Advantages of Special category status - Indian polity and Governance

Q.  Which of the following statements are correct?

1. The decision to grant special category status to States lie with the Finance commission.
2. Normal Central Assistance is split into 90% grants and 10% loans for special category states.
- Published on 12 Aug 15

a. Only 1
b. Only 2
c. Both
d. None

ANSWER: Only 2
 
The decision to grant special category status to States lie with the National Development Council. Normal Central Assistance 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.

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