This refers to the editorial "Bending over backwards" (September 30). The allocation of funds among states was always controversial since it was biased by political considerations. It appears that the Raghuram Rajan panel appointed by the government has not solved it. In fact, it has created some surprises by dividing states into three categories - least developed, less developed and relatively developed. Gujarat falls in the least developed category, while Bihar and Uttar Pradesh may benefit. While poor states need support, the better performing states need rewards and encouragement. Why should there be three categories? Instead, all the states can be ranked on the same principle and weight.
The categorisation should not lead to perpetual backwardness. The competition to be backward should end. Instead, the competition to be forward has to take over. Fund allocation could be based on projects and their implementation. Though the panel report came when Raghuram Rajan was an economic advisor to Government, will he reconsider and revise it as Reserve Bank Of India governor?
Jacob Sahayam, Thiruvananthapuram
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