In post-Independence India, the biggest challenge before the Union government led by Nehru was achieving economic growth. He formulated Five-Year plans with thrust on development in key sectors.
In order to foster a planned economy, Nehru established the Planning Commission on 15th March, 1950, through an executive order whereby the Prime Minister became the Chairman of the Commission.
The Five-Year plans were formulated for balanced utilisation of the country’s resources, to ensure better living standards for the people and achieve high growth rate as well as economic stability.
Over the years, the Planning Commission became a powerful institution to determine plans and policies for both the Centre and states. The Deputy Chairman of the Planning Commission wielded considerable power in resource allocation to the states and determined the plan size of individual states each year before the budget exercise. Eminent economists like Manmohan Singh and Montek Singh Ahluwalia held the position for consecutive terms.
State-level Planning Boards were constituted in line with the Planning Commission with a view to giving shape to the state plan and overseeing implementation of plans and programmes of the government.
While Planning Commission was a Nehruvian legacy, the State Planning Board is attributed to Biju Patnaik, one of his ardent followers. The State Planning Board was established in Odisha in 1963 when Biren Mitra succeeded Biju Patnaik as chief minister and Biju Patnaik became the Chairman of the Board to look after planning and development of the state.
As Chairman of the Planning Board, Patnaik enjoyed substantial influence over the government. He continued in office till 29th January, 1965.
Many other state governments also constituted Planning Boards in their respective states. In September 1967, Kerala set up the State Planning Board with Chief Minister EMS Namboothiripad becoming its Chairman. Till date, Kerala State Planning Board is considered to be one of the best in the country.
Eminent administrators and economists are appointed as Vice-Chairman of the Board and there are full-time members to look after different sectors. It has a separate office building and own establishment.
However, the State Planning Board in Odisha has been in a moribund state for several years. The Board does not function in a proper manner and no meeting has been held for a long time. In the early 1990s, when Biju Patnaik came to power, he wanted to revive it and appointed some sectoral experts as members. However, it could not function in a meaningful manner. So much so that it has become a rehabilitation centre for political leaders of the ruling party without any purpose.
In the meantime, the first NDA government in the Centre dissolved the Planning Commission and established Niti Aayog in January 2015. This coincided with abolition of Plan and Non-Plan distinction in the budgetary system. It was replaced by Programme Expenditure and Administrative Expenditure in the new era. Allocation of resources to the states was vested with the Finance Ministry which was earlier looked after by Finance Commission. The Niti Aayog was designed as a thinktank for the national and sub-national governments to render policy support in key areas.
In the emerging scenario, the State Planning Board has become redundant and needs to be revamped in line with Niti Aayog. It should focus on the long-term development agenda for the state.
Odisha is going to complete its centenary in 2036 and it needs a roadmap to achieve targeted goals in different key sectors like agriculture, health, education, infrastructure, etc. A Vision Document 2036 encompassing all sectors requires to be developed.
India is a signatory to achieving Sustainable Development Goals (SDG) by 2030 as a global development agenda. Niti Aayog is monitoring statewise progress in achieving the goals and targets.
Sustainability is a fundamental issue in the development paradigm. SDG goals and targets can be good indicators for sustainable development. Therefore, there should be a Commission for Sustainable Development in the state replacing the current system of state planning board. It should be mandated to chalk out long-term strategies for achieving sustainable development in different sectors and act as an oversight mechanism for all plans and policies of the government.
The Chief Minister may be the Chairperson and there should be a Vice-Chairperson and full-time members drawn from different sectors. The CEO may be a senior retired bureaucrat having experience in planning and financial management. The Commission may follow the practices of Niti Aayog and best practices of other states. It would be a unique experiment in the entire country and prove to be the best model for others to emulate.
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