Definition of Planning

Planning is a process which involves the determination of the future course of action. It is the responsibility of the executive and it involves anticipating influencing and directing the nature and degree of change

Importance

Increases organisational ability to adapt to future changes and eventualities – the future is uncertain and organisations operate in a dynamic context. Therefore need a road map defining macro goals and strategies. Planning involves choosing among competing alternatives by looking at the long-term impact. It requires a 360* perspective and synthesis of individual and organisational goals and efforts. Leads to greater productivity. It requires monitoring, supervising, measuring and correcting.

Planning Commission

Role of Planning Commission
- Resources Identification
- Prioritization
- Plan formulation
- Identify growth retarding factors
- Have institutional mechanisms to achieve objectives
- Do plan evaluation
Changes in Planning post-LPG era
- Centralised to decentralised planning
- From imperative to indicative (giving promotional stimulus to stakeholders – Pvt sectors and states)
- From national plans to sectoral/regional/holistic plans
Criticism against PC
- Highly centralised approach
- Less involvement of states
- NDC – National Development Council (PM + CM) failed to become an effective body and there was more D3 on politics rather than on development and economics (Sarkariya Commission recommended NDC into NEDC – National Economic Development Council)
- Armchair Planning – Remote sensing
- Less focus on PI
- Artificial Plan and non-plan distinction – missing line of sight between PC, FC and Budgeting
- States were critical of PC getting into the role of an allocator. Since its grants were discretionary and even discriminating
- Outlived its utility – it was conceived in an era when the public sector dominated. Post LPG it failed to adapt and its major focus continued to be plan formulation and project evaluation

Ideally, PC should have played the following roles post-LPG

Investment Planning
Interest mitigation (between C&S, among ministries )
Coordination
Systems change role – Innovation-driven
Culture of productivity
Consultancy
Think Tank
Scenario-based planning. For e.g the 12th plan, PC had compared to a flotilla – where boats are independent but paths are interdependent and when the captain of the lead boat (centre) gives the signal to change direction, other following boats need to capture the signal and act.
RADAR Role
- PC’s role needs to change from an input allocator to a strategic guide/councillor, itself observed ” Even the smaller states want PC to tell them how to spend money better and not where to spend money.
Strategic Role
- Facilitate and mainstream reforms
Push decentralised planning and the principle of subsidiarity
Provide independent monitoring and evaluation of government policies, and programmes – in fact, the IEO – Independent evaluation office was started in 2014 but was discontinued after the new government came in and is expected to be replaced by DMEO – Directorate of monitoring and evaluation Organisation