Lok Sabha Question No. 3416 (UNSTARRED), answered on 2017-03-22
Subject: Regional Disparity
Ministry: PLANNING
Asked by: A.P. JITHENDER REDDY

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA UNSTARRED QUESTION   NO.  3416 TO BE ANSWERED ON 22-03-2017

## REGIONAL DISPARITY

## 3416.  SHRI A.P. JITHENDER REDDY:

Will the Minister of PLANNING be pleased to state:

- (a) whether according to a new study the regional disparity  has been growing  over the years;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether development clusters, combinations of quality service delivery and high per capita income are emerging more among the developed States leaving behind the less-developed States;
- (d) if so, the details thereof; and
- (e) the measures undertaken by the Government to address the aforementioned problems and bridge the growing gap between States?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MINISTRY OF PLANNING AND MINISTER OF STATE FOR MINISTRY OF URBAN DEVELOPMENT AND MINISTRY OF HOUSING & URBAN POVERTY ALLEVIATION

## (RAO INDERJIT SINGH)

- (a) to (d) The sub-continental dimensions of India,  with inherent differences in geographical parameters  and  historical  developments,  have  led  to  regional    disparities    in  the  levels  of development  of  different  areas,  owing  to  the  differences  in  resource  endowment,  levels  of infrastructure  and  socio-economic    parameters.  Several  studies  have  also  been  undertaken  by Economic Institutions/Academicians/Researchers etc. An article titled 'Governance performance of Indian States' authored by 3 academicians has been found to be published in Economic and Political Weekly in its 3 rd September, 2016 edition.

This article has claimed   to have   considered only five sets of criteria i.e. infrastructure, social services, fiscal performance, justice- law and order and quality of the legislature to analyse the Governance performance of Indian States. In this  Article, it  has  been assessed that the ranking in respect of infrastructure delivery, social services delivery, fiscal performance delivery,  justicelaw and order and  quality of legislature rank has undergone quite a few changes in the top & bottom ranks but in respect of  overall Governance performance Index, the rankings have been  broadly the same. This Article has also highlighted that after adjusting for the level of development, some of the less developed States like Bihar and Chhattisgarh have moved up quite significantly in the service delivery ranking.

(e) In view of the background of Regional Disparities,   the   Union Government's aim   has been  to  promote  inclusive  and  balanced  growth.  The    Government  has  already  accepted  the recommendations of the Fourteenth Finance Commission (FFC) for  increasing the share of the States in the net proceeds of Union taxes which has significantly been enhanced from 32% to 42% which is  the biggest ever increase in vertical tax devolution/ Share of  States in the  central divisible pool. Development of   States is  primarily the responsibility  of the  State Governments concerned. The States have been implementing their own   schemes to address specific development needs to bridge intra-state and inter-state disparities.

Further, as per the recommendations of the Sub-Group of Chief Ministers and consultations with various Ministries/Departments and other stakeholders, Government of India has decided to rationalize   the existing 66 Centrally Sponsored Schemes (CSS) into 28 Umbrella Schemes. The funding  pattern  for 8 North Eastern States and Himalayan States of  Uttrakhand, Himachal Pradesh and Jammu and Kashmir has been kept at Centre :90% and State 10% whereas for the  rest of the States this ratio has  been kept at   Centre : 60% and State: 40% for Core CSS.  Also, the  flexifunds available in each  CSS has been raised from the  current level of 10% to 25% for States and 30% for UTs of the  overall annual allocation under each Scheme so that the implementation can be better attuned to the needs of individual State/UTs.

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