The 12th Finance Commission has also provided a framework for substantial increase in Central devolutions and transfers to states. This would result in beneficial impact on revenue account. More grants-in-aid will also be available for expenditure in the social sectors which will be an additionality over the normal expenditure by the States in these sectors. Availability of resources alone cannot generate social sector development.
It is in this context that the Finance Minister in his Budget speech has distinguished between the outlay and the outcome. A major element would be the development of proper institutions. NGOs or local self government like Panchayati Raj have a lot to do with the attainment of outcome in the social sector development.