Government may replace the Five-Year Plan system with a medium-term fiscal framework that will project revenue and expenditure allocations for the next three years beginning 2017-18.
Finance Minister Arun Jaitley has already announced in his Budget speech about doing away with the classification of Plan and Non-Plan expenditure in the backdrop of 2016-17 being terminal year of the 12th Plan period (2012-17).
“Last two years of the 12th Five Year Plan (2012-17) will be used as transition. One direction seems to be clear that perhaps we will not be doing Five-Year Plans,” NITI Aayog Vice Chairman Arvind Panagariya said during an online talk.
He further said, “One possibility is to introduce medium term fiscal framework planning which may entail some sense of prediction what the next two or three years, and what the revenues are likely to be. How the resulting expenditure will be allocated across different ministries. Next year, it (government) may roll out for the next three years.”
-more at Financial Express