Growth and stability of Indian federation critically depends on the convergence of incomes across the States and this can be achieved only when there is a balanced spread of physical infrastructure and human development across the country. To achieve this, it is important to design and implement the transfer system that offsets the revenue and cost disabilities of the states and ensures a required minimum standard of meritorious public services with significant externalities so that people irrespective of their location are able to access these services.
Thus in the following report NITI AAYOG has analyzed the utilization of Central Transfers to States, and challenges related to it.
2. The Rationale for Intergovernmental Transfers
3. The Transfer System in India
4. Critical analysis of General Purpose Transfers
5. Issues in Centrally Sponsored Schemes