The Economic Survey 2016-17 has reprimanded the states for not ensuring growth matching central financial assistance. It has put the onus on the states for overall development and fiscal prudence.
The Survey highlighted the relation between redistributive resource transfers (RRTs) and gross state domestic product (GSDP) of the respective states. RRT to a state is defined as gross devolution adjusted for the respective state’s share in aggregate gross domestic product. RRTs could be aids, grants or the Budget devolution to the states.
In a new chapter, The ‘Other Indias’: Two Analytical Narratives (Redistributive and Natural Resources) on States’ Development, the