Book of Integration Council New - Ministry of Home Affairs

Removal of Regional Imbalances
Then, there is also the question of regional imbalances. Very often, in
order to promote growth in one State, another State has been made an unwitting
victim. For example, the grant of special incentives to promote industrialization
and economic development in J&K, H.P. and Uttarakhand have led to a virtual
flight of industry from Punjab. Decisions such as these must be re-considered
so that no State is adversely impacted by them, as Punjab has been in this
case. We do not advocate the withdrawal of these incentives to our neighbouring
states; we merely seek their extension to Punjab.
The planning process in our country has not kept pace with uniform development
across the country. The methods and formula adopted for devolution of funds
has serious flaws and this also contributes to both regional imbalance and to the
lack of equitable and sustainable development. These formulas are tailored to
suit only the backward states while punishing performance and efficiency. This
is as much true of the farm sector as of any other. In matters of agriculture and
irrigation, for example, Punjab has been denied its share in central funds simply
because we have worked hard and invested heavily in these two areas. Punjab has
depleted its only natural assets, land and water to provide food security to our
country.
But the centre has not thought it fit to reward the Punjab farmer by liberalizing
the norms for central investment in the farm sector in the state. Punjab deserve
to be accorded a special economic status.
Because of the injustice meted out to high performing states like Punjab,
these are being left behind in the matter of devolution of funds and allocation
of resources under various central schemes, leading to fresh regional imbalances.
There may be sub-regional inequalities which we must address. For
example, people living along the border belt have suffered huge disadvantages
because of sustained neglect. They bear the brunt of hostile environment for
the sake of the country but in the process they have suffered massive economic
disadvantages. The country needs to treat the entire border belt as a special
zone where norms of central assistance should be liberally redrafted.
To remove these regional imbalances, the planning process in our country
must be drastically altered, decentralised and brought in tune with the federal
principle. The state government are in the best position to understand the
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