Special Development packages in-priciple are meant to assist the developmental efforts for certain states which owing to different compulsions,leading to resouce shortage, needing them thus propagating cooperative federalism where central geovernment assist state governments efforts.However it is often alleged that in-practice these are announced based on political mileage.
The developmental package are meant for resource assistance to States like-
1.J&K,North-Eastern states facing insurgency problems.
2.Bihar,UP which have large population even lacking the basic amenties.
3.States facing naxalism like Chattisgarh..
4.States facing natural calamities like floods,drought,earthquake etc.
However more often it is observed that they are sanctioned on the basis of political considerations like-coalition politics,to garner support in Rajya Sabha,demands from opposition party led states are often rejected.This dents the priciple as-
1.leads to distort allocation mechanism of limited resources.
2.states making their support conditional on crucial issues like Land Boundary agreement.
3.public funds used to further ruling-party’s interest.
4.leading backwardness in already backward and needy states.
Hence priciple of cooperative federaism is violated.But this doesn’t means that such grants be stopped.Instead a mechanism in place is needed to judge the state’s demand on the basis of merit.Inter-state council and Finance commission are rather better choice than finance ministry in this respect to keep up the spirit of these special packages alive.
The developmental package are meant for resource assistance to States like-
1.J&K,North-Eastern states facing insurgency problems.
2.Bihar,UP which have large population even lacking the basic amenties.
3.States facing naxalism like Chattisgarh..
4.States facing natural calamities like floods,drought,earthquake etc.
However more often it is observed that they are sanctioned on the basis of political considerations like-coalition politics,to garner support in Rajya Sabha,demands from opposition party led states are often rejected.This dents the priciple as-
1.leads to distort allocation mechanism of limited resources.
2.states making their support conditional on crucial issues like Land Boundary agreement.
3.public funds used to further ruling-party’s interest.
4.leading backwardness in already backward and needy states.
Hence priciple of cooperative federaism is violated.But this doesn’t means that such grants be stopped.Instead a mechanism in place is needed to judge the state’s demand on the basis of merit.Inter-state council and Finance commission are rather better choice than finance ministry in this respect to keep up the spirit of these special packages alive.