun
11
Jun
12
Jun
13
Jun
14
Jun
15
Jun
17
Jun
18
Jun
19
Jun
20
Jun
21
Jun
22
Jun
24
Jun
25
Jun
26
Jun
27
Jun
28
Jun
29
Jun
Special Category Status
Context
After the recent Lok Sabha Election 2024, Bihar, Andhra Pradesh are demanding special category status for their respective states. However, the Fourteenth Finance Commission removed the concept of special category status from states, and since then, the Centre has largely discouraged calls for special category status in recent years.
What is Special Category Status?
- Special Category Status (SCS) is a classification granted by the Centre to certain states in India to aid in their development.
- It is based on specific geographical and socio-economic disadvantages. The scheme was introduced in 1969 following recommendations from the Fifth Finance Commission.
- Criteria for Granting SCS: Before granting SCS to a state, five factors are considered:
- Hilly and difficult terrain
- Low population density and/or significant tribal population
- Strategic location along international borders
- Economic and infrastructural backwardness
- Non-viable nature of state finances
- Currently, 11 states in India have been granted SCS, including Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
- Benefits of SCS:
- States with SCS receive funding from centrally sponsored schemes in a more favorable ratio of 90:10 (Centre), compared to general category states. For Non-Special Category Status, the Normal Central Assistance was calculated as 30% grant and 70% loan.
- They are provided Special Plan Assistance for projects of special importance to the state.
- Unspent funds do not lapse at the end of the financial year.
- They also enjoy other benefits such as tax concessions.
Why Bihar is Demanding SCS?
- Bihar is demanding SCS due to its low per capita net state domestic product and high poverty rates.
- Its per capita income is among the lowest in the country, and a significant portion of its population is multidimensionally poor according to the National Family Health Survey 5.
Why Andhra Pradesh is Demanding SCS:
- Andhra Pradesh is seeking SCS primarily because of the revenue loss it experienced after the 2014 bifurcation of the state, which led to the formation of Telangana.
More Articles
Courses
Study
Notes
Home
Resources
More
