Niti Ayog replaces its 5-year-plan with 3-year action plan

New Delhi: With the conclusion of 12^th tandem of 5-year-plan, NITI Ayog Vice chairman Arvind Panagariya anounced the demolition of the ancient concept of 5-year-plan, introduced in 1957 as one of the major economic approach adopted by first Indian PM Jawahar lal Nehru and followed since then.

The governing council which will meet on April 23 will give a final structure to the proposed 3 year action plan; part of a seven year strategy paper and a 15 year vision document.

The new 3 year action plan which will last till year 2031-32, is introduced to widen India’s objective to meet UNDP’s 2030 sustainable goals and for optimum utilization of the funds sanctioned to the states by 14^th Finance Commission recommendations. For this the state share in central taxes has also been increased from 32 per cent to 42 per cent.

Bringing on to this effect, Panagariya said “Year 2016-17 is the last year for the 12th 5 year plan and the 12th five year plan will be the last 5 year plan scheme for India. In place of this we will bring forth a 15 year vision document which will last till year 2032-32.”

“A strategy document with a time span of seven years and an action plan of five years will also be introduced, with the cooperation of all states in the country,” said Panagariya. He further stated, “Years 2017-18, 2018-19 and 2019-20 are the last years of implementation for the 14th Pay Commission, which will also form a base for our first action document.”

This 3-year-plan is likely to cover internal security and defence which was not included in initial 5-year-plan.

N.C. Saxena, former member of the planning commission, said the government had to prepare a 15-year agenda to meet sustainable development goals by 2030.

Quick facts:

• The 12^th and the last year plan of the five year plans was meant to end on 31^st March.
• It has been given an extension of six months to allow ministries to complete their appraisal.
• This 3-year action plan came into effect on April 1.
• PM Modi is the President of the governing council of Niti Ayog.
• Chief Ministers of all the states are active members of this council.
• Niti Ayog will witness its first governing council in last 20 months.
• Till now only two meets of this council have taken place both of which were held in 2015.