Special Category Status (SCS)
07.06.2024
Special Category Status (SCS)
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For Prelims: About Special Category Status (SCS), Criteria, Benefits for States under SCS |
Why in the news?
Special category status for Bihar and Andhra Pradesh: Past demands come back into the limelight.
About Special Category Status (SCS):
- In 1969, the Fifth Finance Commission of India introduced the Special Category Status to aid certain states in their development and accelerate growth if they faced historical economic or geographical disadvantages.
Criteria for Special Category Status:
- Factors considered for granting Special Category Status included challenging and hilly terrain, low population density, a significant tribal population, strategic border location, economic and infrastructural backwardness and non-viable state finances.
- However, the system was discontinued based on the recommendation of the 14th Finance Commission, which proposed addressing the resource gap of states by increasing the tax devolution from 32% to 42%.
Benefits for States under SCS:
- The Centre pays 90% of the funds required in centrally-sponsored schemes, compared to 60% or 75% for other states.
- Preferential treatment in getting central funds assistance, concession on excise duty to attract industries to the state, a significant 30% of the Centre’s gross budget goes to the special category states etc.
States under Special Category Status
- Currently, eleven states have the Special Category Status in the country including Assam, Nagaland, Himachal Pradesh, Manipur, Meghalaya, Sikkim, Tripura, Arunachal Pradesh, Mizoram, Uttarakhand, and Telangana.
- Telangana, the newest state of India, is accorded the status as it was carved out of another state - Andhra Pradesh, which hit the state's finances.
- Along with AP and Bihar, Odisha is another state demanding SCS.
Source: Indian Express
Ques :- With reference to the Special Category Status (SCS), consider the following statements:
1. The Constitution of India did not include any provision for categorizing SCS.
2. The Centre pays 90% of the funds required in centrally-sponsored schemes to SCS category states as compared to 60% or 75% for other states.
3. Currently only Assam, Arunachal Pradesh and Himachal Pradesh enjoy the status of SCS.
How many of the statements given above are correct?
A.Only one
B.Only two
C.All three
D.None
Answer B