The next government for India is all set to be created by NDA under the leadership of Prime Minister Narendra Modi. This time, however, the government will not be the same as it was in the previous elections. In simpler terms, this time it is going to be a coalition government. The Bhartiya Janata Party that won the previous elections has actually fallen short of the absolute majority this time. Amid all this, JDU, TDP, and more allies may ask for a special category status. What exactly is this special category status? Let's understand.
BJP is holding multiple meetings in Delhi. Discussions are being held with the alliance partners of the party and the state governments with regard to the formation of the National Democratic Alliance (NDA) government under the leadership of PM Narendra Modi. In times like these, there are multiple speculations relating to the possibility of the allies demanding the "Special Category Status". It is being speculated that the allies, specifically the Telugu Desam Party (TDS) and the Janata Dal United (JD(U) may ask for the "Special Category Status".
Understanding the Special Category Status
A special category status is actually allotted in situations to a state to enhance its growth prospects in case they are backward. This status is bestowed on the growth rate of these areas in case they experience any socio-economic or geographical demerits.
Does the Constitution of India have any such provision?
No, the Constitution of India does not have any such provision to bestow a state with the special category status. However, a special category status provision was designed later on the Fifth Finance Commission's recommendation in the year 1969.
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Which states in India received the Special Category Status for the very first time?
In the year 1969, there were many states that received the Special Category Status. The states of Jammu and Kashmir, Nagaland, and Assam were the very first states ever to receive the Special Category Status in India.
Eleven other states were added to the list later, including Himachal Pradesh, Meghalaya, Manipur, Tripura, Sikkim, Uttarakhand, Mizoram, Telangana, and Arunachal Pradesh have been given the special category status.
The state of Telangana too had got the special category status tag after getting formed out of Andhra Pradesh.
It is important to note that the special category status had been done away with the 14th Finance Commission for the states, except for three hill states and the Northeastern states. This was done in order to accommodate the resource gap in these states via tax devolution. It was enhanced from 32 percent to 42 percent.
Is a special category state different from a special status?
Certainly, the tag of special status bestows increased political and legislative rights. A special category status, on the other hand, caters to financial and economic aspects only.
Why do states demand special category status? What are the benefits?
States seek the special category status due to the many benefits bestowed due to the tag.
First thing first, in case a state gets bestowed with the "Special Category Status", it receives a total of 90 percent share of funds from the Central Government in order to implement the schemes that are centrally sponsored. Other states, on the other hand, receive only a 60 to 70 percent share of funds.
In case the allotted money is not spent, it does not get lapsed. Instead, it gets carried forward.
Additionally, a thirty percent section of the Gross Budget of the Centre also goes to the states with the Special Category Status.
Not only this, a state also receives huge concessions in duties and taxes. These include income tax, customs, corporate tax, and more.
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