(a) whether the Planning Commission held a meeting in June to discuss the approach
paper on the 10th Five Year Plan proposing changing in the Gadgil-Mukherjee formula which
has been in vogue for the last 20 years in allocation of funds to States formula;
(b) if so, the details thereof;
(c) whether any decision has been taken in allocation of funds based on population of
each State;
(d) if so, the details thereof; and
(e) if not, the reasons therefor?
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE DEPARTMENT OF
DISINVESTMENT, MINISTER OF STATE IN THE MINISTRIES OF PLANNING,
STATISTICS & PROGRAMME IMPLEMENTATION AND MINISTER OF STATE IN
THE DEPARTMENT OF ADMINISTRATIVE REFORMS AND PUBLIC GRIEVANCES (SHRI ARUN SHOURIE)
(a) to (e): The Full Planning Commission in its meeting held on 27th & 29th June 2001
discussed, inter-alia, the issue of the revision of Gadgil formula for allocation of Normal
Central Assistance (NCA) to States. However, since a review of the Formula requires the
approval of the National Development Council (NDC) and also in view of the difference of
opinion among the State Governments and the sensitivity of this issue, it was decided that it
would be necessary to discuss this further and evolve a consensus before alternatives are
considered by the NDC.