Discuss three key changes India's development policy planning after abolition of Planning Commission.
Published: December 24, 2017
The three key changes are as follows:
- The distinction between plan and non-plan expenditures and outlays has gone. This was in line with recommendations of several panels’ including14th finance commission.
- The constitution has entrusted the responsibility of financial devolution only to finance commission. However, the mandate of finance commission was diluted in 1970s and role of plan fund began. This had eclipsed the role of Finance Commission by Planning Commission, an extra-constitutional body, which acquired the status of “Super Cabinet” in due course. This is no more a case with India’s policy planning. Consequently, we can expect more exhaustive role to be played by 15th finance commission.
- The Chief Ministers don’t need to come to Delhi for their annual discussions. Instead, NITI Aayog is going to states.
Further, centre is not now deciding the Centrally Sponsored Schemes in Delhi; instead, states have been given free hand to implement them as they suit to their requirements.
Model Questions Category: 058 - Indian Economy Issues Relating to Planning