Special category status

Current Context : Recently, Bihar and Andhra Pradesh’s government demanded for special category status.

ABOUT SPECIAL CATEGORY STATUS (SCS)

• Special Category Status is a classification granted to some states by the Centre to assist development, based on geographical and socio-economic disadvantages.
• It was introduced in 1969 on the recommendation of the Fifth Finance Commission.
• Currently, 11 States in India have SCS.
  • Arunachal Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
• SCS States receive Centre-State funding from centrally sponsored schemes in the ratio of 90:10, which is more favourable than general category States.
• They also receive other benefits like tax concessions etc.