What is the Background?
Special Category Status (SCS) is a classification given by the Central Government to assist in the development of those states that face a geographical and socio-economic disadvantages. The classification came into existence in 1969 as per the suggestion given by the Fifth Finance Commission. The criteria that include for a state to receive the SCS is as follows:
- Low resource base, hilly & difficult terrain
- Low population density or sizable share of tribal population
- Backwardness, border states/sharing the international border
- Economic & infrastructural backwardness
- Non-viable nature of state finances
A total of 11 states have been granted the Special Category Status, based on the Gadgil-Mukherjee formula, which has been revised over the years. These 11 states are Assam, Manipur, Mizoram, Meghalya, Tripura, Nagaland, Arunachal Pradesh, Uttarakhand, Sikkim, Himachal Pradesh, and Jammu and Kashmir.
The factors and weightage for the formula are taken into consideration as given below:
- Population (55%)
- Per Capita income (25%)
- Fiscal management (5%)
- Special problems (15%)
Apart from Andhra Pradesh, Bihar, Jharkhand, Odisha, Rajasthan and Chhatisgarh are also demanding special category status
Why is AP Demanding a Special Status?
During the AP-Telangana bifurcation process, the Special status issue was brought up by the government of Congress. The centre foresaw that Hyderabad, which was the centre of industrial and economic growth, would now become a part of Telangana after the split and hence would be taking away the backbone of the financial growth for Andhra. Thus, the then Prime Minister, Manmoham Singh, promised a Special Status to AP on the floor of the Parliament on February 2014 for 5 years. BJP, understanding that industrial strengthening takes more time, offered another 5 years of Special Status to AP in case it came to power following Congress.
The bifurcation took place on 2nd June 2014 and duly AP was put for consideration for Special Status Category. But after a lengthy research into the state’s demographic and operations, the National Development Council (NDC) passed the verdict that AP didn’t require a special status.
Since then, the state is vouching to the centre to revisit the decision as they got the bitter end of the bifurcation deal with almost Rs. 16,000 crore deficit budget and no immediate Capital or infrastructure.
Why is government not accepting the request?
Once the NDC ruled out Andhra Pradesh from Special Category Status, BJP has also agreed to the decision and gone ahead to say that it will support the State to raise the deficit budget but not actually give it the other features of the status. This is because not only AP but Bihar, Odisha, Jharkhand and Chhatisgarh are also contesting for the SCS. With 90 per cent of a special state’s expenditure on schemes to be borne by the Centre and 2016’s budget deficit as 3.9%, this puts a big hurdle for the government which is itself trying to get the nation back on track with respect to the economy. Also the Government believes that the 42% of the upper sect of the AP population can in fact row the boat of the other lower half of the state. Hence, the ministry is not inclined to give AP the status.
What is happening now?
After being silent for too long, the citizens of AP have now started voicing their thoughts on the issue. Even Telugu Film Industry actors have come forward for the cause, asking the government to take a speedy decision in favour od the SCS. Pawan Kalyan especially tweeted out for a peaceful musical protest regarding the same at R.K. Beach, Vizag. Many a politician and party leader are also asking the Telugu people to show unity and fight for their right like Jallikattu supporting Tamilians. The Chief Minister Chandra Babu Naidu, on the other hand, requested the people to avoid making this as a violent issue as Jallikattu. “I am tactfully and strategically going ahead. Have I compromised on anything? We have got special economic package akin to SCS, then why this fight now,” Chandrababu said.
It is agreed that Andhra Pradesh lost a lot during the split with Telangana and now has to start from scratch. But it is also true that the state is in fact much better off than the slums of Bihar or the tribal areas of Chhattisgarh. So while the state definitely needs help from the centre, it also has the power to stand up on its own feet in the coming years. It remains to be seen if the people of AP will solve this the right way or the rogue way.
