Earlier this year, the chief ministers of Bihar and Andhra Pradesh had demanded special financial packages for their respective states from the Centre. Special Packages for both states were announced in the Union Budget 2024-25. The issues catered in the package ranged from subjects like Irrigation, Flood Mitigation, Purvodaya: Vikas Bhi, Virasat Bhi, Airports, Medical Colleges, Sports Infrastructure, Highways, Industrial Corridors and Tourism development. Special Packages refer to the support provided to states facing geographical and socio-economic challenges, offering them additional financial assistance and other benefits. The Constitution of India has provisions that address the issues of specific states that have a special status with regard to certain matters mentioned therein.
On the contrary, special packages are purely discretionary. Article 282 empowers both Centre and the states to make any grants for any public purpose, even if it is not within their respective legislative jurisdiction. This miscellaneous financial provision has gone on to become the central pillar of financial transfers to states. The resurrection of coalition politics at the Union has brought discretionary grants, or ‘special packages’, back into public discourse. Special packages aim to address regional disparities and fulfill pressing needs in underdeveloped or resource – constrained regions. These packages are typically designed to uplift weaker states, touching upon multifarious socio economic and welfare issues. Special packages can help states tackle unique developmental challenges. For example, packages granted to northeastern states help address the geographical and infrastructural hurdles that restrict their growth.
All the views and opinions expressed are those of the author. Image Credit – Gokulam Seek IAS Academy.
About the Author
Abhishek Kumar Singh is a Civil Engineering graduate with related professional experience. As an aspiring civil servant, Abhishek has developed a keen interest in different domains of public policy with sustainability as the underlying concern. He keeps a tab on national and international events that might have potential implications for India and the world at large.
