ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Plan Transfers to States-Revised Gadgil Formula An Analysis

Revised Gadgil Formula: An Analysis R Ramalingom K N Kurup It has been reported that the Central government is reviewing the change approved by the National Development Council in October last year in the so-called Gadgil formula governing the distribution of Plan transfers from the Centre among the different States. This paper looks at Plan transfers to the States under the original Gadgil formula and under the formula as modified on the eve of the formulation of the Sixth Plan and against this background discusses the rationale behind the further change effected last year and its impact on the Plan outlays of the States.

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