What is the Special Category Status?

17 Nov 2023

Context:

  • Recently, the Bihar Chief Minister said that he would launch a movement across the State if the Union government did not grant Bihar special category status.

What is the Special Category Status?

  • Special Category Status was introduced in 1969 on the recommendations of the Fifth Finance Commission.
  • SCS is a classification given by the Centre to assist development of states that face geographical and socio-economic disadvantages. (Constitution does not make a provision for SCS).
  • Indicator for Special Category Status
    • International border proximity, 
    • Hilly terrain, 
    • Economic disparities.
    • Sizable tribal population and 
    • Infrastructural backwardness.
  • State with Special Category Status
    • Eleven States: Assam, Nagaland, Himachal Pradesh, Manipur, Meghalaya, Sikkim, Tripura, Arunachal Pradesh, Mizoram, Uttarakhand and Telangana.
    • Telangana, the newest State of India, was accorded the status as it was carved out of another State — Andhra Pradesh.
  • Benefits of Special Category Status
    • Higher Central Funding: States with special status receive an increased share of Central funding. The government pays 90 percent of the funds in schemes that the Centre sponsors.
    • Financial Support for Development: Designated to provide financial support specifically for development purposes.
  • The 14th Finance Commission has done away with the ‘special category status’ for states, except for the Northeastern and three hill states.
    • It suggested filling the resource gap of such states through tax devolution by increasing it to 42% from 32%.
  • Concern With SCS:
    • It will further strained fiscal resources of center.
    • Similar demand from other states, For instance, demands from Andhra Pradesh, Odisha, etc.
    • Politicization of the issue by regional parties for electoral gains.

News Source: The Hindu

 

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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