Modi may recast the role of Planning Commission, FM to deal with states now

New Delhi: After scrapping the Empowered Group of Ministers (EGOMs) and Group of Minsters (GOMs), the Narendra Modi government may now be targeting the Planning Commission for an overhaul. According to sources, the Union government is likely to revamp the role of the Planning Commission.

As per the new plan, the Finance Minister may deal with states directly on their annual fund allocation. Currently, the states deal with Planning Commission for annual plans. Sources in the government believe that the move will ensure greater efficiency in centre-state relations.

The government is not too keen with the outdated commission and its 5 year plans. A delay in the appointment of the Vice Chairman of the Planning Commission can also be seen as an indication for a likely overhaul.

The PMO had been reviewing the current model of the commission and the new model, they believe, can remove the bottleneck and hurdles.

Apart from the annual fund allocations, the government is also likely to bring other structural changes in the role of the Planning Commission.

The Cabinet on Wednesday, also gave its formal nod to the Prime Minister's decision to scrap 30 GoMs and EGoMs set up by the previous UPA government. Dismantling the legacy of UPA rule, Modi had on May 31 abolished all the 30 EGoMs and GoMs and told ministries and departments concerned to take speedy action on pending matters.

The Prime Minister's Office will now assist ministries in tackling complex issues. "All the facts related to the GoMs were placed before the Cabinet. Governments used to function on the basis of GoMs and we decided to end these. We confirmed the decision to abolish such EGoMs and GoMs," Law Minister Ravi Shankar Prasad said after the Cabinet meet.

Announcing the decision to scrap nine EGoMs and 21 GoMs, the PMO had said this would expedite the process of decision-making and "usher in greater accountability in the system." The ministries and departments will now process the issues pending before EGoMs and GoMs and take appropriate decisions at the level of ministries and departments itself, said the statement.