Special Category Status (SCS)
8th October 2021

Special Category Status (SCS)

“Recently Bihar Government has asserted that it has not dropped the demand for Special Category Status to Bihar”

● Special category status is a classification given by the Centre to assist development of states that face geographical and socio-economic disadvantages.

● This classification was done on the recommendations of the 5th Finance Commission in 1969.

● It was based on the Gadgil formula.

The parameters for SCS were:

⮚ Hilly Terrain
⮚ Low Population Density And / Or Sizeable Share of Tribal Population
⮚ Strategic Location along Borders with Neighbouring Countries
⮚ Economic and Infrastructure Backwardness
⮚ Nonviable Nature of State finances

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