NITI Aayog shouldn't be a one way top-down flow of ideas from the Centre to the States: Tamil Nadu

Says Centre took a bold step by abolishing Planning Commission, now it should take the logical step of enhancing the Finance Commission based devolution

The NITI Aayog should not be a one way top-down flow of ideas from the Centre to the States, but a genuine and continuing partnership with the States. A Strong Union can emerge only out of Strong States and India's governance structure has to reflect more and more federal features.

Speaking at the first meeting of the Governing Council of the NITI Aayog at New Delhi today, Tamil Nadu Chief Minister O Panneerselvam said the broad objectives and the intent have been expressed in the Resolution, how these are to be achieved is the key issue to be discussed in this meeting, he said.

While welcoming the decision to include State Chief Ministers in the Governing Council of the NITI Aayog, he said, the Council should not become a ritualistic exercise similar to the National Development Council and the Inter State Council in the past and processes and procedures for the Chief Ministers' Council should be laid down clearly, meetings should be held with adequate notice, agenda papers should be finalized after due consultation and circulated well in advance.

"To make the NITI Aayog a federally empowered institution with active participation of the States, the views of the States need to be heard at different levels in the hierarchy of the Aayog. An appropriate arrangement needs to be developed for this purpose," said the Chief Minister, who also suggested for a blue print with clearly laid down goals and objectives to be achieved within a given time frame.

The body should address the basic issues that confront the economy and how to resolve them, securing the consensus of both the Centre and the States and NITI Aayog should create sectorwise Strategic Vision documents.

NITI Aayog would also need to fit in with the United Nations initiative to establish a set of "Sustainable Development Goals" (SDGs) to be achieved by 2030. These SDGs are to replace the Millennium Development Goals (MDGs) which were set for achievement by 2015.

For several decades now, the Union Planning Commission had been holding Annual Plan discussions to finalise the Plan size for each State and it has been abandoned this year, question still remains - whether the Plan and Non-Plan distinction itself is relevant in the current context.

The continuance of the Plan and Non-Plan distinction appears to be even less relevant. He suggested the Plan - Non-plan classification in the Budget of the Centre and of the States could be dispensed with. This would help simplify budget documents, keep the focus firmly on functions and not lead to a proliferation of schemes.

He also raised concern on how the resource flow to States is going to be impacted by the abolition of the Planning Commission.

Centre has taken the bold step of abolishing the Planning Commission, it should also take the logical next step of substantially enhancing the Finance Commission based devolution, he said.