Changing role of Planning Commission

·  Over the years, the Indian planning system has moved from centralized investment planning to a more directional planning methodology. Today the Planning Commission concerns itself with evolving a long-term strategic vision of the economy, decides on priorities and works out the sectoral targets consistent with the strategic vision and priorities. It also indicates the initiatives the government needs to take both in terms of investments and policy changes to realize these objectives. 

·       Integrative role in the development of a holistic approach to policy formulation in critical areas of human and economic development, especially where both the Centre and the States have a role to play. In the social sector, schemes which require coordination and synthesis, coordinated policy formulation.

·         Emphasis on maximizing the output of the economy by using our limited resources optimally. 

·         Mediatory and facilitating role: With the emergence of severe constraints on available budgetary resources, the resource allocation system between the States and Ministries of the Central Government are under strain. This requires the Planning Commission to play a mediatory and facilitating role, keeping in view the best interests of the country. It has to ensure smooth management of change and help in creating a culture of high productivity and efficiency in Government, both at the Centre and in the States. 

·      Systems change role: The key to efficient utilization of resources lies in the creation of appropriate institutions and self-managed organizations at all levels. In this area, Planning Commission plays a systems change role and provides capability within the Government for developing better systems and institutional design. 

·         Information dissemination role regarding best practices obtaining in different States and institutions