Special Category States Of India : Issues Concerns and Challenges
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Eleven economically backward hill states of India, sharing international boundaries, comprise the ‘Special Category States’. Being geographically isolated from the rest of the country, and lacking in resources, they suffer from various drawbacks. Economic growth in many of these states has also been stymied by prolonged phases of violent militancy. To address their problems, these states have been awarded the ‘Special Category Status’ by the Centre, an extra-constitutional arrangement that gives them access to liberal central plan assistance. Under the existing provisions, which have a weak accountability structure, these states will permanently remain ‘special category states’, irrespective of their fiscal, financial, and socio-economic performance. Now that fresh demands are being raised by some states for this status, these issues are assuming increasing importance. In this book, Bhattacharjee explores the reality of these states in the context of asymmetric federalism, going down to the roots of their backwardness. By analysing meticulously collected data, he evaluates their socio-economic progress as well as public financial management ever since the status was first awarded in 1969.
Govind Bhattacharjee is Director General, Office of the Comptroller and Auditor General of India, New Delhi.