Planning Commission To Be Axed: PM Modi
Planning Commission To Be Axed: PM Modi
A Nehruvian legacy met its end when PM Modi announced that the Planning Commission will soon be disbanded. The PM mentioned during his Independence Day speech that a new institution will come about for replacing the Planning Commission.
Modi is currently the chairman of the Planning Commission. He has held that the commission has outlived its utility. "In a short time, we will initiate a new institution that will work in the place of the Planning Commission," Modi indicated in his maiden speech from the Red Fort on Independence Day.
Modi also emphasised the importance of federalism in India and the urgent need for institutions to address this reality. "This is a good thing (increasing importance of the federal structure). We have to strengthen it," Modi said . He also added that "Today, times have changed from the era when Planning Commission was created."
The commission had been set up to deliver the Directive Principles of State Policy of the Constitution which made provisions for people's welfare through securing as well as protecting a social order through principles of justice and equity. India's first prime minister Jawaharlal Nehru had set up the commission and conceived of a plan economy which set goals within 5 years. The Planning Commission was set up through a resolution of the Government of India on March 15 in the year 1950.
The Commission began presenting its 5 year plans from 1951 though it was disrupted a few times by factors such as the drought as well as Indo-Pak wars. The Commission is currently overseeing the 12th plan from 2012-2017. PM Nehru was its first chairman and members were Chintaman Deshmukh, V.T. Krishnamachari, G.L. Mehta as well as R.K. Patil. Guzarilal Nanda was the deputy. PM Modi has long since viewed the commission as a hinderance.
An Independent Evaluation Office set up by the Planning Commission under Ajay Chibber, former assistant general secretary of the UN also criticised theCommission saying "It is clear the Planning Commission in its current form and function is a hindrance and not a help to India's development. It is not easy to reform such a large ossified body. It would be better to replace it with a new body that is needed to assist states in ideas, to provide long-term thinking and to help cross-cutting reforms."
The report also suggested the need to abolish the Planning Commission. This report was submitted to Modi on May 29. The government is all set to carry out its recommendations now with Modi's latest declaration during his Independence Day speech.
