Rangarajan panel for ending annual plan consultations with CMs

NEW DELHI: Chief Ministers may not have to visit Yojana Bhawan every year for Plan panel's approval for annual plan outlays, if the proposals of the Rangarajan Panel are accepted by the government.

The high-level committee on efficient management of public expenditure said, "With the removal of Plan and Non-Plan distinction, there may not be any need for approval of State Plans as per the current practice".

Under the current dispensation, Chief Ministers of all states visit the Planning Commission every year to seek approval of the annual plan outlay.

Besides the Chief Minister of the concerned state and Planning Commission Deputy Chairman, these meetings are attended by high ranking officials of the state and central ministries.

The Commission, report said, could hold a strategy or review meeting with representatives of the states.

"States may provide information about the Budget or Plan function-wise to Planning Commission or Ministry of Finance to enable consolidated information to be prepared and available in public domain", the report suggested.

The government had constituted the panel headed by the Prime Minister's Economic Advisory Council Chairman C Rangarajan in April last year to suggest steps to improve the management of the public expenditure.

Among other things, the report has suggested removal of distinction between Plan and Non-Plan expenditure.