Which two Indian states have been given special status Class 10

CBSE 10 - Civics

Table of Contents Show

Special category status - Historical background
Who grants special status to states?
Criteria for special category status:
Can special category status be granted to more states now?
Why these special provisions?
Benefits states confer with special category status:
What is the difference between special category status and special status?
Which states have been demanding special category status

Asked by krishnahari7016 | 08 Jun, 2022, 01:16: PM

ANSWERED BY EXPERT

A Special Category Status (SCS) is a classification given by Centre to assist in the development of those states that face geographical and socio-economic disadvantages like hilly terrains, strategic international borders, economic and infrastructural backwardness, and non-viable state finances.

Special category status - Historical background

The concept of a special category status was first introduced in 1969 when the fifth Finance Commission sought to provide certain disadvantaged states with preferential treatment in the form of central assistance and tax breaks, establishing special development boards, reservation in local government jobs, educational institutions, etc.

This formula was named after the then Deputy Chairman of the Planning Commission, Dr Gadgil Mukherjee and is related to the transfer of assistance to the states by centre under various schemes.

Initially, three states; Assam, Nagaland and Jammu & Kashmir were granted special status but from 1974-1979, five more states were added under the special category. These include Himachal Pradesh, Manipur, Meghalaya, Sikkim and Tripura.

In 1990, with the addition of Arunachal Pradesh and Mizoram, the states increased to 10. The state of Uttarakhand was given special category status in 2001.

But after the dissolution of the planning commission and the formation of NITI Aayog, the recommendations of the 14th Finance Commission were implemented which meant the discontinuation of the Gadgil formula-based grants.

The 14th Finance Commission effectively removed the concept of special category status after its recommendations were accepted in 2015.

The rationale for special status is that certain states, because of inherent features, have a low resource base and cannot mobilize resources for development.

Who grants special status to states?

The decision to grant special category status lies with the National Development Council, composed of the prime minister, union ministers, chief ministers and members of the planning commission, who guide and review the work of the commission.

Special category status for plan assistance has been granted in the past by the National Development Council (NDC) to some states that are characterized by a number of features necessitating special consideration.

Criteria for special category status:

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

Can special category status be granted to more states now?

In the present scenario, it is believed that no more states can be given the status of a special category state.

The Constitution of India does not include any provision for the categorization of any state in India as a 'special category state.

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.

Some of these states are Maharashtra and Gujarat, Nagaland, Assam, Manipur, Andhra Pradesh, Sikkim, Mizoram, Arunachal Pradesh and Telangana and Goa. (Art 371I deals with Goa, but does not include any provision that can be termed 'special'.)

While these set of provisions were incorporated into the Constitution by Parliament through amendments under Article 368, Articles 370 and 371 have been part of the Constitution from the time of its commencement on January 26, 1950.

Why these special provisions?

The intention behind these provisions is to safeguard the interest and aspirations of certain backward regions or to protect cultural and economic interests of the tribal people or to deal with the disturbed law and order in some parts.

Benefits states confer with special category status:

States which are granted special category status enjoy several benefits.

1. The central government bears 90 percent of the state expenditure on all centrally-sponsored schemes and external aid while rest 10 percent is given as loan to state at zero percent rate of interest.

2. Preferential treatment in getting central funds.

3.Concession on excise duty to attract industries to the state.

4. 30 percent of the Centre's gross budget also goes to special category states.

5. These states can avail the benefit of debt-swapping and debt relief schemes.

6. States with special category status are exempted from customs duty, corporate tax, income tax and other taxes to attract investment.

7. Special category states have the facility that if they have unspent money in a financial year; it does not lapse and gets carry forward for the next financial year.

What is the difference between special category status and special status?

The constitution provides special status through an Act that has to be passed by 2/3rds majority in both the houses of Parliament whereas the special category status is granted by the National Development Council, which is an administrative body of the government.

For example, Jammu and Kashmir enjoyed a special status as per Article 370 and also special category status. But now that Article 35A has been scrapped and it has become a union territory with legislature, special category status doesn't apply to J&K anymore.

Special status empowers legislative and political rights while special category status deals only with economic, administrative and financial aspects.