‘Link funds to States’ perfomance’

NITI Aayog Vice Chairman Rajiv Kumar on Sunday pitched for building ‘performance indicators’ for devolution of funds to States.

Mr. Kumar also said that while fiscal irresponsibility is bad, “fiscal fetish” is also not desirable and a delicate balance has to be maintained.

“I think it is clear that these (devolution of funds) criteria have to include some performance-based criteria. And, therefore, those States which have done better in certain performance should not be punished.

”...I think it is better deal now to start [the] process of building some performance indicators for the devolution of funds and then increase it in a phased manner,” he said.

Mr. Kumar’s observations come in the backdrop of some States expressing disquiet about the terms of reference of the 15th Finance Commission to decide on the sharing of tax resources between the Centre and the States.