Special Package for Andhra instead of Special Category Status

Tags: National News

• The central government has extended a special financial package in place of the Special Category Status (SCS) to Andhra Pradesh.

• The Special Assistance Measure to the successor State of Andhra Pradesh was extended, keeping in mind-

• The obligation arising from the Andhra Pradesh Reorganisation Act, 2014

• The recommendations of the Finance Commission

• NITI Aayog, report on ‘Developmental support to the successor State of Andhra Pradesh under Andhra Pradesh Reorganisation Act, 2014’ 

• The special assistance measure would provide for the additional Central share the State might have received between the 2015-­16 and the 2019­-20 financial year, if the funding of Centrally Sponsored Schemes (CSS) had been shared in the ratio of 90:10 between the Centre and the State.

• The Special assistance would be provided by way of repayment of loan and interest for the Externally Aided Projects (EAP) approved during the above period.

Special Category Status (SCS) 

• It is a classification given by the Centre to assist the development of states that face geographical and socio-economic disadvantages.

• SCS was first accorded in 1969 to Jammu and Kashmir, Assam, and Nagaland. 

• There is no provision of SCS in the Constitution.

• It was granted in the past by the National Development Council (NDC)

• The 14th Finance Commission has done away with the 'special category status’ for states, except for the Northeastern and three hill states.

National Development Council (NDC)

• It is the apex body for decision creating and deliberations on development matters in India, presided over by the Prime Minister. It was set up on 6 August 1952.NDC has been proposed to be abolished. But to date, no resolution has been passed to abolish it. Since the inception of NITI Aayog's Governing Council (which has almost the same composition and roles as NDC), the NDC has had no work assigned to it nor did it have any meetings