NEW DELHI: In an apparent admission that Central fund flow to states is leading to inequities, the Economic Advisory Council (EAC) to Prime Minister in its second meeting has formulated course correction to incentivise states for achieving health, education and social inclusion outcomes.
“The EAC to PM in its second meeting formulated far reaching recommendations to guide evolving framework for the Fifteenth Finance Commission, including incentivisation of states for achieving health, education and social inclusion outcomes,” said a senior official.
The New Indian Express had reported on November 1 that a NITI Aayog sponsored report had flagged off growing inequities among states. The report had stated that there had been a trend of increasing inequalities in infrastructure levels and human development causing divergence of incomes across different states.
The report had advocated that the Centre should evolve appropriate guidelines for the 15th Finance Commission, which would soon be set up, to address the anomalies in fund allocations to states.
The Council is also evolving the design of a new Economy Tracking Monitor, linking economic growth indicators with social indicators for last mile connectivity.
Additionally, the Economic Advisory Council to PM sought to pay attention to the issue of job creation amidst reports that there had been job losses on account of demonetisation.
The advisory panel also deliberated on ways to transform the gold market of the country in a bid to enhance employment prospects.
The EAC to PM is headed by NITI Aayog Member Bibek Debroy, besides part-time members Surjit Bhalla, Rathin Roy, Ashima Goyal, and Shamika Ravi.