Special Category States: Demand for Additional Finance

Special Category States (SCS) in India seek additional financial assistance due to unique challenges like geographical disadvantages, socio-economic backwardness, and limited revenue-generating capacity. Addressing these demands is crucial for balanced regional development and national integration. Currently, 11 states have the SCS in the country including Assam, Nagaland, Himachal Pradesh, Manipur, Meghalaya, Sikkim, Tripura, Arunachal Pradesh, Mizoram, Uttarakhand, and Telangana.

Need for SCS

  • Geographical and Climatic Challenges: Hilly terrains and harsh climatic conditions make infrastructure development and maintenance more expensive and difficult.
  • Low Fiscal Capacity: These states have limited revenue-generating capacities due to their small industrial base and low tax collection, making ....
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