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Achievements in the year 2018-19

Comprehensive State Profiles 

 

The vertical has prepared a comprehensive profile of States’ education, health and finances with effective representation in easy to understand graphs and charts which compares’ States across various outcome parameters in these sectors with not only the latest data but also its performance trajectory.

 

Assessment of Study commissioned by NITI on State Finances of Kerala, Punjab and West Bengal

 

As an initiative to provide structured support to the States and foster their finances recognising the fact that stronger States are important to make a strong nationa study was commissioned for three States, namely Kerala, Punjab and West Bengal whose financial indicators were found as worrisome. The study aimed to provide necessary solution to optimally utilize each of their available fiscal space and to better manage their public finance.

The study examined the extent and cause(s) of fiscal stress of these States and suggested policy implications to reduce mounting revenue and fiscal deficit of each of these States. The reports have been finalized and are available on NITI Aayog website.

 

New Initiatives

 

Rewarding States for performance on key outcomes of human development like health, education, etc. by linking certain proportion of fund allocation under schemes to performance by the States’ in these outcomes. A simulation exercise was conducted by tweaking the existing formula to allocate funds to States under National Health Mission to include change in performance and existing level of performance of States’ in health sector as measured by the NITI Health Performance Index launched in January 2018. The idea is a new perspective in the policy direction with the intention to promote competition both within and among states and drive performance in specifically the social sectors.

 

Allocation to States

 

The Union Government is committed to assist states to meet the “spill over liabilities” of their area specific schemes and projects for which budget provision has not been made after the implementation of Fourteenth Finance Commission recommendations and also to provide for need-based assistance to the states on account of varying socio-economic-geographical factors. In order to honour this commitment, on the basis of NITI’s recommendation, Rs.685 crore has already been released by Ministry of Finance till the end of September 2018 to States from ‘Special Assistance’ provided under Demand No 40 of Union Expenditure Budget.