Bihar State PCS

• 08 Jun 2024

Special Status

Why in News?

In the aftermath of the General Elections, the Janata Dal (United) and the Telugu Desam Party have emerged as influential players in government formation at the Centre.

• Their renewed emphasis on securing special category status for Bihar and Andhra Pradesh has reignited discussions on this crucial issue.

Key Points

• Special Category Status is a classification provided by the Central government to support the development of states facing geographical and socio-economic challenges.
  • Currently, 11 States in India have SCS which are Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
• Special category status offers benefits to designated states such as enhanced funding, with 90% of funds for centrally-sponsored schemes provided by the Centre.
  • These states can carry forward unused funds from one fiscal year to the next and enjoy tax concessions. They also receive a higher allocation from the Centre's Gross Budget, amounting to 30%.

Special Category Status (SCS)

• The Constitution does not make a provision for SCS and this classification was later done on the recommendations of the 5^th Finance Commission in 1969.
• Status was first accorded to Jammu and Kashmir, Assam and Nagaland in 1969.
• SCS for plan assistance was granted in the past by the National Development Council of the erstwhile Planning Commission.
• SCS is different from Special status which imparts enhanced legislative and political rights, while SCS deals with only economic and financial aspects.