Special Category Status Debate: Non-Political Decisions Urged By Constitutional Bodies

Ashima Goyal, an RBI monetary policy committee member, urged that the issue of special category status (SCS) for Bihar and Andhra Pradesh should be decided on non-political grounds by a constitutional body. She also highlighted that the 14th Finance Commission had already ruled on the SCS states.

The contentious issue of granting special category status (SCS) to Bihar and Andhra Pradesh should be resolved based on non-political considerations by a constitutional body, according to Ashima Goyal, a member of RBI's monetary policy committee. Goyal emphasized on Monday that the 14th Finance Commission has already addressed the matter concerning SCS states.

Following the bifurcation of Andhra Pradesh in 2014, the state has sought special category status due to the ensuing revenue challenges as Hyderabad transitioned to becoming the capital of Telangana. Similarly, Bihar has pursued the special status since 2005, under Nitish Kumar's leadership, after experiencing revenue losses when mineral-rich Jharkhand was carved out in 2000.

Goyal stated, ''...the criteria for SCS are primarily for regions with hilly terrain, low population density, and development of vulnerable border areas, criteria not applicable to the two states.'' She also noted that the Centre contributes 90% of funds for centrally sponsored schemes in SCS states, compared to 60% in others, with the 14th Finance Commission ruling against the creation of new SCS states.