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Special Category States of India$
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Govind Bhattacharjee

Print publication date: 2016

Print ISBN-13: 9780199460830

Published to Oxford Scholarship Online: April 2016

DOI: 10.1093/acprof:oso/9780199460830.001.0001

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Introduction to the Special Category States

Introduction to the Special Category States

Chapter:
(p.1) Introduction to the Special Category States
Source:
Special Category States of India
Author(s):

Govind Bhattacharjee

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199460830.003.0001

This chapter discusses the genesis of the special category status. In doing so, it traverses the whole gamut of centre-state financial relations including the transfer of central resources to states through the Planning and the Finance Commissions and the constitutional issues involved therein, modes of plan assistance and evolution of the Gadgil formula. It discusses the subsequent distortions introduced into the formula based Gadgil transfers by the continued proliferation of centrally sponsored schemes and also the direct transfer of plan funds to implementing agencies of these schemes outside state budgets, which diluted and defeated the purpose of Gadgil transfers. The chapter concludes with a discussion on the arbitrariness of criteria devised by the Planning Commission for awarding the special category status.

Keywords:   Special Category Status, Planning Commission, Finance Commission, Gadgil Formula, Discretionary Transfers, Direct Transfers

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