Prime Minister Narendra Modi on Sunday said the role, relevance and restructuring of the Planning Commission had been repeatedly questioned for more than two decades. He was speaking at the Chief Minister conference to discuss the Centre’s proposal to dismantle the Planning Commission and its replacement by a new body.
Underlining that it was impossible for the nation to develop unless the States develop, he told the meeting that the process of policy planning needs to change from “top to bottom”.
The States should have a key role in the new body, Modi said, adding that “states sometimes feel there is no platform to express their views...There should be an effective mechanism to address inter-state disputes.”
“Can we develop a new mechanism that plans according to India’s strengths, empowers states, and brings on board all economic activity, including that which happens outside the Government,” he asked while setting the tone for the meeting. Modi also noted that in countries such as the USA, think-tanks that function independently of the Government have a major role in policy-making.
In India too, he added, there is a great deal of economic activity that happens outside the Government set-up, and there is a need to design policies for them as well.
Modi further said that inputs provided by Chief Ministers would help in shaping the structure of the new body to replace the Planning Commission.
later the Prime Minister held a retreat, a first of its kind where the Prime Minister and Chief Ministers met without the support of any officials in a relaxed, private setting and discussed developmental issues and specific success stories in their States.
Opposing the move to disband the Planning Commission, Arunachal Pradesh Chief Minister Nabam Tuki described the body as a single window for small States to air grievances on issues like regional aspirations and Centre-state disputes.
Karnataka Chief Minister Siddaramaiah said there is no merit or justification in the decision to dismantle the existing one created six decades ago.
Odisha Chief Minister Naveen Patnaik supported the initiative “aimed at transforming India’s co-operative federalism”, saying inequitable distribution of resources in the past had caused imbalance in development across States.
At the meeting, Uttar Pradesh Chief Minister Akhilesh Yadav hit out at the Centre for financially “burdening” the States by executing schemes which come under the State list, saying such programmes were putting the resources of the State Governments under undue pressure.
He also said the practice of ‘one size fits all’ should be discarded by the new body which takes over the role of the Planning Commission as without a flexible policy, the States with differing needs cannot develop. Yadav said the contribution made by the Planning Commission in “challenging” times cannot be ignored. “We have to incorporate changes based on experience gained over a period of time,” he said, referring to the revamp of the plan panel.
Asserting that the Planning Commission does not meet aspirations of the States, Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Sunday suggested its replacement with a new advisory body. He also suggested establishment of a “knowledge and innovation hub” under the proposed body. The plan panel “has a centralised structure. It doesn’t meet the aspirations and needs of the States. There is a need to change the mandate of Planning Commission,” he said. The new body should be under the Prime Minister and have all Chief Ministers as its members, and have advisory role, he said.
Maharashtra Chief Minister Devendra Fadnavis called for replacement of Planning Commission with a National Development and Reforms Commission to achieve Sabka Vikas Sabka Saath motto of the ruling NDA Government at the Centre. Chhattisgarh Chief Minsiter Raman Singh and Rajasthan Chief Minister Vasundhara Raje also backed the idea of dismantling the archaic plan panel.
Raje emphasised that Co-operative Federalism in the true sense is the only way through which States can work together to achieve national goals. She thanked the Prime Minister and his Council for creating an enabling environment where States were being allowed to comment fearlessly on governance structures.
Modi also got support from Tamil Nadu Government, which backed the idea of dismanting the plan panel and pitched for a stronger role for states in the new mechanism.
TN Chief Minister O Panneerselvam recalled that Modi had highlighted the need to bring States to the Centre of the development process as the primary motivation to replace the Planning Commission.
“This is a welcome emphasis. In our constitution, for reasons of administrative efficiency and convenience, more of the taxation powers are vested with the Central Government.