Consider the following statements : a. The Constitution does not include any provision for categorization of any State in India as a Special Category Status (SCS) State. b. The National Development Council first accorded SCS in 1969 to Jammu and Kashmir, Assam, and Nagaland. c. The Central Government pays 90% of the funds required in a centrally sponsored scheme to SCS category States as against 60% in the case of normal States. Which of the above statements is/are false? Correct Answer None of the above The correct answer is Only C. There is no Provision of SCS in the Constitution. The Central govt extends financial assistance to states that are at a comparative disadvantage against others. Hence statement a is true. Special Category state concept was coined in 1969 by the Gadgil committee. First SCS was accorded in 1969 to Jammu and Kashmir, Assam and Nagaland. Hence statement b is correct. The Central Government pays 90% of the funds required in a centrally sponsored scheme to SCS category States as against 60% in the case of normal States. Hence statement c is correct. Additional Information For scheme related fund 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. The allocation between nonspecial 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%)