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'Institutional vacuum exists in funds allocation to states'

Press Trust of India  |  Hyderabad 

: Former Y V Monday said that there is an institutional 'vacuum' with respect to the allocation of funds to states.

He said a formula based body like the Commission, appointed once in five years and dealing with only accounts, certainly is not an adequate institution to take care of the 'inequalities' among the state.

"More recently there is no There is some sort of replacement by NITI Aayog...it is not dealing with allocations to states. It is through individual ministries."

In a way there is an institutional vacuum with regard to allocation of states and union ministries have occupied the place, he said.

said there is virtually no institution which deals with distribution of transfers in aggregate, taking into consideration the requirements of all states.

was delivering a lecture at the Centre for Economic and Social Studies here.

The former RBI said the Commission does not address all the problems of inequalities as it does not function continuously.

To a query, he said the Centre would have to implement certain centrally sponsored schemes in either Union Territories or North Eastern States successfully before asking states to implement them.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 08 2018. 17:50 IST
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