What is Special Category status (SCS)? Do they have any constitutional support? On what basis, Andhra Pradesh claims for such status? What are the 14th Finance Commission recommendations in this regard? (200 words)
Refer – The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 7 years
KEY POINTS
Special Category Status (SCS)
· Considering the fact that some areas in India are historically disadvantaged as compared to others, the Centre has assisted states with funds in the past allocated by the former Planning Commission body called the National Development Council (NDC).
· The NDC granted this status based on a number of features of the States which included:
a) hilly and difficult terrain
b) low population density or the presence of sizeable tribal population
c) strategic location along international borders
d) economic and infrastructural backwardness
e) non-viable nature of State finances
· The Centre pays 90 per cent of the funds required in a centrally-sponsored scheme to special category status category states as against 60 per cent in case of normal category states, while the remaining funds are provided by the state governments.
Constitutionality
· The Constitution does not include any provision for categorisation of any State in India as a Special Category Status (SCS) State.
Andhra Pradesh’s status
· Following the bifurcation of A.P., Andhra lost a large volume of its revenue due to Hyderabad remaining the capital of Telangana.
· In a debate in the Rajya Sabha on the A.P. Reorganisation Act, then Prime Minister Manmohan Singh had said that SCS would be “extended to the Successor State of Andhra Pradesh for a period of five years.”
· This oral submission by the then PM has been the basis for A.P.’s claim to the status.
14th Finance commission recommendations
· The Central plan assistance to SCS States has been subsumed in an increased devolution of the divisible pool to all States (from 32% in the 13th FC recommendations to 42%) and do not any longer appear in plan expenditure.
· It effectively removed the concept of Special Category States (SCS) and restricts it only to the north-eastern and three hilly states.
