Question : Special Category Status

Will the Minister of PLANNING be pleased to state:

(a) whether the Union Government is contemplating to accord
Special Category Status to Andhra Pradesh;

(b) if so, the details thereof and if not, the reasons
therefor;

(c) whether the Union Government is contemplating to bring
amendments in the Andhra Pradesh Reorganisation Act 2014
(APR) on this issue; and

(d) if so, the details thereof and if not, the reasons
therefor?

Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING
AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(RAO INDERJIT SINGH)

(a) to (d): Special Category Status for plan assistance was granted in the past by the National
Development Council (NDC) to some States that are characterized by a number of features necessitating special consideration. These features included (i) hilly and difficult terrain (ii) low population density and / or sizeable share of tribal population (iii) strategic location along borders with neighbouring countries (iv) economic and infrastructural backwardness and (v) non-viable nature of state finances. Special Category Status was granted based on an integrated consideration of these criteria.

The Fourteenth Finance Commission has recommended the transfer to the States by devolution and grants-in-aid for the period 2015-20 which was accepted by the Central Government. The Fourteenth Finance Commission (FFC) in its recommendations has not made any distinction between General Category States and Special Category States in the horizontal distribution of shareable taxes amongst the States.

However, in the case of Andhra Pradesh, the Central Government has agreed to give a special assistance for Government of Andhra Pradesh for five years, which would make up for the additional Central share the State might have received during these years i.e, 2015-16 to 2019-20. This will be in the form of Central Government funding for externally aided projects for the state of Andhra Pradesh signed and disbursed during these years.
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