The 15th finance commission is likely to propose to bring back performance-based incentives for states, despite few state governments appealing to amend few terms of reference (ToRs) by the centre, reported Business Standard.

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The financial commission will include the 2011 population census instead of the earlier 1971 as a basis for devolution of taxes between centre and states, the report said, adding that the states were protesting against the same as they would lose out.

Earlier in May, seven states and few union territories had opposed few parameters including how well the states implement flagship schemes of union government and control or lack of it in incurring expenditure on populist measures, the report said.

Despite the opposition, the financial commission said it will reward the states on parameters like effectiveness of capital spending, progress in increasing revenues, progress made in achieving replacement rate of population growth, and achievements in infrastructure and social sector schemes, Business Standard reported.

During the recent NITI Aayog meeting, Prime Minister Narendra Modi urged the state governments to identify new parameters on which performance in other fields could be rewarded.

The performance-based incentives were proposed by the 13th financial commission but was omitted by the 14th financial commission.

First Published:Jun 26, 2018 6:36 PM IST