Relevance:
Recently, the Chief Minister of Andhra Pradesh requested the Prime Minister for the grant of Special Category Status (SCS) which, he insisted, was essential to mitigate the impact of bifurcation.
About SCS:
- Special category status is a classification given by the Centre to assist development of states that face geographical and socio-economic disadvantages.
Historical Background:
- This concept was first introduced in 1969 – recommendation of the 5th Finance Commission.
- This concept was named after Dr. Gadgil Mukherjee (the then Deputy Chairman of the Planning Commission).
- Criteria for special category status (Gadgil formula):
- Hilly and difficult terrain
- Low population density or sizeable share of tribal population
- Strategic location along borders with neighbouring countries
- Economic and infrastructural backwardness
- Non-viable nature of state finances
- 11 states namely, Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand were granted special category status.
- Special Category Status for plan assistance was granted in the past by the National Development Council to the States that are characterized by a number of features necessitating special consideration.
- No constitutional provision for the categorization of any state in India as a ‘special category.
- However, a wide range of provisions are available to as many as 10 states that have been listed under Articles 371, 371-A to 371-H, and 371-J.
Current Scenario:
- The 14th FC effectively removed the concept of special category status after its recommendations were accepted in 2015.
- However, the Central Government has agreed to give a special assistance to the State of Andhra Pradesh to make up for the additional Central share the State might have received during 2015-16 to 2019-20, if the funding of Centrally Sponsored Schemes (CSS) would have been shared at the ratio of 90:10 between the Centre and the State.
Reference: The Hindu
