Prime Minister Narendra Modi announced in Lok Sabha that he would consult chief ministers on Sunday to discuss the framework of the new body to replace planning commission. The PM is likely to discuss revisiting of Gadgil-Mukherjee formula for deciding the method by which the states receive funds from the Centre, sources said.
The new body to replace the panel is likely to have 10 members with half of them being representatives of the states.
The Gadgil-Mukherjee formula which follows a six-point criteria including population and per capita income had been criticised for not doing justice with the states pushing for reforms.
“The issue would be discussed under the segment fund flow to the states from the Centre through annual state plans. The Prime Minister is very keen to get feedback from the states on fund flow,” a planning commission advisor said, adding that the consultation was part of PM’s cooperative federalism agenda.
Modi told members that his government has initiated a series of consultative processes with a cross-section of society, including experts, to determine the direction that the new plan panel will have.
“Our government intends to collect and collate this information to determine how the planning commission as an institution is to work over the next five years,” he said in his intervention in the Question Hour.
On Sunday, planning commission secretary Sindhushree Khullar would make a presentation of the proposed framework of the new body to be called Niti Commission, meaning a think tank to give a new direction to India on infrastructure, innovation, technology and ecology.