Performing states not to be penalised by 15th Fin Com: Naidu

Performing states would not be penalised by the 15th Finance Commission while allocating funds as a mechanism has been devised to incentivise them, Rajya Sabha Chairman M Venkaiah Naidu said today.

Naidu made the statement in the Rajya Sabha when AIDMK MP V Maitreyan, making a special mention, asked the government to direct the Finance Commission to take 1971 census as basis of allocation of fund to Tamil Naidu and other southern states.

The Chairman said he had a meeting with the Commission Chairman who had assured him that they would be adopting a formula to incentivise the performing states.

"As the Chairman of the Rajya Sabha/Council of states, when I saw this news item, I had called the Chairman of the Finance Commission and also members to my chambers and we had discussed it. They assured me that performing states will not be penalised at all under it," said Naidu.

He said thed panel would adopt "a formula of incentive and disincentive and that's the broad approach, which they have told me."