NEW DELHI: As the last Five-Year Plan approaches its expiry date, signalling the end of an era, the Narendra Modi administration is bracing for the next “disruptive” agenda in Centre-State relations.
States will have to meet specific targets to avail fund allocations under various Centrally-sponsored schemes. The NITI Aayog’s Three-Year Action Plan for the purpose will be unveiled this month. Last week, taking a break from his hectic campaign schedule across UP, the PM went through detailed plan presentations. NITI Aayog will hold a meeting of senior officials of all states to sensitise them on the impending changes to avoid a backlash.
“The 12th Five-Year Plan will end on March 31, marking the end of the Planning Commission, which has guided national socio-economic development. The new Three-Year Action Plan starts from April 1, ending the prevailing system in which the Centre releases money and patiently waits for state governments to implement the schemes. Now, they can either meet their targets or face the prospect of funds drying up,” said a top official of the NITI Aayog.
The objectives of demonetisation will be escalated to the next level. “If the Food Corporation of India (FCI) doesn’t digitally procure food grains from farmers at minimum support price (MSP), state governments will not be allowed to buy grain from it. State governments will have to make all centres of procurement in their areas electronic,” sources said.
In contrast to the current practice of the Centre releasing funds on the basis of the utilisation certificates furnished by states, the Modi government will monitor their performance on stated targets, which will be measurable. “The Rashtriya Kisan Vikas (RKV) scheme, for instance, will have specific targets for each states where the areas will be identified. If they don’t meet them, funds will stop,” sources said.
The Centre is also gearing up to push state governments to adopt key reforms to become eligible for funds. “We have patiently waited for the state governments to adopt a number of reform oriented legislative bills. But our experiences have largely been negative. Therefore, the reform agenda arrived at after consensus will need to be adopted by them, and the states doing so will get incentives,” said a senior official of the NITI Aayog.