Concept:The Gadgil Formula is a resource allocation framework used by the Planning Commission to distribute central assistance among Indian states for their five-year plans.
Key Fact:Introduced in 1969, its primary objective was to determine the allocation of central assistance for state plans based on population, per capita income, and performance.
Explanation:The formula aimed for fair and transparent distribution, emphasizing need-based support for economically weaker states to promote balanced regional development. It gave 60% weight to population, 25% to per capita income, 10% to performance, and 5% to special problems. Later revised as the Gadgil-Mukherjee Formula (1990), it added fiscal discipline criteria. Option A is correct because it directly states the primary objective. Options B, C, and D are incorrect: B focuses only on industrial growth, C suggests equal support regardless of needs (contradicts the need-based approach), and D considers only economic outputs.
Answer:A. To determine the allocation of central assistance for state plans in India