Is it wise to scrap Planning Commission?
Is it wise to scrap Planning Commission?
The topic has taken importance as recently the new Prime Minister of India has talked about scrapping of the commission. Planning Commission was formed in 1950. It has been almost 64 years of its formation, the question of the sudden scrapping of the commission is something that raises debate in the present.
Planning Commission attribute has always been linked to the Soviet style planning in India. It indicates a more socialistic and welfare nature of Indian economy. National Development Council is an overarching body of the Commission. It is supported by the secretariat of the commission itself, and is the decision making body. It comprises of the Finance and Planning ministers, which are important decision makers of the planning of India. It also has its members as Chief Ministers of various states, which makes it more federal.
• The reason for scrapping seems reasonable as it is an old system and the government system needs rejuvenation. The demand of people, country and economy needs to be addressed and it should be kept in mind that such demand changes over time.
• The system that India has adopted was when it was a nascent democracy, the aspirations of people were limited to that of basic education and health. Now, India is an emerging economy and hence, it needs to be addressed so.
• There is an understanding that state governments, instead of the Planning Commission are at better position to do investment because they have better local level information.
• India is such a diverse country that a centralized planning cannot work that effectively. In fact, it adds to the incompatibility.
No
• Planning Commission, is an extra constitutional body responsible for formulating India’s Five-Year Plans apart from playing many other important roles. It was formed by the executive resolution passed by the Indian Parliament.
• The Planning Commission also serves as a link between the Centre and the states. The allocation of resources between various states is done by it. Scrapping it wuld disturb the co-ordination.
• India has been marred by the numerous imbalances in the regional development. Some states are developed, other are still striving to meet the ends. To overcome the problem of imbalance in the development, a balanced approach is required on the part of the government. The Plan-ning Commission is the linkage for this. It allocates the resources to the less developed states, so as to provide them equal opportunity for development and bring them at par with the rest of the country.
Conclusion
There is a demand for a new institution which is more federal and effective. To make a new institution or to improvise on the present institution is still a never ending debate.
The present institution of Planning Commission should work as a body to think about developmental plan for India in the coming 20-25 years.
The new institution should be based on public-private partnerships (PPP model). There is a need of more optimal utilization of resources. Whether it is the Planning Commission or any other institution replacing it, it should work with an objective to develop India and should be free from political interference.
To start something new from scratch is not an easy job, it is difficult to abolish the present system completely. Instead of scrapping it, more professionals and experts can be added to the Commission for better working of it and to be freed from any political influence.
Discussion
- RE: Is it wise to scrap Planning Commission? -Deepa Kaushik (08/29/14)
- The Planning Commission was formulated by India’s first Prime Minister Jawaharlal Nehru who believed that India’s goals and objectives can be best addressed with a planned economy; an idea that he borrowed from the Soviet Union. Accordingly, it was formed on 15th of March 1950, and the Five Year Plans started from 1951 onwards. At present the 12th 5 year plan is under progress i.e. 2012-17. Nearly 64 years after the formation of planning commission; and in his first Independence Day speech as a Prime Minister, Mr.Narendra Modi has unveiled the idea of disbanding the Planning Commission.
We definitely do have our points both in favour and against scrapping Planning Commission. Discussing the points in favour:
The planning commission was set up for India which had just become independent 64 years ago, and has outlived its tenure. Today’s situation and requirements are different which requires a new approach. In truth, the remit of planning commission has been curtailed in the last two decades for liberalisation. The existing planning commission has a socialist approach, which puts burden on the government for its resources to devise and implement five year plans, what is proposed by our current Prime Minister indicates the public private partnership. The main point being the utilization of the youth power will come up with new creative and innovative ideas and a fresh outlook which could be more practical for the present era, rather than the old literature being followed blindly. And with our new approach, the Union Finance Ministry would justly have greater say in allocation of funds to states.
But we definitely have some arguments to counter the move of PM in scrapping the existing Planning Commission:
The planning commission is a constitutional body. To disband it without a discussion in parliament is not the right approach. If democracy is to prevail the ruling party must hear the opinion of opposition. This sudden decision will bring friction from other political parties. There is also a risk that this public private participation without adequate systems and controls may lead to enhancement in profit making by corporate/corruption. And what is the guarantee that the new arrangement of the team of experts will do better than the existing arrangement (Planning Commission)? As the allocation of funds would be done by the union finance ministry, central government would have a greater say and thus there is a risk of biasness towards states based on the party ruling the state. The planning commission is an established function. There would be much time, money and energy required to set up a new arrangement and build systems & controls around. There is also a question of ‘what will happen to the 12th five year plan’. Surely, ceasing this will mean some loss of investment or the funds.
To be precise, changes are required, and there will always be some who resist change; but we live in a democracy and I don’t think it is fair to take decisions of such magnitude without discussing in the parliament. Whilst Planning Commission is in existence for quite a long time and it may not be perfect for today’s situation, I don’t think disbanding it is justified; instead it could be revived by changing its model and inducing a proportion of young people ensuring that there are new ideas, creativity, & innovation, at the same time some experienced hands to share guide and nurture them.
- RE: Is it wise to scrap Planning Commission? -Teena Bhatia (08/26/14)
- The Prime Minister Mr. Narendra Modi, in his Independence Day speech, had invited people to come up and share ideas on how the new system should replace the old structure of planning commission. The new government wants to scrap the six-decade old structure of planning commission to give place to a new system that will be more federal in nature. However, the government is not realizing that handing the financial matters to free economy can prove costly in the longer term.
First of all, it is important to understand that the government opted for an arbitrary announcement which is not at all acceptable in a democratic country like India. Before making the key announcement, Mr. Modi should have taken the views of the Chief Ministers and have conducted a NDC meeting to discuss the matter. It can be called as a pure autonomy start of a structure leading to conflicts in the future.
The Modi Government is trying to scrap the entire planning commission which holds a lot more value in India. The Planning Commission is already playing a limited role after liberalization. In such a scenario, there is no need to make unnecessary changes in system. The Planning Commission is assigned with the major responsibility of making the right use of resources so that there are no regional disparities in the nation. It monitors all the important projects and schemes in India. Making Planning Commission a federal institution will create a imbalance in the resources allocation for states. The decision making power will go in hands of the Finance Ministry leading to political bias and centralization. It will just open the doors of benefits for the private sector. Ultimately, the decision will cost a huge damage to the nation in the long run.
