Broad accord on Central aid to States
New Delhi: Broad agreement was reached at today’s meeting of the National Development Committee composed of State Chief Ministers and members of the Planning Commission, on certain criteria for the allocation of Central assistance to States.
The Meeting, however, could not arrive at any decision in fixing the quantum on a percentage basis for allocation based on population and other factors tomorrow.
It was agreed at the meeting that in delineating the principles for Central assistance, the per capita income of each State and the effort in raising resources in relation to the per capita income should be taken into consideration.
As regards special consideration for strategically situated border States, it was agreed that out of the total Central assistance earmarked for States, an amount should be given as block grant to these States. Only the balance will be distributed as assistance to States on the basis of other criteria.
A certain percentage of the assistance is also to be reserved for giving aid to States under special circumstances like floods, drought, sudden influx of population and other peculiar factors.
Another principle agreed to is that continuing schemes in a particular State will have to be taken into consideration when allotting aid.
In regard to big Central projects, it was noted that past investments in any State will be taken into account.
On the ticklish problem of fixing quantum of assistance based on population, there were very divergent views.