Abolishing the bifurcation between plan and non-plan expenditure would enhance the powers and responsibilities of the planning commissions at both central and state levels, said Rangarajan.
Commenting on the criticism against the recommendation of a high-level committee chaired by him, which suggested abolishing plan and non-plan expenditure, he said, “I do not think abolishing the distinction between plan and non-plan expenditure will undermine the role or importance of the Planning Commission either at the central or at the state level. Doing away with such distinction will enhance the powers and responsibilities of the planning commissions.”
What we are really pleading is for is let the Planning Commission look at the total expenditure of health, education, sanitation or any other field and decide on the total expenditure to be incurred in order to achieve the goals, he said.
The compartmentalisation of plan and non-plan expenditure has resulted in a situation in which the country has schools without teachers and hospitals without doctors because doctors and teachers are part of non-plan expenditure while schools and hospitals are part of plan expenditure.
It is to be noted that there was criticism from various parts that abolishing the classification of plan and non-plan expenditures would reduce the importance of the planning commissions set up by the central government.