Larger role for States and private sector is what Narendra Modi’s proposed alternative structure for Planning Commission will have, if his brainstorming session on Sunday with the heads of the States and Union Territories are any indications.
While majority of the States favoured a new body replacing the existing Commission, some, mostly Congress-led States were inclined towards evolving the present body into that structure. In fact, some State leaders like Nitish Kumar, Mamata Banerjee have pitched for inter-state councils.
“Every State agreed that there was a need for change with more rights to them. Role of corporate and private sector is important role and also has to be kept in mind. Planning Commission has to re-invent itself in the present environment,” Finance Minister Arun Jaitley said.
Speaking to media after the session, Jaitley said, there were questions raised by the Secretary Planning Commission on – what would be the scope and method of interaction in the new forum; what will be the strategy, tasks and mechanisms for this platform; should the five year plan cycle continue; should the annual plan discussions continue in the present form; how should the annual plan discussion continue.
“States did respond. Some suggested that the number of central schemes should be brought down. States also felt that there is a need to decentralise both power and planning. There was a strong argument that not all schemes fill fit every State equally, States know what suits them best. The sum and substance was that States be more empowered,” he added.
Asked who came and who did not, Jaitley said that all states and union territories were represented, in two cases (West Bengal and Mizoram) the Chief Ministers were represented by the Finance Ministers, while States going into election were represented by their officials.
While he declined to give any timeline by when the new body will be in place, the Finance Minister did press upon the fact that Former Prime Minister, Manmohan Singh, had also advocated that it was time for Planning Commission to re-invent.
On the role of “Think Tank”, Jaitley said that the Prime Minister in his opening remarks noted that in countries such as the USA, think-tanks that function independently have a major role in policy-making. “In India too, there is a great deal of economic activity that happens outside the Government setup, and there is a need to design policies for them as well,” he said. This will also allow industry to voice its views.