Special Category Status(SCS) demand by Bihar and Andhra Pradesh gained momentum after 2024 Lok Sabha Elections results | Current Affairs | Vision IAS
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    Special Category Status(SCS) demand by Bihar and Andhra Pradesh gained momentum after 2024 Lok Sabha Elections results

    Posted 06 Jun 2024

    Updated 07 Jun 2024

    2 min read

    About SCS

     

    • SCS is a classification given by the Centre to assist in development of those states that face geographical and socio-economic disadvantages.
    • It was first introduced in 1969 on recommendations of Fifth Finance Commission (FC). 
    • In 1969, Jammu & Kashmir (J&K), Assam, and Nagaland were granted SCS.
      • Later, Sikkim, Tripura, etc. were given SCS.
    • SCS States used to receive grants based on Gadgil-Mukherjee formula.
    • constitution does not include any provision for categorization of any State in India as an SCS state. 
      • However, a wide range of special provisions are available to as many states that have been listed under Articles 371, 371-A to 371-H, and 371-J.
    • Following the recommendations of the 14th FC, SCS ceased to exist and thus no SCS has been granted to any State.
      • Current funding pattern to North Eastern and Himalayan States etc. is on account of recommendations of the Sub-Group of Chief Ministers and not as per their SCS.

    Benefits of Granting SCS to States

    • In the SCS States, Centre-State funding of centrally sponsored schemes is divided in 90:10, far more favorable than 60:40 for general category States. 
    • In case of unspent money, states with SCS have the provision to carry it forward.
    • SCS states are exempted from customs duty, corporate tax, income tax, and other taxes to attract investment.
    • Tags :
    • Special Category Status
    • Gadgil-Mukherjee formula
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