The government has formally moved to bury the Planning Commission before January 26 with strong support from regional parties. The only resistance came from Congress-ruled states, which failed to garner support except from the Bihar government controlled by Nitish Kumar, once a supporter of decentralization in decision-making. PM Narendra Modi, who discussed the role of the Planning Commission with chief ministers, had announced the government's intent to replace the plan panel with a new entity during his Independence Day address. On Sunday , he made it clear there was a need to replace the top down approach in planning with a “bottom to top“ approach with states being given a key role. He argued for cooperative federalism and strengthening of `Team India'. Amid resistance from Congress CMs who questioned the need to wind up the plan panel, Modi invoked his predecessor Manmohan Singh, also a former deputy chairman of the plan panel. “He said Singh had noted the body had no futuristic vision in the post-reforms period,“ a statement said, quoting Modi. The BJP government's blueprint for a revamp of the planning exercise will see states get flexibility in terms of tailoring their plans to suit their requirements instead of the Centre imposing a “one-size-fits-all“ programme.
In a 40-page presentation made during a meeting of chief ministers, the government said the institution to replace the Planning Commission would be empowered to formulate a national development strategy in a market economy integrated with a globalized world in consultation with states.
Highlighting weaknesses in the erstwhile planning panel, the presentation suggested six key functions for the new institution. These include evolving consensus on national development strategy, defining reforms agenda, acting as a platform for resolution of cross-sectoral issues at the Centre and states and as a knowledge and innovation hub and a capacity-building and technology watch group. The plan visualizes partnership with states in promoting cooperative federalism as it proposes permanent members from states in the new body. The new institution will act as a platform for structured and regular inter-action with states as there are indications that the government is working on a structure which will have the PM, some Cabinet ministers and some CMs along with technocrats and experts from various fields. The government is also open for a relook on the mechanism for fund flows from the Centre to states as CMs were asked to give suggestions on the issue.
Pressing for an effective structure which strengthens “cooperative federalism“ and the concept of “Team India“, PM Narendra Modi said, “It is impossible for the nation to develop unless states develop.“Finance minister Arun Jaitley said, “There cannot be a universal scheme that suits all states. It is a fallacy that one size fits all in case of implementation of central schemes.“
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