Parliament & State legislatures

The Special Category Status (SCS) is a classification given by the central government of India to assist states that face geographical and socio-economic disadvantages. States with SCS receive preferential treatment in the form of central assistance for development programs, tax concessions, and other financial benefits.

The increasing demand for SCS by various states can be attributed to several factors:

1. Fiscal Imbalance: Many states, particularly in the North-Eastern and hilly regions, face severe fiscal constraints due to their geographical disadvantages, limited resources, and higher costs of infrastructure development. They believe that SCS can help address this fiscal imbalance and accelerate their development.
2. Political Factors: The demand for SCS often has political undertones, with regional parties and state governments using it as a bargaining chip to exert pressure on the central government and gain more autonomy and resources.
3. Perceived Inequality: States that do not have SCS often feel that they are being treated unfairly and are not receiving their fair share of resources and attention from the central government.

The increasing demand for SCS can lead to center-state strife in the following ways:

1. Conflicts over Resource Allocation: The central government has limited resources, and the allocation of these resources among states with and without SCS can become a point of contention, leading to political tensions and conflicts.
2. Weakening of National Unity: The differential treatment of states based on SCS can be perceived as a violation of the principle of cooperative federalism and may contribute to a sense of regional disparities, potentially undermining national unity.
3. Negotiation Challenges: The central government may be reluctant to grant SCS to more states due to the fiscal implications, leading to prolonged negotiations and disputes between the center and the states.
4. Legal Challenges: Some states may even approach the courts to seek legal redress for their demands, further complicating the center-state relationship.

To address these challenges, the central government and the states need to engage in constructive dialogue, focusing on developing a more equitable and transparent system of resource allocation. This may involve revisiting the criteria for granting SCS, exploring alternative mechanisms for supporting development in disadvantaged regions, and strengthening the overall framework of cooperative federalism.