The committee proposed a general meth od for allocating funds from the Centre to states based both on a state's development needs, as well as its past development performance, with the latter serving both to incentivize better performance as well as to allocate resources where they can be most beneficially used. The committee suggested that the development index be updated every five years and the performance index should reflect the change from the previous update.
The report reveals that the state, despite being a 'special category' state and given special attention by the Centre, continues to remain at the bottom of development. Of the 11 existing special category states, only Assam, Arunachal Pradesh and Meghalaya have again been identified as states that still need extra attention from the Centre to tread the path of development.
The other special category states like Himachal Pradesh, Jammu and Kashmir, Manipur, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand have been put in a better slot of 'less developed', while Uttarakhand is at the top bracket of 'relatively developed'.
The committee has presented a multi-dimensional index of backwardness based on 10 sub-components, which includes monthly per capita consumption expenditure, education, health, household amenities, poverty rate, female literacy, per cent of SC-ST population, urbanization rate, financial inclusion and connectivity.
Accordingly, the committee has recommended that states that score 0.6 and above on the index may be classified as 'least developed'; states that score below 0.6 and above 0.4 may be classified as 'less developed'. States that score below 0.4 may be classified as 'relatively developed'.
The committee has recommended that 'each state 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. Such a minimum share will be especially important for the relatively small NE states, which are politically very sensitive.'
The committee adds that its twin recommendations of the basic allocation of 0.3 per cent of overall funds to each state and the categorization of states that score 0.6 and above as 'least developed' states, along with the allocation methodology, effectively subsume what is now 'special category.'
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFHYh0SnTaGeu50TU3tAkd88oRLPA&url=http://timesofindia.indiatimes.com/city/guwahati/Assam-among-10-least-developed-states-Panel/articleshow/23117187.cms
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