Wednesday, September 9, 2009

A Differently Able Country


Thirteenth Finance Commission would submit its report to the Central Govt. next month October’09. All finance commissions after due diligence recommend the modalities of distribution of shareable taxes between Central and State Govt., religiously, as per their term of reference; that has resulted in rapidly growing disparity between Rich & Developed States and Poor & Under Developed States in last Sixty Years. Incremental Changes are passé. Thirteenth Finance Commission must step out and recommend some thing Radical to Accelerate the Growth of Poor and Undeveloped States in order to minimize the disparity and check the incidence of growing violence inside homes and also on the Streets. Here are a few Ideas for the consideration of eminent chairman and members of the finance commission.

1.Poor States should be allocated funds Over and Above their due share of taxes and Plan Assistance (subject to efficient utilization of resources allocated) to bring their development to at least at the Average level of development in the country in 5-10 years.

2.A few years Richer States can forgo (sacrifice) their just revenue share to help develop the poor states in order to check the ever growing disparity among Rich & Poor States and among regions in Larger interest of the country. Otherwise, due to lack of resources Poor states would remain that way for long time and Bring down the Overall growth of the country. Only, higher growth in GDP; without addressing the issues of development in poor states would only accentuate Disparity, Social disharmony and discord as seen in Naxal infected areas. And, Identically in the slums of Mumbai and other metros due to migration of people from poor states.

3. Richer states are in better position to raise long term capital in market on their own, due to higher disposable income of their people. In the words of Economist A.C Pique “Nurse the baby, protect the Child and free the adult" the principle, could be applied in distribution of resources by the Finance Commission.

4. In progressive family, Rich and well to do members get together to pull the financially weaker member of the family, to a decent standard of living. And, enhance the overall stature of the family in the neighbor hood. Hypothesis may be kept in mind by the finance commission.

5. India is rightly being seen and talked about in global forums “as a country at the door step of being a Regional Power” but Handicap of Poorer Eastern States would jeopardize such ambition.

If, even one limb of a person is dysfunctional, he remains a Differently Able Person rest of his life; how about an acronym “a Differently Able Country”?


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