An independent agency for allocation of resources in states and monitoring the outcomes would be a right institutional arrangement. Explain (200 Words)
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IAS Parliament 9 days
KEY POINTS
· The government introduced a variety of initiatives to ensure flow of credit to priority sectors, besides introducing policies relating to infrastructure support to facilitate entrepreneurship and industrialisation of backward areas.
· The skewness of the institutional credit flow on per-capita basis is also validated by the coefficient variation of inter-State credit, which persisted at above 65 per cent throughout this period.
· Credit disbursed as per cent to GSDP for all States averaged 24.81 per cent in 1991-92, which gradually increased to 49.94 per cent in 2011-12, before moderating to 45.93 per cent in 2021-22.
· For all North-Eastern States, the credit/GSDP ratio remained lower than 25 per cent during 2021-22.
· Notwithstanding an improvement in credit/GSDP ratio over time, for most of the backward States, the ratio remained below the national average.
· There have been significant inter-State variations in credit-deposit ratio. While the average credit-deposit ratio in 1991-92 was 58.2 per cent, North-Eastern States in general and other poor States had a much lower ratio.
· The Twelfth Finance Commission had considered equalising delivery of services in health and education sectors across States. More sectors, particularly civic facilities, may be added for getting a minimum standard of access across the country.
HARSHITHWIN MEEJURU 14 days
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IAS Parliament 14 days
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