What’s Special Status:
Most people today are not aware of Special Status to a State. Let’s see some things about Special Status and how it differs from Special Package.
Generally given by taking these points into consideration:
- Hilly and difficult terrain
- Low population density
- Strategic locations along the borders of the country
- Economic and infra backwardness
- Non-viable nature for state finances
- Preferential treatment in getting Central funds assistance
- Concession on excise duty, this attracts industries to the state
- Significant 30% of the Centre’s gross budget goes to the Special category states
- These states avail themselves of the benefit of debt swapping and debt relief schemes
- In centrally sponsored schemes and external aid special category states get it in the ratio of 90% grants and 10% loans, while other states get 30% of their funds as grants.
These States have the Special Status till date:
Hence, special-category status catalyses the inflow of private investments and generates employment and additional revenue to state. Since centre bears 90% of state expenditure on all centrally-sponsored schemes, state can take more welfare-based schemes from the new savings.