Source: Unheeded advice: The time has come for the Governor’s role to be reconsidered (The Hindu, November 23, 2023)
- Article 200 and Legislative Bills: Article 200’s stipulations concerning the Governor’s assent to legislation have increasingly been subjected to intense examination. The original intent—drawn from the Constituent Assembly debates—was to tether the granting or withholding of assent to the collective wisdom of the Council of Ministers.
- Supreme Court’s Authoritative Decision: The precedent of Governors unilaterally acting, specifically in reserving Bills for the President, necessitates a decisive interpretation by the Supreme Court. This will mitigate the exploitation of constitutional grey areas by uncooperative Governors.
- Withholding Assent: A Definitive Act?: The question remains whether withholding assent equates to a Bill’s outright rejection or if this necessitates additional action such as requisitioning the legislature to reconsider the Bill as implied by the first proviso to Article 200.
- Respecting the ‘Aid and Advice’ Clause: The tension between the ‘aid and advice’ clause fundamental to parliamentary democracy and the clauses granting discretionary powers to Governors calls for a serious reassessment, ensuring that Governors align more faithfully with the spirit of parliamentary counsel.
Related Reaing: Governor’s Role And Controversy
Bihar’s Demand for Special Category State
Source: Why is Bihar demanding the Special Category Status? (The Hindu, November 27)
On November 22, the cabinet headed by Chief Minister Nitish Kumar adopted a resolution, advocating for the Special Category Status (SCS) to be conferred upon Bihar. This appeal is set against the latest insights from the “Bihar Caste-based Survey, 2022,” which has brought to light that approximately 33% of the state’s populace is still enduring conditions of poverty.
What is a Special Category Status?
It is a classification granted by the Centre to assist the development of States that face geographical or socio-economic disadvantages. The SCS was introduced in 1969 on the recommendation of the fifth Finance Commission (FC).
Five factors such as (i) hilly and difficult terrain (ii) low population density and/or sizeable share of tribal population (iii) strategic location along international borders (iv) economic and infrastructural backwardness and (v) non-viable nature of state finances, are considered before granting SCS.
In 1969, three States — Jammu & Kashmir, Assam and Nagaland — were granted the SCS. Subsequently, eight more States including Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand were given the SCS by the erstwhile National Development Council.
Central Assistance and Financial Allocation
- Grant Allocation Changes: With the dissolution of the Planning Commission, the Gadgil-Mukherjee formula, which had previously ensured about 30% of central assistance for Special Category Status (SCS) States, was replaced. The move to subsume this aid within the overall divisible pool of funds has coincided with an increase in the devolution percentage to 41%.
- Favourable Centre-State Funding Ratio: SCS States benefit from a highly favourable Centre-State funding ratio for centrally sponsored schemes. The ratio of 90:10 is significantly better than the typical 60:40 or 80:20 offered to general category States.
Economic Incentives for SCS States
- Tax Concessions: SCS States enjoy considerable economic incentives. They are subject to reduced customs and excise duties, and benefit from lower income and corporate tax rates.
- Investment Promotion: These financial incentives are designed to attract investments and encourage the establishment of new industries, driving economic growth within SCS States.
Assessing Bihar’s Plea for Special Category Status
- Criteria Compliance for SCS: Bihar fulfils numerous prerequisites for obtaining Special Category Status (SCS), with its main shortfall being its geographical profile. The criterion concerning hilly and difficult terrain—which is fundamental for justifying infrastructural development challenges—is where Bihar does not qualify.
- Alternatives to SCS: In 2013, the Committee led by Raghuram Rajan acknowledged Bihar as one of the least developed states. It proposed a paradigm shift in fund allocation through a ‘multi-dimensional index’. This method could be considered as an alternative means to alleviate the state’s developmental bottlenecks.