The Independent Evaluation Office (IEO) has recommended the government to abolish the Planning Commission and constitute Reform and Solution Commission as a government think tank through an Act of Parliament. The IEO, which was set up by the Planning Commission in the previous year, assesses the effectiveness of government programmes, institutions and policies.
The IEO, in a draft note sent to the Prime Minister’s Office (PMO), has suggested the government that the powers of disbursing funds to the state governments should be given to the finance ministry, which is accountable to Parliament unlike the Plan Panel. The IEO suggested that Finance Ministry should disburse funds on the recommendation of Finance Commission, which already existed in country and has authority bestowed upon it by the constitution. Financial commission should be a permanent body responsible for the allocation of centrally-collected revenues to the states working with the help of a panel of advisors having domain-level expertise, the notification added.
Regarding the working of planning commission, the IEO noted that Plan Panel is susceptible to pressures from the PMO and exceeds the scope of its authority which leads to partial treatment in allocation of resources amongst the states. Further, Panning Commission consist mostly IAS officer having less domain knowledge, making the panel structure same as central ministries in way of its administration.