lannin in ndia 5.15
had a high-level say55 in articulating the We may conclude that the PC had
direction and the nature of the economic been able to unify not only the various
policies. Through the first new function economic policies of the Centre, but
it articulated, the future dimensions also those of the states with the help of
of the economic reforms and through these two new functions. Earlier, there
the second new function, it influenced had always been a lack of congruence
the works of the various ministries— among the policies of the various central
ultimately it seems as if the PC had been ministries and the ideas articulated by the
able to emerge as the real think-tank of PC.
development in the country.56
An ePitAPh to the Pc
The PC had also been able to influence
the economic policies of the states since On January 1, 2015, the government formally
abolished the PC by replacing it with the newly
2002 in a great way. Though the PC did
created body—the NITI Aayog. With this
not make the state plans57 it was able to
there ended an era in the economic history of
influence the overall economic policies of
independent India. Whether it was better to
the states. It had been possible due to the
revive the PC or abolish it has been a matter
setting of ‘monitorable targets’ for states
of much debate among the discipline experts,
for the same development indicators/ politicians and the media. The debate, at times,
areas as was been set for the Centre.58 The had emotional tones, too. But the government
states were liable for being monitored by has its own wisdom behind the action (a detailed
the PC concerning their performances discussion on it has been included as the last sub-
regarding these monitorable targets. This topic of this Chapter titled ‘NITI Aayog’).
way the Central Government had started As an ‘epitaph’ to the PC (may be an ‘ode’), it
having its say over the state governments will be quite relevant to have an eye on the report
via the new functions of the PC. of the Independent Evaluation Office (IEO) on
55. It is not without that the Government decides to the former which was submitted to the Prime
call in Montek Singh Ahluwalia, an economist of Minister Office by late June 2014. As per it, the PC
international repute to officiate as the eputy Chairman was created in response to the unique challenges
of the PC. Every idea and opinion of Mr. Ahluwalia
was understood by the coalition partners of the UPA faced by a nascent democracy and a fledgling
Government as a thing the Government is necessarily economy—it conceived a ‘top-down approach’
going to implement in future. One can imagine the to planning that envisaged a dynamic Central
increased role of the office of the C. here is always a
hue and cry every time the Deputy Chairman articulates government building up the economic and social
an idea or opinion. Though the PC is chaired by the PM, order of weak states. The report called the PC in its
it seems that the Deputy Chairman has started availing current form and function a hindrance and not a
enough autonomy to speak his mind.
help to India’s development. It further added that
56. Ibid.
57. As per the original mandate, the PC was supposed
it is not easy to reform such a large ossified body and
to formulate the state plans also. By 1960s, with the it would be better to replace it with a new body
decision to follow the multi-level planning (MLP) in that is needed to assist states in ideas, to provide
the country the states started having their own state
planning boards (SPBs).
long-term thinking and to help cross-cutting
58. In setting these targets the concerned states were reforms. Some of the major recommendations of
consulted approach of planning was followed. IEO on the PC are as follows: