Provide fresh ideas to Finance Commission, PM tells states

NEW DELHI: Prime Minister Narendra Modi today asked state Governments to provide “fresh ideas” to the 15th Finance Commission for incentivising outcome-based allocations even as some southern states have expressed concerns about its Terms of Reference (ToR).

He made the suggestion at the fourth meeting of the Niti Aayog’s Governing Council attended by 23 chief ministers and one Lt Governor, besides several union ministers.

“He (Prime Minister) encouraged states to give fresh ideas to the Finance Commission, for incentivising outcome-based allocations, and expenditure correction,” said a release of the Prime Minister’s Office.

Some southern states, including Andhra Pradesh and Kerala, have been protesting against the ToR of the Finance Commission saying it would adversely affect the performing states in terms of devolution of funds from the Central Government. (AGENCIES)