Citizens would soon be able to know how state governments spent public funds for their welfare in the social sector, including education, health and infrastructure.
The 13th Finance Commission has asked Lal Bahadur Shastri National Academy of Administration to conduct a study on governance in India and to recommend an index of good governance.
The commission has asked the institute to study governance models of different states listing out best practices and the areas where they have faltered. “Based on the experience of different states there can be a national level governance index for the country which can tell people a difference between a well governed and poorly administered state,” a commission official told HT.
Under the index, each state will be ranked on different parameters — from utilisation of Central government funds to public services. The Central government gives over Rs 1 lakh crore every year to states under different schemes. But, the Centre has no method to measure their performance.
The index is part of the exercise to recommend a system to improve quality of public expenditure to obtain better outputs and outcomes. The institute is expected to submit its report on governance index by January 2009.