Niti Aayog suggests Finance Com for performance-based grants

Niti Aayog suggests Finance Com for performance-based grants

Agency News

New Delhi, Apr 15 : The NITI Aayog on Monday suggested the 15th Finance Commission for the award of performance-based grants for states or sectors.
Observing that richer states grew faster than poorer states, the NITI Aayog has made suggestions to the Commission on transfer of resources to states by the Centre.
The second meeting of the Finance Commission with the NITI Aayog held here in which its vice-chairman Rajeev Kumar, members, CEO and other senior officials, interacted with the Finance Commission led by chairman N K Singh.
The Aayog also listed out certain possible indicators for the consideration of the Commission, its made recommendations on Innovation and Transformation funds as well as on Medium Term Expenditure Framework.
Appreciating the suggestions of the Aayog, Mr Singh said there were concrete new thoughts and Commission would certainly examine the recommendations thoroughly.
The Chairman added that since NITI Aayog was an important and integral part of the Central Government, its recommendations must be part of the Central Government Memorandum to the Finance Commission.
The Members also exchanged views on the issues raised by the Aayog and discussed relevant issues like the Centrally Sponsored Schemes – which have now been made Co-terminus with the award period of the respective Finance Commission, conditionality/lack-of-conditionality of the horizontal, vertically and sector specific, and striking balance between performance grants and basic grants.