Over centralisation of financial and political powers is the root cause of mis-administration and mismanagement of resources leading to inequitable development causing widening of the existing gap between the rich and the poor as well as the development of backward regions.Devolution of financial powers and political independence at the district and village levels is perhaps the answer.All development plans need to be initiated and imlemented at the lowest levels but co-ordinated at successive higher levels.Division of states on the basis of economic backwardness as is being suggested would be disastrous like Jharkhand and Chhatisgarh as they would not have the resources to be self sufficient in any manner.
