Special Category Status State

Special Category Status State

Special Category Status State: After the results of the Lok Sabha elections, there is now a buzz in India about making Bihar and Andhra Pradesh special status states. Let's find out what are the benefits of making a state a special category state.

 Special Status States: Recently, the elections for the 18th Lok Sabha were completed in India, where once again the NDA alliance secured a majority. The NDA alliance won 292 seats, while the India alliance won 240 seats. Unlike the previous time when the BJP alone secured a majority, this time the government is being formed with the support of coalition partners.

In this scenario, the parties of Bihar Chief Minister Nitish Kumar, Janata Dal United, and Andhra Pradesh's Chandrababu Naidu's Telugu Desam Party have made significant contributions. Amidst this, there are speculations about granting special state status to these two states. What are the benefits of becoming a special state? How is the status of a special state granted? How many states currently have this status in India?

When did it start?

The status of Special Category States in India was determined based on the Gadgil Formula by Mahavir Tyagi, the chairman of the Fifth Finance Commission in 1969. According to this, Assam, Nagaland, and Jammu and Kashmir were designated as Special Category States. The Gadgil Formula considered social, economic, and geographical conditions in its assessment. The National Development Council of India had prepared some criteria for granting special state status.

These criteria included per capita income of the state, its source of income, the nature of the state's area (whether it is hilly, remote, etc.), and its population, among others. Article 371 of the Indian Constitution provides special provisions for certain states, which are designated as special category states.

What are the benefits of this?

When a state is granted special category status, it receives many benefits. The central government provides special concessions to such states. Additionally, they receive more funding compared to other states. 30% of the central government's budget is spent on these states. If the allocated amount is not spent in one year, it is carried forward to the next year. Conversely, in regular states, unspent funds lapse and cannot be carried forward.

States with Special Category Status:

Currently, 11 states in India have been granted the status of Special Category States. Most of these states are in the northeastern region, including Meghalaya, Manipur, Mizoram, Sikkim, Tripura, Arunachal Pradesh, Nagaland, and Assam. Additionally, hilly states like Uttarakhand, Jammu and Kashmir, and Himachal Pradesh are included.