Special Category Status

Choose the Correct Answer

Correct Answer : Option c

Explanation
Context: Recently, Bihar and Andhra Pradesh have renewed their demand for Special Category Status (SCS) from the Central Government, citing issues of economic backwardness, natural disasters, and infrastructural deficits. The demand is particularly strong in Andhra Pradesh, which was promised SCS during the bifurcation in 2014, but the status has not been granted formally.

Statement 1 is correct: The concept of Special Category Status was introduced in 1969 based on the recommendations of the Fifth Finance Commission. Special Category Status (SCS) was first introduced in 1969 when the Fifth Finance Commission recommended it to address the unique developmental needs of certain states. Jammu & Kashmir was the first state to be granted SCS, followed by others like Assam and Nagaland.
The criteria included: hilly terrain, low population density, strategic location, economic and infrastructural backwardness, and non-viable finances.

Statement 2 is correct: There is no mention of "Special Category Status" in the Constitution of India. It is an administrative classification evolved through Planning Commission guidelines, Finance Commission recommendations, and Central government decisions, not a constitutional or legal category. SCS status is mostly relevant for central funding patterns and tax devolution, and is now largely obsolete after the 14th Finance Commission, which recommended doing away with such classification.