Finance commission looks to categorize states in the three categories

Fifteenth Finance Commission Chairman N K Singh on Thursday said it would arrange states based on high, medium, and low development rate, considering their different development designs.


The commission is right now hooking on whether and on what elements can an assembly be accomplished, perceiving the huge heterogeneous development examples of various states.


In the Finance Commission today, we were talking about the task of development rates to various states with the end goal of time of my honor (2019-20 to 2024-25) and what are the components that go into certain states developing a lot quicker, is there a harmoniousness, is there no compatibility,” Singh said.

“We determined it was more practical to observe the categorization in 3 bands between the high growth rate, the middle growth rate, and low growth charge states. So, we are searching at what are the prompters of alternate which has resulted in this,” Singh stated.
India Policy Forum 2020 organized by National Council of Applied Economic Research (NCAER), he stated the resources devolved to states with low per-capita profits have no longer result in any evidence of convergence of the state.


He said in its interior working, the commission has thought that it was “reasonable” to classify the states in three classifications.

“We discovered it was increasingly reasonable to take a gander at the categorization in three groups between the high development rate, the center development rate and low development rate states. Thus, we are seeing what are the guides of progress which has brought about this,” Singh said.

Singh included that for the last 30-40 years, Finance Commissions utilized the old-style technique which is known as ‘adjustment recipe’.

Among the states, Punjab has displayed stagnation in its development patterns “which is very phenomenal”, he said.

“Perhaps it did not move out of agriculture… particularly the increase tendencies in Punjab have lagged appreciably behind even some of the historically poorer states like Bihar and Uttar Pradesh,” Singh added

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