What is special category status to a State?
OR
What is the difference between Special Status
and Special Category Status to States?
» There is a huge
difference between the terms ‘Special Status’ and ‘Special Category Status’
» Special status is
guaranteed by the Constitution of India through an Act passed by the two-third
majority in both houses of the Parliament, as in the case of Jammu and Kashmir,
whereas Special Category Status is granted by the National Development Council (NDC),
an administrative body of the government.
» Special Status empowers
legislative and political rights while Special Category Status deals only with
economic, administrative and financial aspects.
» The concept of a special
category state was first introduced in 1969 when the 5th Finance
Commission sought to provide certain disadvantaged states with preferential
treatment in the form of central assistance and tax breaks.
» Initially three states
Assam, Nagaland and Jammu & Kashmir were granted special status but since
then eight more have been included (Arunachal Pradesh, Himachal
Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura and Uttarakhand).
» So, currently total 11
states enjoy the Special category status.
1.
Arunachal
Pradesh
2.
Assam
3.
Himachal
Pradesh
4.
Jammu
and Kashmir
5.
Manipur
6.
Meghalaya
7.
Mizoram
8.
Nagaland
9.
Sikkim
10.Tripura
11.
Uttarakhand
» The special status is
given to states based on certain parameters. Which are
· Low resource base
· Hilly and difficult
terrain
· Low population density
· Sizable share of tribal
population
· Hostile location
» The benefits that a
state gets under the provision of being a 'special state' are -
· Preferential treatment
in getting Central funds assistance
· Concession on excise
duty, this attracts industries to the state
· Significant 30% of the
Centre’s gross budget goes to the Special category states
· These states avail
themselves of the benefit of debt swapping and debt relief schemes
· In centrally sponsored
schemes and external aid special category states get it in the ratio of 90%
grants and 10% loans, while other states get 30% of their funds as grants.
Gadgil Formula
·
The
Gadgil formula is related to transfer of assistance to the states by center under
various schemes
·
This
formula was formulated with the formulation of the fourth five-year plan for
the distribution of plan transfers amongst the states.
·
It
was named after D. R. Gadgil, then deputy chairman of
the Planning Commission.
·
The
central assistance provided for in the first three plans and annual plans of
1966–1969 lacked objectivity in its formulation and did not lead to equal and
balanced growth in the states. The National Development Council (NDC)
approved the following formula:
»
Special
Category states like Assam, Jammu
and Kashmir and Nagaland were given preference. Their needs should
first be met out of the total pool of Central assistance.
»
The
remaining balance of the Central assistance should be distributed among the
remaining states on the basis of the following criteria:
1. 60 per cent on the basis
of population;
2. 7.5 per cent on the
basis of tax effort, determined on the basis of individual State's per capita
tax receipts as percentage of the State's per capita income;
3. 25 per cent on the basis
of per capita state income, assistance going only to States whose per capita
incomes are below the national average;
4. 7.5 per cent for special
problems of individual states.
Frequently asked:
How many states have special status in India?
How many special category states are there in India?
The
special status was granted to Assam, Nagaland, and Jammu & Kashmir.
Subsequently, eight more states - Arunachal Pradesh, Himachal Pradesh, Manipur,
Meghalaya, Mizoram, Sikkim, Tripura, and Uttarakhand - were included in the
special status category. As many as 11 states fall under the
category.
See also:
·
Important Sessions of Indian National Congress