Panagariya for strategic planning with long term goals

India is likely to switch over to strategic planning, under which efforts would be made to achieve long-term goals, from traditional five-year planning system, NITI Aayog Vice-Chairman Arvind Panagariya said today.
"As per the Cabinet Resolution which created NITI Aayog, strategic planning will be done. We will not think keeping in mind five-year targets rather we will think with a horizon of 7-8 years," Panagariya said in an interview to Doordarshan.
Elaborating further he said, "the way Planning was done so far traditionally, if that does not continue, which is quite possible, then there would be no (five year) Plan. Therefore there would be no distinction of Plan and Non-Plan expenditure."

However, he ruled out scrapping of the 12th Five-Year Plan (2012-17) and said that the remaining two years of the five-year policy period would be used as transition to design the structure of the planning in India.
Elaborating further he said that India will not plan in terms of targets but in terms of how can the country achieve high growth and low inflation in future.
He said that India will complete 75 years of Independence by 2022, "once we will decide that where we would want to be.., then we will thing about ways of doing it."

Referring to recommendations of the 14th Finance Commission to raise states' share in union taxes from 32 per cent to 42 per cent, Panagariya said that this will increase the amount of untied funds which go to them.

"States will get untied money that will be 42 per cent. Now NITI Aayog role will change as rather than emphasising that we give money to states, we will give them advice. That is their money," he said.
He was of the view that more untied money in hands of states would enable them to prioritise their spending. However, he added that the onus of delivery would also be on them and they would loose elections if they would not perform.