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"No one can ignore Odisha's demand. It deserves special category status. It is a genuine right," said Odisha Chief Minister, Naveen Patnaik, earlier this month. The Odisha State assembly has passed a resolution requesting special category status and their demands follow Bihar's recent claim for special category status. The concept of a special category state was first introduced in 1969 when the 5th Finance Commission sought to provide certain disadvantaged states with preferential treatment in the form of central assistance and tax breaks. Initially three states Assam, Nagaland and Jammu & Kashmir were granted special status but since then eight more have been included (Arunachal Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura and Uttarakhand). The rationale for special status is that certain states, because of inherent features, have a low resource base and cannot mobilize resources for development. Some of the features required for special status are: (i) hilly and difficult terrain; (ii) low population density 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. [1. Lok Sabha unstarred question no. 667, 27 Feb, 2013, Ministry of Planning] The decision to grant special category status lies with the National Development Council, composed of the Prime Minster, Union Ministers, Chief Ministers and members of the Planning Commission, who guide and review the work of the Planning Commission. In India, resources can be transferred from the centre to states in many ways (see figure 1). The Finance Commission and the Planning Commission are the two institutions responsible for centre-state financial relations.
Figure 1: Centre-state transfers (Source: Finance Commission, Planning Commission, Budget documents, PRS)
Planning Commission and Special Category The Planning Commission allocates funds to states through central assistance for state plans. Central assistance can be broadly split into three components: Normal Central Assistance (NCA), Additional Central Assistance (ACA) and Special Central Assistance. NCA, the main assistance for state plans, is split to favour special category states: the 11 states get 30% of the total assistance while the other states share the remaining 70%. The nature of the assistance also varies for special category states; NCA is split into 90% grants and 10% loans for special category states, while the ratio between grants and loans is 30:70 for other states. For allocation among special category states, there are no explicit criteria for distribution and funds are allocated on the basis of the state's plan size and previous plan expenditures. Allocation between non special category states is determined by the Gadgil Mukherjee formula which gives weight to population (60%), per capita income (25%), fiscal performance (7.5%) and special problems (7.5%). However, as a proportion of total centre-state transfers NCA typically accounts for a relatively small portion (around 5% of total transfers in 2011-12). Special category states also receive specific assistance addressing features like hill areas, tribal sub-plans and border areas. Beyond additional plan resources, special category states can enjoy concessions in excise and customs duties, income tax rates and corporate tax rates as determined by the government. The Planning Commission also allocates funds for ACA (assistance for externally aided projects and other specific project) and funds for Centrally Sponsored Schemes (CSS). State-wise allocation of both ACA and CSS funds are prescribed by the centre. The Finance Commission Planning Commission allocations can be important for states, especially for the functioning of certain schemes, but the most significant centre-state transfer is the distribution of central tax revenues among states. The Finance Commission decides the actual distribution and the current Finance Commission have set aside 32.5% of central tax revenue for states. In 2011-12, this amounted to Rs 2.5 lakh crore (57% of total transfers), making it the largest transfer from the centre to states. In addition, the Finance Commission recommends the principles governing non-plan grants and loans to states. Examples of grants would include funds for disaster relief, maintenance of roads and other state-specific requests. Among states, the distribution of tax revenue and grants is determined through a formula accounting for population (25%), area (10%), fiscal capacity (47.5%) and fiscal discipline (17.5%). Unlike the Planning Commission, the Finance Commission does not distinguish between special and non special category states in its allocation.
The Election Commission has announced the schedule for the election of the President of India. The last date for nominations is June 30, elections will be held on July 19, and counting will take place on July 22. The BJD and AIADMK have proposed the name of Mr. P.A. Sangma. The Samajwadi Party and Trinamool Congress have suggested three names. Other parties or alliances have not announced any contenders. Our calculations show that no single party or alliance has the numbers to unilaterally elect candidates of its choice. A candidate will need 5,48,507 votes to be elected as the President. If the UPA were to vote as a consolidated block, its vote tally would reach 4,49,847 (41% of the total votes). Among the Congress allies, Trinamool holds the largest number of votes (47,898). If Trinamool decides to support some other candidate, the UPA tally will fall to 4,01,949 votes (37% of the total). The votes held by the major alliances are given in the table below:
Coalition | Value of votes | Percentage of total votes |
UPA |
4,49,847 |
41.0% |
NDA |
3,03,912 |
27.7% |
Left |
52,282 |
4.8% |
Bahujan Samaj Party |
43,723 |
4.0% |
Samajwadi Party |
68,943 |
6.3% |
Biju Janata Dal |
30,215 |
2.8% |
AIADMK |
36,216 |
3.3% |
Others |
1,11,874 |
10.2% |
Total |
10,97,012 |
|
Minimum required to be elected |
5,48,507 |
|
A detailed break-up of votes held by each party is given in the table below:
Party | Value of votes | Percentage of total votes |
Indian National Congress |
3,31,855 |
30.30% |
Bharatiya Janata Party |
2,32,454 |
21.20% |
Samajwadi Party |
68,943 |
6.30% |
All India Trinamool Congress |
47,898 |
4.40% |
Bahujan Samaj Party |
43,723 |
4.00% |
Janata Dal (United) |
41,574 |
3.80% |
All India Anna Dravida Munnetra Kazhagam (AIADMK) |
36,216 |
3.30% |
Communist Party of India (Marxist) |
35,734 |
3.30% |
Biju Janata Dal |
30,215 |
2.80% |
Nationalist Congress Party |
24,058 |
2.20% |
Independent |
23,830 |
2.20% |
Dravida Munnetra Kazhagam (DMK) |
21,780 |
2.00% |
Telugu Desam Party |
21,256 |
1.90% |
Shiv Sena |
18,320 |
1.70% |
Shiromani Akali Dal |
11,564 |
1.10% |
Communist Party of India |
9,758 |
0.90% |
Rashtriya Janata Dal |
8,816 |
0.80% |
Others |
7,420 |
0.70% |
Janata Dal (Secular) |
6,138 |
0.60% |
Jammu and Kashmir National Conference |
5,556 |
0.50% |
Rashtriya Lok Dal |
5,412 |
0.50% |
Desiya Murpokku Dravida Kazhaga (DMDK) |
5,104 |
0.50% |
Jharkhand Mukti Morcha |
4,584 |
0.40% |
Muslim League Kerala State Committee |
4,456 |
0.40% |
Indian National Lok Dal |
4,068 |
0.40% |
All India Forward Bloc |
3,961 |
0.40% |
Jharkhand Vikas Morcha |
3,352 |
0.30% |
Asom Gana Parishad |
3,284 |
0.30% |
Telangana Rashtra Samiti |
3,044 |
0.30% |
Revolutionary Socialist Party |
2,829 |
0.30% |
Bodoland People's Front |
2,808 |
0.30% |
All India United Democratic Front |
2,796 |
0.30% |
Praja Rajyam Party |
2,664 |
0.20% |
Maharashtra Navnirman Sena |
2,275 |
0.20% |
Kerala Congress (M) |
2,076 |
0.20% |
All India Majlis-e-Ittehadul Muslimeen |
1,744 |
0.20% |
Nagaland People's Front |
1,722 |
0.20% |
Sikkim Democratic Front |
1,640 |
0.10% |
Peoples Democratic Party |
1,512 |
0.10% |
Bahujan Vikas Aaghadi |
1,058 |
0.10% |
Lok Janasakti Party |
957 |
0.10% |
All Jharkhand Students Union |
880 |
0.10% |
Haryana Janhit Congress |
820 |
0.10% |
Mizo National Front |
732 |
0.10% |
Marumalarchi Dravida Munnetra Kazhagam |
708 |
0.10% |
Swabhimani Paksha |
708 |
0.10% |
Viduthalai Chiruthaigal Katchi |
708 |
0.10% |
YSR Congress Party |
708 |
0.10% |
Peasants and Workers Party |
700 |
0.10% |
Pattali Makkal Katchi |
528 |
0.00% |
Manithaneya Makkal Katch |
352 |
0.00% |
Puthiya Tamilaga |
352 |
0.00% |
All India NR Congress |
240 |
0.00% |
J&K National Panthers Party |
216 |
0.00% |
Communist Party of India (Marxist-Leninist) |
176 |
0.00% |
United Democratic Party |
153 |
0.00% |
Lok Satta Party |
148 |
0.00% |
Loktantrik Samajwadi Party |
129 |
0.00% |
J&K Democratic Party Nationalist |
72 |
0.00% |
People's Democratic Front |
72 |
0.00% |
Uttarakhand Kranti Dal |
64 |
0.00% |
Maharashtrawadi Gomantak Party |
60 |
0.00% |
People's Party of Arunachal |
32 |
0.00% |
Total |
10,97,012 |
|
Notes: The electoral college for the Presidential election consists of the elected members of Lok Sabha, Rajya Sabha and all Legislative Assemblies. The winning candidate must secure at least 50% of the total value of votes polled. Each MP/ MLA’s vote has a pre-determined value based on the population they represent. For instance, an MP’s vote has a value of 708, an MLA from UP has a vote value of 208 and an MLA from Sikkim has a vote value of 7 (Note that all MPs, irrespective of the constituency or State they represent, have equal vote value). Parties in various coalitions: UPA: Congress, Trinamool, DMK, NCP,Rashtriya Lok Dal, J&K National Conference, Muslim League Kerala State Committee, Kerala Congress (M), All India Majlis-e-Ittehadul Muslimeen, Sikkim Democratic Front, Praja Rajyam Party, Viduthalai Chiruthaigal Katchi NDA: BJP, JD(U), Shiv Sena, Shiromani Akali Dal, Janata Party Left: CPI(M), CPI, Revolutionary Socialist Party, All India Forward Bloc