Planning in Governance

What is Planning in Governance?

At the most basic level, planning is about foresight.

In governance, planning means:

• Setting clear goals
• Choosing the best path to reach them
• Allocating resources rationally
• Anticipating future challenges

So, planning is not just budgeting or writing reports. It is a systematic, organized, and future-oriented exercise through which the state tries to shape development outcomes—economic growth, social justice, and regional balance.

In short:

Policy decides “what” to do, planning decides “how, when, and with what resources.”

Features of Indian Planning

Indian planning has evolved significantly over time, adapting to changing realities.

(a) Comprehensive Planning

Indian planning initially aimed at transforming the entire economy, not just individual sectors.

• Early phase: Focus on heavy industries and infrastructure
• Later phase: Greater emphasis on human development such as education and health

This shows that planning expanded from economic growth to social progress.

(b) Prospective and Perspective Planning

Indian planning combines:

• Long-term vision (Perspective Planning)
• Short- and medium-term action plans (Prospective Planning)

A good example is the work of NITI Aayog, which provided:

• A long-term vision document (Strategy for New India @75)
• Shorter action agendas and focused programs like the Aspirational Districts Programme

This ensures that vision does not remain abstract, and action does not become directionless.

(c) Financial Planning

Planning also means prioritizing scarce resources.

Budgetary support is aligned with policy priorities—health, nutrition, infrastructure, and social security.
Without financial planning, even the best-designed policies remain on paper.

(d) Inclusive Growth Orientation

Indian planning increasingly focuses on reducing disparities, not just increasing GDP.

Evidence of this shift:

• Large reduction in multidimensional poverty
• Faster progress towards Sustainable Development Goals

This reflects the idea that development must be broad-based and people-centric, not elite-driven.

(e) Democratic Planning

Planning in India is not meant to be imposed from above.

• Local governments and communities are involved
• Panchayati Raj Institutions play a role in implementation and prioritization

This strengthens ownership, accountability, and relevance of plans.

(f) Public Sector Focus with Market Regulation

In the early decades, planning relied heavily on → State-led industrialization, Public sector dominance

The Mahalanobis Model emphasized capital goods industries to build long-term capacity.

(g) Regulation of the Private Sector

To prevent concentration of economic power, the state regulated private enterprise.

• The MRTP Act aimed to curb monopolies and promote fair competition.

(h) Shift Towards Private Participation

Post-1991 reforms marked a clear transition:

• Reduced state dominance
• Greater role for markets and private investment
• Rising FDI inflows

Planning did not disappear—it changed character, becoming more facilitative than controlling.

Multi-Level Planning in the Neo-Liberal Development Paradigm

This topic directly reflects UPSC’s expectation of theory + contemporary governance.

What is Multi-Level Planning?

It refers to coordinated planning at central, state, and local levels, ensuring alignment while allowing flexibility.

Why is it important in the Neo-Liberal Paradigm?

The neo-liberal approach emphasizes → Decentralization, Market efficiency, Private participation

In such a system, centralized micromanagement becomes inefficient.

Key Features of the Neo-Liberal Paradigm

• Decentralization of decision-making
• Market-oriented reforms
• Public–Private Partnerships (PPP)

How Multi-Level Planning Improves Governance

• Better local participation → plans reflect real needs
• Responsive governance → quicker adaptation to local changes
• Improved accountability → citizens can question local authorities
• Efficient resource use → reduced duplication and delays

Examples

• Panchayati Raj institutions in India after constitutional amendments
• EU cohesion policy using coordinated regional planning

Data-Based Policymaking in India: Challenges and Way Forward

Modern governance increasingly relies on evidence, not intuition.

Data-based policymaking means using reliable, timely, and accurate data to design, implement, and evaluate policies.

Challenges

(a) Political Influence on Data

Data may be delayed, modified, or suppressed due to political concerns.
This undermines trust and weakens decision-making.

(b) Poor Utilization of Available Data

India has vast datasets, but:

• Analytical capacity is limited
• Data often remains underused

(c) Gap Between Official Data and Ground Reality

High numerical coverage does not always translate into meaningful outcomes.

Example → Accounts opened, but not actively used

This highlights the difference between output and outcome.

(d) Limited Transparency and Access

Restricted access prevents → Independent analysis, Civil society participation, Public accountability

Recommendations

Data Democratization

Open access to datasets enables → Better scrutiny, Innovation, Evidence-based public debate

Civil Society Participation

Independent surveys and grassroots data help → Validate official figures, Capture lived realities

Use of New Technologies

Digital tools, AI, and real-time dashboards improve → Monitoring, Targeting, Crisis response

The CoWIN is a strong example of real-time data use at scale.

Strengthening State-Level Data Systems

As recommended by expert committees:

• States need analytical capacity
• Real-time decision-making improves service delivery

Here is the replicated version of the notes with clean, UPSC-ready formatting, maintaining clarity, hierarchy, and exam-oriented presentation:

Direct Benefit Transfer (DBT) Scheme: Progress and Limitations

Progress of the DBT Scheme

• Elimination of Middlemen & Leakages
  Aadhaar-linked transfers prevent fraud and ensure that benefits reach the intended beneficiaries directly.
  Example: PAHAL eliminated 4.23 crore fake LPG connections, resulting in savings of ₹59,599 crore.
• Enhanced Transparency & Accountability
  Real-time tracking of funds reduces diversion and improves monitoring mechanisms.
  Example: PM-KISAN transfers ₹6,000 per year directly into farmers’ bank accounts.
• Targeted Welfare Delivery
  Aadhaar-linked bank accounts help eliminate duplicate and ghost beneficiaries.
  Example: PM Ujjwala Yojana used DBT to provide over 8 crore LPG connections.
• Efficient Crisis Relief
  Direct transfers enable swift disbursement during emergencies, minimizing bureaucratic delays.
  Example: COVID-19 relief under PMGKY reached crores of beneficiaries within days.

Limitations of the DBT Scheme

• Digital Divide
  Limited internet access and low digital literacy in rural areas exclude vulnerable groups such as the elderly and persons with disabilities.
  Example: Only 24% of rural households have internet access compared to 66% in urban areas, reducing DBT effectiveness in rural regions.
  • Gender Dimension: Women are 33% less likely to use mobile internet services than men, leading to gender-based exclusion from DBT benefits.
• Weak Banking Infrastructure
  Inadequate banking facilities and poor connectivity in remote areas delay access to benefits.
• Errors in Identification
  Incorrect or missing identification can result in exclusion of genuine beneficiaries.
  Example: In Jharkhand, a reported starvation death occurred after a ration card was cancelled due to an Aadhaar-related issue.
• Limited Administrative Capacity
  Delays in fund disbursement and weak grievance redressal mechanisms reduce overall scheme efficiency.