Funds’ devolution: No intention to penalize states, says FC

AMARAVATI: The 15th Finance Commission on Thursday said there was “no intention” to penalize, in terms of devolution of funds, states that achieved better performance.

Finance Commission Chairman N K Singh said the Commission would have to give “further thought” to use of population criteria for central devolution, but maintained that it would “technically not” consider using a mix of census figures.

“I can see the apprehensions the states have on use of population criteria. We have been asked to use the later census figures,” he said.

The earlier FC had been asked to use the earlier census figures and they were obliged to do so, Singh said.

“However, in their (14th Finance Commission) recommendations, two things happened. First, they chose a mix of the two census figures of 2011 and 1971. If you are going to suggest to us if we would consider using a mix, technically perhaps not.

I am not ruling that out but the fact remains that we have been asked to use figures of the latest census. (AGENCIES)

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