MINISTER OF STATE IN THE MINISTRY OF PLANNING (SHRI M.V. RAJASEKHARAN)
(a) to (b): Normal Central Assistance to the States by the Centre is provided under a formula
called `Gadgil Mukherjee Formula` as approved by the National Development Council (NDC)
in December, 1991. According to the formula, after setting apart funds required for External
Aided Projects and a reasonable amount for Special Area Programmes, 30% of the balance of
Central Assistance for State Plans is provided to Special Category States. The remaining amount
is distributed amongst the non-Special Category States on the basis of, with the weights indicated
within the brackets:
(i) Population (60%)
(ii) Per capita income (25%)
(iii) Performance in tax
effort, fiscal management and progress in respect of national objectives (7.5 %) and
(iv) Special
Problems (7.5%).
(c) to (d): There is at present no request from Rajasthan for change of norms/formula or
incorporating some other standard that is under consideration.