Tamil Nadu has sought increased role and greater fiscal autonomy for States in the new institution that will replace the Planning Commission.

“It is our belief that a Strong Union can emerge only out of strong states and India’s governance structure has to incorporate more federal features,” Tamil Nadu Chief Minister O Panneerselvam said at a meeting chaired by Prime Minister Narendra Modi with Chief Ministers to discuss the new institution.

States were frustrated with the meaningless ritualistic exercises that Annual Plan discussions and National Development Council meetings had become. “Neither did we receive schemes, funding support nor were we heard,” he said.

Since the founding of the Planning Commission, India has changed considerably. The role of the Government at the Centre is now more of a facilitator through economic policy, making while the role of the state governments as providers of public goods such as maintenance of public order and provision of social and economic infrastructure, has grown.

An exercise of increasing irrelevance was the Annual Plan discussions held each year to finalise the Plan size for each state.

Futile discussions

The discussions have little value addition at the technical level and no significant additional financial allocations. This ritual should be abandoned straightaway, he said.

With the abolition of the Planning Commission, continuance of the plan and non-plan distinction appears to be even less relevant.

“States should be free to choose crucial schemes in the infrastructure and social sectors, he said.

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