Finance Commission recommended funds to promote growth in states: Report

NEW DELHI: Days after the 14th Finance Commission recommended higher devolution of funds to states, the India Development Report 2015 has put the onus on states for higher growth.

"State governments have been fiscally more responsible than the Centre. Policies and governance at state level are much more important for better outcome," said the report, released by the Indira Gandhi Institute of Development Research on Monday.

It has outlined six areas to help development of the economy in short and medium term. "Measures needed are creating conditions for revival of investment, rise in business environment, improvement in infrastructure, reduction in inflation, fiscal discipline, revival of manufacturing, social sector development and good governance," it said.

Former RBI governor and chairman of 14th Finance Commission YV Reddy released the report in presence of Abhijit Sen, member of erstwhile Planning Commission, Rajiv Kumar of Ficci, Rajat Kathuria of Icrier and the report’s editor, S Mahendra Dev of the IGIDR.