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State governments want NITI Aayog’s role to be reduced in allocative decisions and want it to play the role of a knowledge organisation.
This emerged at a conference organised by the NITI Aayog which was attended by representatives of State governments.
“It (NITI Aayog) should also play the role of documenting and disseminating the best practices of States so that the national development effort can receive a fillip. It should concentrate on longer term strategic issues and also act as an advocate for the States,” an official statement said.
At the meeting it was also stressed that the 14th Finance Commission has significantly enhanced devolution of resources to the States which means greater responsibility. Arvind Panagariya, Vice-Chairman of NITI Aayog, called upon the States to seriously consider reforms in agriculture and in the ‘factor markets’ – land and labour.
Panagariya also underlined the need to gradually shift our focus from planning to policy so as to influence behaviours of both public and private sector in view of the changed economic scenario with major share of investments coming from the private sector.
He emphasised that since the size of the economies of many States is larger than that of many countries, they require much greater interaction not just nationally but also with international players.
Sindhushree Khullar, the CEO of NITI Aayog, presented a roadmap for bi-annual structured consultations of the NITI Aayog with States.
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