Part XXI of the Indian Constitution contains specific Articles connected to the allotment of temporary, special provisions for some states. These special provisions refer to the grant of specific amenities or facilities by the Central Government to earmarked states. This is aimed to help them develop at par with others.
The decision of issuing special provisions for some states is based on the unique Gadgil formula. This formula uses parameters like per capita income, population, tax and ongoing projects in the state. Based on these, it is deemed whether the state is eligible for special category status (SCS) or not.
Purpose of Providing Special Provisions for Some States
The objectives to grant special provisions for some states are:
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To support the development of certain states that are comparatively underdeveloped. The causes of underdevelopment are primarily governed by social, geographical, economic and political factors
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To provide added facilities to states that are infrastructurally backwards
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To safeguard the cultural identities and customs of tribals belonging to those states
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To provide financial assistance and greater grants-in-aid for industrial development
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To reinforce lawful decorum in the state
Criteria for Eligibility to Obtain Special Provisions
The National Development Council (NDC) is an administrative body of the Central Government. This Council decides on awarding special provisions for some states. The yardsticks to consider if a state is eligible for special provisions are
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Socio-economic backwardness
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Geographical limitations, for example, inaccessible terrains, like hilly areas
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Sensitivity of location, mainly along international borders
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Financial and infrastructural constraints
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Low population density
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Presence of a substantial percentage of tribal communities
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Unfeasible quantities of state finances
The Indian States with Special Provisions
The 5th Finance Commission in 1969 established special provisions for some states, granting them Special Category Status (SCS). The table below illustrates the Articles of the Constitution granting special provisions to these states.
Article |
States Concerned |
Special Provisions |
370 |
Jammu & Kashmir |
* Abrogated in 2019 * |
371 |
Maharashtra & Gujarat |
|
371A |
Nagaland |
|
371B |
Assam |
|
371C |
Manipur |
|
371D/E |
Andhra Pradesh and Telangana |
|
371F |
Sikkim |
|
371G |
Mizoram |
|
371H |
Arunachal Pradesh |
|
371I |
Goa |
|
371J |
Karnataka |
|
Perks of Receiving Special Provisions
There are a number of benefits associated with receiving special provisions. These can be utilised effectively in the improvement of the concerned states.
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90% of state expenditure funds are sponsored by the Central Government
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Provision of state loans at zero per cent rate of interest
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The amount left unspent after a financial year is carried forward and does not lapse
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Considerable cuts in income tax, GST and service tax
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Exemption from customs and excise duties
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Allocation of a sizeable amount of Central funds for state developmental projects
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Special waivers in the form of debt relief plans
Some Issues of Concern Regarding Special Provisions
As much as it is aimed at the overall well-being, the grant of special provisions for some states also has its share of limitations.
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It raises uncomfortable questions regarding the status of equality in all states
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It may cause unnecessary tensions, disturbing the united fabric of the country
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The states granted special provisions may feel a sense of alienation or discrimination
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The benefits may not always be delivered as promised
It leads to other states demanding special provisions also, leading to disharmony.
Conclusion
The idea of granting special provisions for some states originated in 1969. Since then, there has been a lot of development in the states that come under this special category. It has led to the uniform progress of these states in education, employment, preservation of customs, and overall inclusive development.The Constitution of India does not have any provision of a “special category state”. But amendments to certain Articles have created opportunities for granting these provisions. The main intention should be to uplift and promote actual development to make all states at par.