Panning Commission: Wings to be clipped?

[pmaitra]

Finance ministry for clipping plan panel's wings

The finance ministry has made a pitch for taking away Planning Commission's key role of allocating development funds to central ministries. If implemented, the commission's function will get limited to formulating five-year plans.

In the Economic Survey, the finance ministry has said there is "sub-optimal resource allocation" and "diffused accountability" in the current budgetary process where it is involved along with the plan panel in allocating funds.

While suggesting a reform of budgetary process to make it more efficient, it has recommended "the unification of budget making at the ministry of finance".

Currently, the finance ministry and Planning Commission decide the level of central support to plan schemes and the panel then allocates funds.