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Eleven economically backward hill states of India, sharing international boundaries, comprise the ‘Special Category States’. Being geographically isolated from the rest of the country, and lacking in resources, they suffer from various drawbacks. Economic growth in many of these states has also been stymied by prolonged phases of violent militancy.

To address their problems, these states have been awarded the ‘Special Category Status’ by the Centre, an extra-constitutional arrangement that gives them access to liberal central plan assistance. Under the existing provisions, which have a weak accountability structure, these states will permanently remain ‘special category states’, irrespective of their fiscal, financial, and socio-economic performance. Now that fresh demands are being raised by some states for this status, these issues are assuming increasing importance.

In this book, Bhattacharjee explores the reality of these states in the context of asymmetric federalism, going down to the roots of their backwardness. By analysing meticulously collected data, he evaluates their socio-economic progress as well as public financial management ever since the status was first awarded in 1969.

Contents: Preface. Introduction to the special category states. 1. Special category states in the framework of asymmetrical federalism in India. 2. Assam, Nagaland, and Jammu & Kashmir: the first special category states. 3. Institutional framework and policies for special category states. 4. Other northeastern states: Meghalaya, Manipur, Tripura, Mizoram, and Arunachal Pradesh. 5. Sikkim. 6. Himachal Pradesh. 7. Uttarakhand. 8. Evaluation of current socio-economic and developmental parameters of special category states. 9. Public finances of special category states. Conclusion: summary, discussions and a road map. Annexure: Impact of 14th finance commission recommendations on special category states. Bibliography. Index.