Signalling a “substantial” shift in the Centre’s Budgetary practices, NITI Aayog member, Bibek Debroy, on Wednesday said the government is seriously considering three proposals to scrap the Plan and non-Plan classification of expenditure, abolish the Railway Budget and change in the financial year.
“These are all complicated issues. Are they probable? Yes…Perhaps, two of the three are probable from 2017 and all three by 2018,” he said at a conference organised by the NITI Aayog for discussions with state governments.
Announcing that the Centre would also be moving away from the system of Five-Year Plans to a 15-year vision document, NITI Aayog Vice-Chairman Arvind Panagariya asked states to work out similar proposals and send them to the Centre. “The national vision must reflect the aggregate vision of the states,” he said, adding that the Aayog is working on a three-year strategy as well as a seven-year document.
Prime Minister Narendra Modi will also chair a meeting at the NITI Aayog on Thursday to discuss the 15-year vision document that would outline the government’s long-term development objectives starting 2017-18.
Kerala, however, announced that it would continue with the Five-Year Plan model and commence its 13th Plan from the next fiscal.
While the Centre and a number of States will be begin to classify their spending only in terms of revenue and capital expenditure from 2017-18, Kerala said it would continue the distinction of Plan and non-Plan expenditure and asked the Aayog to ensure that its fund transfers were not impacted.
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