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LATEST NEWS UPDATES | Planning Commission cautions states against doling out freebies -Yogima Seth Sharma </title>
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-The Economic Times
NEW DELHI: Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked..."/>
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<h1 class="cat-box-title">Planning Commission cautions states against doling out freebies -Yogima Seth Sharma</h1>
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Published on</span><span class="text-date"> Jun 27, 2013</span>
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<div align="justify">-The Economic Times</div><p align="justify"><br /><em>NEW DELHI: </em>Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked them to focus on schemes related to infrastructure development.</p><p align="justify">"This year's message is basically that states must have much more efficient functioning of the inclusiveness scheme. Since a lot of the inclusiveness is impacted by development of the right kind of infrastructure and not just handout schemes, we have insisted that states focus on developing the right kind of infrastructure that can facilitate implementation of important schemes," a senior Planning Commission official told ET.</p><p align="justify">Citing instances of distribution of free laptops in Tamil Nadu, followed by Gujarat, Rajasthan, Odisha and UP, as well as free mobiles in Orissa, the official said that the issue has been taken up with all the states barring Uttar Pradesh while finalising their annual plans.</p><p align="justify">The annual plan for Uttar Pradesh, which has been distributing free laptops in the name of internet-based progressive education, will be finalised next month. It would then be handed out a stern message.</p><p align="justify">Handout schemes are always from the state fund, but the commission in its role in finalising the annual plans of the states has cautioned them about the impact of such schemes on their fiscal deficit. There is a very thin line between development expenditure and such handout schemes.</p><p align="justify">For instance, distribution of free laptops has a social benefit attached to it and will also benefit companies manufacturing laptops. So the centre or the Planning Commission for that matter cannot and would not like to oppose these schemes upfront but they can always advice the states to focus on inclusive growth.</p><p align="justify">"Though states agree that the infrastructure development is the need of the hour, some take pride in handout schemes, which are not good," the official added.</p><p align="justify">Tamil Nadu was the first state to distribute free laptops after AIADMK's J Jayalalithaa was sworn in as the chief minister for the third time in May 2011. The state had earmarked Rs 10,200 crore for distributing 68 lakh laptops in five years.</p><p align="justify">Seeing the popularity of the scheme, the Pradesh Congress Committee in Gujarat, the Naveen Patnaik government in Odisha and Samajwadi Party announced similar schemes in their election manifesto to woo the youth. Even the Rajasthan Board of Secondary Education earmarked Rs 70 crore for distributing 44,000 laptops to meritorious students across different states. </p>
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LATEST NEWS UPDATES | Planning Commission cautions states against doling out freebies -Yogima Seth Sharma </title>
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NEW DELHI: Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked..."/>
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<h1 class="cat-box-title">Planning Commission cautions states against doling out freebies -Yogima Seth Sharma</h1>
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Published on</span><span class="text-date"> Jun 27, 2013</span>
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<div align="justify">-The Economic Times</div><p align="justify"><br /><em>NEW DELHI: </em>Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked them to focus on schemes related to infrastructure development.</p><p align="justify">"This year's message is basically that states must have much more efficient functioning of the inclusiveness scheme. Since a lot of the inclusiveness is impacted by development of the right kind of infrastructure and not just handout schemes, we have insisted that states focus on developing the right kind of infrastructure that can facilitate implementation of important schemes," a senior Planning Commission official told ET.</p><p align="justify">Citing instances of distribution of free laptops in Tamil Nadu, followed by Gujarat, Rajasthan, Odisha and UP, as well as free mobiles in Orissa, the official said that the issue has been taken up with all the states barring Uttar Pradesh while finalising their annual plans.</p><p align="justify">The annual plan for Uttar Pradesh, which has been distributing free laptops in the name of internet-based progressive education, will be finalised next month. It would then be handed out a stern message.</p><p align="justify">Handout schemes are always from the state fund, but the commission in its role in finalising the annual plans of the states has cautioned them about the impact of such schemes on their fiscal deficit. There is a very thin line between development expenditure and such handout schemes.</p><p align="justify">For instance, distribution of free laptops has a social benefit attached to it and will also benefit companies manufacturing laptops. So the centre or the Planning Commission for that matter cannot and would not like to oppose these schemes upfront but they can always advice the states to focus on inclusive growth.</p><p align="justify">"Though states agree that the infrastructure development is the need of the hour, some take pride in handout schemes, which are not good," the official added.</p><p align="justify">Tamil Nadu was the first state to distribute free laptops after AIADMK's J Jayalalithaa was sworn in as the chief minister for the third time in May 2011. The state had earmarked Rs 10,200 crore for distributing 68 lakh laptops in five years.</p><p align="justify">Seeing the popularity of the scheme, the Pradesh Congress Committee in Gujarat, the Naveen Patnaik government in Odisha and Samajwadi Party announced similar schemes in their election manifesto to woo the youth. Even the Rajasthan Board of Secondary Education earmarked Rs 70 crore for distributing 44,000 laptops to meritorious students across different states. </p>
