Weekly Current Affairs

NITI Aayog ruled out special status to Andhra Pradesh: Venkaiah [Governance]

  • The Centre was almost prepared to grant the Special Category Status (SCS) to Andhra Pradesh but two factors dissuaded it from going ahead — clamour from nine more States for the same tag and NITI Aayog ruling out the possibility.
  • NITI Aayog ruled it out citing the 14th Finance Commission report that had made it clear that it would not make any distinction between special and general category States.
  • It took into account disabilities arising out of constraints unique to each State to arrive at expenditure needs and recommended filling of resource gaps mainly through increased tax devolution.
  • Where devolution was not able to cover the assessed gap, it had recommended post-devolution grants for revenue deficit and the Centre has agreed to take that responsibility in the case of AP spread over five years.