Plan Process

This refers to World Banks study on central planning in India. The report has rightly described the Banks role as that of a development bank (February 10).

The Planning Commission in India is only an advisory body. Each state too has a planning board. Budgets are usually prepared by the central and state governments, respectively. However, it is a short-term plan and the actual functions of planning and control are with the respective governments.

In South Korea, the budgeting function lies with the economic planning board. Hence, it can enforce financial discipline.

In a federal set up, the power to enforce standards are with the federal or central government. Lack of clarity in Centre-state relations comes in the way of effective functioning of some institutions.

Hence, there is a need to review institutional arrangements within the framework of our Constitution.