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LATEST NEWS UPDATES | Panel starts work on definition of backward states-Sidhartha

Panel starts work on definition of backward states-Sidhartha

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published Published on May 29, 2013   modified Modified on May 29, 2013
-The Times of India


NEW DELHI: The expert panel to decide the new yardstick for backward states, meant to benefit states such as Bihar, kicked off discussion on Tuesday with committee members looking at possible parameters.

Sources present in the meeting said some historical and social indicators were discussed but talks were exploratory. "It was a broad discussion. It will take a few more sittings to come to any conclusion," said Asian Development Research Institute's Shaibal Gupta, who is seen as a key member of the panel given his support to the demand for special status for Bihar.

The need for an overhaul of the current mechanism, which focuses on geographical location as the main criteria for providing special grants and tax concessions, was necessitated by repeated demands from Bihar chief minister Nitish Kumar, who has made grant of special tag to the eastern state a pre-condition for political support.

Sources said the finance ministry on Tuesday made a detailed presentation of the assistance and grants that are given to states based on the recommendations of the Finance Commission and the Planning Commission's Backward Region Grants Fund.

The panel, headed by chief economic advisor Raghuram Rajan, is expected to look at close to 10 parameters, including health and literacy, before arriving at the new definition of backwardness. Apart from Bihar, Uttar Pradesh, West Bengal and Odisha are expected to gain from the exercise.


The Times of India, 29 May, 2013, http://timesofindia.indiatimes.com/india/Panel-starts-work-on-definition-of-backward-states/articleshow/20320446.cms


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