Consider the following statements The 39 special category status 39 for states done away with by the...........

Rajasthan Polity and Governance

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Consider the following statements:

The 'special category status' for states done away with by the 13th Finance Commission.
The same was retained for the Northeastern and three hill states.
Instead, resource gap of each state was to be filled through ‘tax devolution’, with the Centre urged to increase the states' share of tax revenues from 32% to 42%, which has been implemented since 2015.

Which of the above statements is/are correct?

1,2 and 3

1 and 2 only

2 and 3 only

1 and 3 only

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Explanation:

Special category status is a classification given by the Centre to assist development of states that face geographical and socio-economic disadvantages.

It was based on the Gadgil formula.

This classification was done on the recommendations of the Fifth Finance Commission in 1969.

Special category status was first accorded in 1969 to Jammu and Kashmir, Assam and Nagaland.

Since then eight more states have been included (Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura and Uttarakhand).

The 14th Finance Commission has done away with the 'special category status' for states, except for the Northeastern and three hill states.

Instead, it suggested that the resource gap of each state be filled through ‘tax devolution’, urging the Centre to increase the states' share of tax revenues from 32% to 42%, which has been implemented since 2015.