Implementation holds the key to success
Among the major decisions Prime Minister Narendra Modi's Government took on assuming power was to scrap the Planning Commission and its Five-Year Plans. The first step in that direction was taken with the establishment of the Niti Aayog. Since then, there had been speculation on the next move. It is now known that Niti Aayog will roll out a ‘15-year vision roadmap' from 2017, that will replace the five-year planning process which was adopted soon after the country's independence and had lingered on since then as a Soviet relic. The Government has also sensibly decided to implement the Budget announcement of doing away with the distinction between plan and non-plan expenditures. Times have changed and nations have begun to think long-term. Moreover, the era of controlled ‘socialist' economies too has ended in many countries with increased competition and global economic linkages determining the market. Internally, States have been demanding more say on ways Central funds should be utilised by them, given that the earlier practice of a common template for all had failed for a variety of reasons. By earlier accepting the recommendation of the 14th Finance Commission, the Union Government had taken a major step forward in empowering the States through access to more Central funds. Many experts had come to the conclusion that the Five-Year Plan system had outlived its purpose and that the country should embrace global practices and adopt long-term measures to bring in a sense of stability. The scope for flexibility is also greater in longer-term plans, and this is evident in the Government's move to incorporate a ‘seven-year strategy' into the 15-year roadmap. In other words, a window will be open to review and revise the roadmap, given the prevailing conditions. The interesting part is that the new plan architecture will not limit itself to economic planning but also formulate ideas and action maps in areas of defence and internal security. So far, these subjects had been kept out of long-term planning processes although they are an important part of sustained economic development. The inclusion of defence and internal security also blends with the promotion of Niti Aayog as a Government think-tank and not just another arm of officialdom, doing its job in a desultory fashion and allocating funds like a ruler handing out doles to recipient subjects.
The other interesting aspect is that the first appraisal of the National Development Agenda (which will guide the seven-year strategy) will happen in 2019, coinciding with the lok Sabha election. The Government, therefore, has, little time on its hands to demonstrate visible results through the new, path-breaking measure. It has to show unambiguously that its new plan structure can bring in a distinct improvement in the lives of the people, to the nation's economy and its social indicators. Of course, many issues the new architecture will deal with have long gestation periods and one must not expect quick results. What can be seen and judged much earlier are the vision statement, the Government's commitment to allocating requisite resources to implementing agencies, and the execution of various projects.