Fifth Finance Commission introduced SCS in 1969 giving
Jammu and Kashmir, Assam, and Nagaland additional Central assistance and
tax concessions.
The National Development Council (NDC) laid five guidelines to grant the status — hilly and difficult terrain; low population density or sizable share of tribal population; strategic location along borders with neighbouring countries; economic and infrastructural backwardness; and non-viable nature of State finances.
Eventually 8 more States were added to the list —
The SCS are allotted 30 per cent of Normal Central Assistance and the remaining 70 % is split among other States based on their population, per capita income and fiscal performance.
The SCS enjoy concessions in excise and customs duties and income tax rates.
In addition to this, the Plan panel may allot more funds to these States to carry out centrally-sponsored schemes (CCS) and special projects, if any.
The SCS will have to spend 10 per cent for CCS, while the rest will be borne by Centre
The National Development Council (NDC) laid five guidelines to grant the status — hilly and difficult terrain; low population density or sizable share of tribal population; strategic location along borders with neighbouring countries; economic and infrastructural backwardness; and non-viable nature of State finances.
Eventually 8 more States were added to the list —
- Arunachal Pradesh
- Himachal Pradesh
- Manipur
- Meghalaya
- Mizoram
- Sikkim
- Tripura and
- Uttarakhand.
The SCS are allotted 30 per cent of Normal Central Assistance and the remaining 70 % is split among other States based on their population, per capita income and fiscal performance.
The SCS enjoy concessions in excise and customs duties and income tax rates.
In addition to this, the Plan panel may allot more funds to these States to carry out centrally-sponsored schemes (CCS) and special projects, if any.
The SCS will have to spend 10 per cent for CCS, while the rest will be borne by Centre
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