Special Status Demand for Bihar and Andhra Pradesh: What it is and Why it Remains Key for NDA Allies in Modi 3.0

However, the coalition form often has its own plays. Both Andhra Pradesh and Bihar have demanded the ‘Special Category Status’ (SCS) and have been quite persistent on the same. Yet some crisscrossed lines make the ‘Special Category Status’ rule quite blurry, here is all you need to know about what is SCS and why both states are demanding the same.What is ‘Special Category Status?’Special Category Status (SCS) is often granted to states that are economically and geographically disadvantaged and need a boost to their development. Even though it’s not directly mentioned in the Constitution, there’s a provision for it. Back in 1969, Jammu and Kashmir was the first state to be granted a SCS, under the recommendations of the Fifth Finance Commission.Which states have the ‘Special Category Status?’After J&K received the special status, multiple other states followed a similar trail. A total of 11 states, namely Assam, Nagaland, Himachal Pradesh, Manipur, Meghalaya, Sikkim, Tripura, Arunachal Pradesh, Mizoram, Uttarakhand, and Telangana, have been granted the special category status.However, later the 14th Finance Commission removed the ‘special category status’ for most states, except for those in the Northeast and three hill states. Instead, it proposed to bridge the resource gap in these states by increasing tax devolution to 42 per cent.Why Bihar and Andhra Pradesh are asking for SCS?The special category status comes with its own benefits and financial perks. If a state is granted the ‘Special Category Status,’ the Central government covers 90 per cent of the expenses for centrally-sponsored schemes, leaving the state to chip in just 10 per cent. Usually, other states have to manage with a 60:40 funding split, where 60 per cent comes from the Central government.On top of that, Special Category states receive tax and duty exemptions, including customs, income tax, and corporate tax. They are also allocated a 30 per cent share of the Centre’s Gross Budget.

Buy cryptocurrency

Source link

Refer And Earn Demat Account – Get ₹300 | Referral Program

Open Demat Account In Angel One For FREE