Kerala Chief Minister Pinarayi Vijayan said that NITI Aayog has not “played the much expected role of a facilitator” in the last four years and perhaps was not a substitute for the erstwhile Planning Commission.
Vijayan said that after doing away with the plans at the national level, states have lost the Gadgil formula and grants which they used to get as assistance earlier. Besides, states now have also to bear a higher share—40 percent instead of the earlier average 25 percent—in many centrally sponsored schemes, which result in shrinking fiscal space, he said.
He said transformation of the Planning Commission to NITI Aayog has adversely affected states like Kerala, which had lost a source of funding for its Five Year Plans. “I hope that my colleague Chief Ministers would agree with me that NITI Aayog in the present form has not played the much expected role of a facilitator in the last four years.”
He said the Centre has recently been spending on subjects in the State List, resulting in centralisation in design of welfare schemes, which by economic reasoning, could be effectively done by governments at the State and local level.
“For a strong nation, a strong Centre, strong states and vibrant local governments are essential pre-requisites,” he said adding the foremost aim to fulfill people’s aspirations was decentralisation of power to them as mandated in constitutional amendments.
With PTI inputs