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LATEST NEWS UPDATES | Planning Commission cautions states against doling out freebies -Yogima Seth Sharma </title>
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NEW DELHI: Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked..."/>
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<h1 class="cat-box-title">Planning Commission cautions states against doling out freebies -Yogima Seth Sharma</h1>
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Published on</span><span class="text-date"> Jun 27, 2013</span>
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<div align="justify">-The Economic Times</div><p align="justify"><br /><em>NEW DELHI: </em>Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked them to focus on schemes related to infrastructure development.</p><p align="justify">"This year's message is basically that states must have much more efficient functioning of the inclusiveness scheme. Since a lot of the inclusiveness is impacted by development of the right kind of infrastructure and not just handout schemes, we have insisted that states focus on developing the right kind of infrastructure that can facilitate implementation of important schemes," a senior Planning Commission official told ET.</p><p align="justify">Citing instances of distribution of free laptops in Tamil Nadu, followed by Gujarat, Rajasthan, Odisha and UP, as well as free mobiles in Orissa, the official said that the issue has been taken up with all the states barring Uttar Pradesh while finalising their annual plans.</p><p align="justify">The annual plan for Uttar Pradesh, which has been distributing free laptops in the name of internet-based progressive education, will be finalised next month. It would then be handed out a stern message.</p><p align="justify">Handout schemes are always from the state fund, but the commission in its role in finalising the annual plans of the states has cautioned them about the impact of such schemes on their fiscal deficit. There is a very thin line between development expenditure and such handout schemes.</p><p align="justify">For instance, distribution of free laptops has a social benefit attached to it and will also benefit companies manufacturing laptops. So the centre or the Planning Commission for that matter cannot and would not like to oppose these schemes upfront but they can always advice the states to focus on inclusive growth.</p><p align="justify">"Though states agree that the infrastructure development is the need of the hour, some take pride in handout schemes, which are not good," the official added.</p><p align="justify">Tamil Nadu was the first state to distribute free laptops after AIADMK's J Jayalalithaa was sworn in as the chief minister for the third time in May 2011. The state had earmarked Rs 10,200 crore for distributing 68 lakh laptops in five years.</p><p align="justify">Seeing the popularity of the scheme, the Pradesh Congress Committee in Gujarat, the Naveen Patnaik government in Odisha and Samajwadi Party announced similar schemes in their election manifesto to woo the youth. Even the Rajasthan Board of Secondary Education earmarked Rs 70 crore for distributing 44,000 laptops to meritorious students across different states. </p>
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LATEST NEWS UPDATES | Planning Commission cautions states against doling out freebies -Yogima Seth Sharma
Planning Commission cautions states against doling out freebies -Yogima Seth Sharma
Published on Jun 27, 2013
Modified on Jun 27, 2013
-The Economic Times
NEW DELHI: Before populism spikes in the run-up to the general elections, the Planning Commission has cautioned states against doling out freebies such as free laptops, tablets, and mobiles in the name of development spending and instead asked them to focus on schemes related to infrastructure development.
"This year's message is basically that states must have much more efficient functioning of the inclusiveness scheme. Since a lot of the inclusiveness is impacted by development of the right kind of infrastructure and not just handout schemes, we have insisted that states focus on developing the right kind of infrastructure that can facilitate implementation of important schemes," a senior Planning Commission official told ET.
Citing instances of distribution of free laptops in Tamil Nadu, followed by Gujarat, Rajasthan, Odisha and UP, as well as free mobiles in Orissa, the official said that the issue has been taken up with all the states barring Uttar Pradesh while finalising their annual plans.
The annual plan for Uttar Pradesh, which has been distributing free laptops in the name of internet-based progressive education, will be finalised next month. It would then be handed out a stern message.
Handout schemes are always from the state fund, but the commission in its role in finalising the annual plans of the states has cautioned them about the impact of such schemes on their fiscal deficit. There is a very thin line between development expenditure and such handout schemes.
For instance, distribution of free laptops has a social benefit attached to it and will also benefit companies manufacturing laptops. So the centre or the Planning Commission for that matter cannot and would not like to oppose these schemes upfront but they can always advice the states to focus on inclusive growth.
"Though states agree that the infrastructure development is the need of the hour, some take pride in handout schemes, which are not good," the official added.
Tamil Nadu was the first state to distribute free laptops after AIADMK's J Jayalalithaa was sworn in as the chief minister for the third time in May 2011. The state had earmarked Rs 10,200 crore for distributing 68 lakh laptops in five years.
Seeing the popularity of the scheme, the Pradesh Congress Committee in Gujarat, the Naveen Patnaik government in Odisha and Samajwadi Party announced similar schemes in their election manifesto to woo the youth. Even the Rajasthan Board of Secondary Education earmarked Rs 70 crore for distributing 44,000 laptops to meritorious students across different states.
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