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NK Singh, Chairman of the 15th Finance Commission, on Monday said the panel may consider providing incentives to States that have managed to achieve the objective of population control while distributing resources between Centre and States.
If considered, this could well be a departure from the earlier practice, which used data from the 1971 Census. The 15th Finance Commission’s terms of reference stipulate that data should be used from the 2011 census. This has been objected by some States, which have achieved progress in controlling population over the years.
“We have to abide by the terms of reference given by the President...We may consider incentivising those States that have achieved good progress in demographic management,” Singh said at an interactive session organised by the Indian Chamber of Commerce here.
According to him, nothing in the Finance Commission prevents from according weightage to population which “awards efficiency and promotes equity”.
It is to be noted that the 14th Commission had, after examining various factors to represent demographic changes, chosen population figures of 2011 and assigned 10 per cent weightage in addition to the 17.5 per cent weightage given to the 1971 population data.
The recommendations of the current commission will be applicable for a period of five years from April 1, 2020.
Meanwhile, managing stressed corporate debt situation would be central to rekindling growth momentum, Singh said.
“The problems (of corporate debt situation) look to be ‘quite large’ and need to be dealt with expeditiously,” he said.
To achieve 8-9 per cent growth trajectory the country would need much larger investment savings ratio. Household savings need to be enhanced and corporate debt brought down, he added.
To meet Mamata
The Commission, which is on a three-day visit to West Bengal starting Monday, will have discussions with Chief Minister Mamata Banerjee and other State government officials. Singh met with the different political parties of the State on Monday.
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