Question : PERFORMANCE EVALUATION OF PLANNING COMMISSION .



(a) whether the Government has reviewed the success achieved by the Planning Commission in its objective of raising the living standard of the people;

(b) if so, the details and the outcome thereof;

(c) whether the Government proposes to constitute an expert group to evaluate the performance of the Planning Commission and redefine its role and objectives so as to relate the planning process to the life of the common man;

(d) if so, the details thereof and the time by which it is likely to be constituted; and

(e) if not, the reasons there for and the steps taken to revamp and reform the planning process in the country?

Answer given by the minister


MINISTER OF STATE FOR PARLIAMENTARY AFFAIRS AND PLANNING (SHRI RAJEEV SHUKLA)

(a) & (b): The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community.

The Planning Commission was charged with the responsibility of making an assessment of resources of the country, augmenting deficient resources, formulating plans for the most effective and balanced utilization of resources and determining priorities.

This involves allocating Plan funds to various Ministries / Departments and to the States every year, based on discussions with them on their Annual Plan proposals for various schemes. It also includes reviews of policy approaches which are a critical part of Plan formulation.

The progress made towards Plan objectives is reviewed periodically in Five Year Plans and also at the time of Mid-Term Appraisal of the Five Year Plans, and corrective measures suggested are incorporated in the next Five Year Plan.

The impact of all these activities and of the various schemes implemented by the Central Government and the States is reflected over time. The table given below indicates the year-wise per capita income and the growth rate.

The average rate of growth in per capita income measured in terms of Net National Income (NNI) at factor cost at constant prices (2004-05), is 5.6% per year during 2000-01 to 2012-13. The decline in percentage of persons below poverty line at all India level, as per the Tendulkar Methodology, is from 37.2% in 2004-05 to 21.9% in 2011-12.

	Table	Per Capita Net National Income (NNI) at factor cost at 2004-05 Constant Prices	(All India)
Year	Per Capita NNI	Annual Growth	(in Rupees)	rate (%)
2000-2001 20,362	1.8
2001-02	21,065	3.5
2002-03	21,575	2.4
2003-04	23,005	6.6
2004-05	24,143	4.9
2005-06	26,015	7.8
2006-07	28,067	7.9
2007-08	30,332	8.1
2008-09	31,754	4.7
2009-10	33,901	6.8
2010-11@ 36,342	7.2
2011-12	38,037	4.7
2012-13#	39,168	3.0
Annual Average Growth Rate	5.6
Source: Central Statistics Office (CSO).
# Provisional Estimate; 1st Revised Estimates (RE); @ 2nd RE; 3rd RE 

(c) to (e): Planning Commission has been evolving its strategies by way of continuous internal assessment of its working. It has sought to keep itself abreast with the latest developments and aligned its policies in such a manner that keeps the interests of the common man in mind.

There is presently no proposal of the Government to constitute an Expert Group for evaluating the performance of the Planning Commission and redefining its role. However, the Commission regularly sets up groups of experts on several aspects of the economy to improve its work on policy.

The agenda for change in Planning Commission’s role and organization is pro-actively being pursued by the Planning Commission and is effectively being led by fresh initiatives in bringing about changes in the process of Planning, communicating with external stakeholders through an active engagement and implementing the agenda in the 12th Five Year Plan. It is felt that there is not only an awareness for the need for change in the role of Planning Commission, but also an effective ownership of the agenda for change by the Commission and its Members.

The 12th Five Year Plan reflects in adequate measure these changes, which has been prepared on the basis of extensive stakeholders consultations. Besides analysing the current status of different sectors of the economy, it has recommended policies, processes and schemes to achieve its objective of faster, more inclusive and sustainable growth, which is a testimony of the Planning Commission’s resolve to change itself with time and fulfil its role, envisaged in the Resolution of 1950, referred in answer to part (a) of the question above.

In view of this, it is felt that setting up another Expert group may not be required at this stage.