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Special Category Status:
=> Special Category Status (SCS) is a classification given by Centre to assist in the development of those states that face geographical and socio-economic disadvantages like hilly terrains, strategic international borders, economic and infrastructural backwardness, and non-viable state finances.
Special category status - Historical background:
=> The concept of a special category status was first introduced in 1969 when the fifth Finance Commission sought to provide certain disadvantaged states with preferential treatment.
=> Form of central assistance and tax breaks, establishing special development boards, reservation in local government jobs, educational institutions, etc.
=> This formula was named after the then Deputy Chairman of the Planning Commission, Dr Gadgil Mukherjee and is related to the transfer of assistance to the states by centre under various schemes.
=> The 14th Finance Commission effectively removed the concept of special category status after its recommendations were accepted in 2015.
=> So Gadgil Mukherjee formula is no longer valid.
Still many benefits are passed by the centre to states that were earlier categorised under special category status. Like-
1. Centrally-sponsored schemes:
2. 30 percent of the Centre's gross budget also goes to special category states.
3. Concession on excise duty to attract industries to the state.
=> Sivasagar MLA Akhil Gogoi’s questioned the government on impact of cessation of Special Category Status to Assam in Assam Assembly’s winter session.
=> State Finance Minister Ajanta Neog told the Assam Legislative Assembly that the change in the special category status to Assam is just a change of nomenclature and the State has not suffered financially due to this.
By: ASRAF UDDIN AHMED ProfileResourcesReport error
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