Raghuram Rajan committee,
set up to evolve new criterion for determining backwardness of states, has
submitted its are accountable to the government.
Objectives
Objectives
- The committee, headed through the then Chief Economic Advisor Raghuram Rajan was setup by the government amid demands for “special category” status by Bihar. Because it did not fit the relevant criteria for your status a need was felt to evolve a brand new methodology for devolving funds on states according to their backwardness.
- Proposes to end the current ‘special category’ criteria for providing additional help poorer states (Which is according to Terrain, Population density and Period of international borders)
- It gives a ‘Multi Dimensional Index (MDI)’ to determine backwardness of states
- MDI scores split states into three categories -- least developed, less developed and comparatively developed
- Each state ought to be given a fixed basic allocation of 0.3 percent of overall funds
- States (particularly those scoring 0.6 and above) can get additional assistance based on their development needs and gratifaction
- Multi Dimensional Index of Backwardness is dependant on..
- Per capita consumption as measured through the NSSO
- The poverty ratio
- Other measures at par using the approach adopted to identify poverty within the 12th five-year plan.
- Least Developed: States scoring 0.6 and above
- Less Developed: States scoring between 0.4-0.6
- Relatively Developed: States scoring below 0.4