New criteria for central help to states
Updated: Sep 26, 2013 03:50:51pm
New Delhi, Sept 26 (KNN) An expert committee has come out with a multi-dimensional index of backwardness which places Odisha at the bottom of the table while Goa, Kerala and Tamil Nadu are relatively developed states.
The index has been devised for determining the quantum of Central assistance to the states.
The indexation of backwardness has been done based on per capita consumption and poverty ratio.
The report for Evolving a Composite Development Index of States has been submitted to the Finance Minister P Chidambaram. The committee headed by Raghuram Rajan who has now become the RBI Governor, has recommended how the criteria may be reflected in future planning and devolution of funds from the Central Government to the states.
The index ranges from 0 to 1 with 1 being the most backward and 0 the least backward or the “relatively developed”, according to the committee.
Goa was scored 0.045 under relatively developed category by the panel, Gujarat 0.491 under less developed and Odisha 0.798 under the least developed states.
Using the index, the Committee has identified the “Least Developed” States as Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Meghalaya, Odisha, Rajasthan and Uttar Pradesh, the Finance Minister added.
The other states in the ‘relatively developed’ list include Punjab, Maharashtra, Uttarakhand and Haryana.
Chidamabaram informed in a statement that the committee has proposed a general method for allocating funds from the Centre to the States based on both a State’s development needs as well as its development performance.
The Committee has recommended that each State may get a fixed basic allocation of 0.3 per cent of overall funds, to which will be added its share stemming from need and performance to get its overall share.
The Finance Minister further informed that the Prime Minister had directed that the recommendations of the Committee may be examined and necessary action taken.
The Ministry of Finance, Department of Economic Affairs has been asked to examine the report and take necessary action, the Finance Minister added.
The other members of the committee were Shaibal Gupta, Bharat Ramaswami, Najeeb Jung, Nirija G Jayal, Tuhin Pandey. (KNN/SD)
The index has been devised for determining the quantum of Central assistance to the states.
The indexation of backwardness has been done based on per capita consumption and poverty ratio.
The report for Evolving a Composite Development Index of States has been submitted to the Finance Minister P Chidambaram. The committee headed by Raghuram Rajan who has now become the RBI Governor, has recommended how the criteria may be reflected in future planning and devolution of funds from the Central Government to the states.
The index ranges from 0 to 1 with 1 being the most backward and 0 the least backward or the “relatively developed”, according to the committee.
Goa was scored 0.045 under relatively developed category by the panel, Gujarat 0.491 under less developed and Odisha 0.798 under the least developed states.
Using the index, the Committee has identified the “Least Developed” States as Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Meghalaya, Odisha, Rajasthan and Uttar Pradesh, the Finance Minister added.
The other states in the ‘relatively developed’ list include Punjab, Maharashtra, Uttarakhand and Haryana.
Chidamabaram informed in a statement that the committee has proposed a general method for allocating funds from the Centre to the States based on both a State’s development needs as well as its development performance.
The Committee has recommended that each State may get a fixed basic allocation of 0.3 per cent of overall funds, to which will be added its share stemming from need and performance to get its overall share.
The Finance Minister further informed that the Prime Minister had directed that the recommendations of the Committee may be examined and necessary action taken.
The Ministry of Finance, Department of Economic Affairs has been asked to examine the report and take necessary action, the Finance Minister added.
The other members of the committee were Shaibal Gupta, Bharat Ramaswami, Najeeb Jung, Nirija G Jayal, Tuhin Pandey. (KNN/SD)
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