The government is examining the possibility of setting up a Rs 10,000 crore (Rs 100 billion) governance-linked annual fund for states.
The National Advisory Council headed by Congress chief Sonia Gandhi has recommended the constitution of the fund, which will form a part of the central transfers.
The fund will be linked to parameters like infant mortality, immunisation levels, literacy of women, child sex ratio, job creation, market wages for agricultural labour, rural electrification and prosecution of class-I officers on corruption charges.
In a note to the government, which is posted on the NAC website, the advisory body has also suggested the preparation of a stability index for key government officials like secretaries, district magistrates and superintendents of police.
While recommending a minimum two-year tenure for chief secretaries and directors-general of police, the NAC has suggested an average two-year tenure for each group of officers.
In case the government transferred an official before the completion of the two-year term, the new officer may be given a longer tenure to maintain the average at two years, the note said.
In its recommendations for the Budget, the NAC has suggested that the expenditure budget be valid for two years to ensure that capital expenditure was completed without the allocated funds being surrendered.
It also proposed that in the case of central government-sponsored schemes, the approval of the state legislature may be done away with for utilising central funds that are transferred to the consolidated fund of the state.
The NAC said the fund earmarked for good governance be created in the Planning Commission to augment the Plan resources of the states, which will improve their index of governance.
"Once these figures are publicised, the states may get into competitive mode in the direction of improving their score," the note said. The NAC has suggested that the states be placed in three categories--those above the national average, those below the national average and special category states.
It said that such a system would mean that the poorer states do not have to compete with the better-off states.
"With a view, however, to urgently endeavouring to improve the satisfaction levels of the common man, (the) NAC felt that concerted steps have to be taken, the short and the long term alike, to strengthen service delivery, especially in the social sector," the note said.
It also said that states recruiting teachers and medical staff in the coming years should adopt a transparent procedure on the basis of examinations.
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GOVERNANCE SCALE
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