No it should not be abolished. Abolishing the Planning Commission would be detrimental to the progress of the country.
In any economy, either market economy or socialist economy, planning is needed to cobble up different resources, human as well as physical, and streamline these resources into productive avenues.
This becomes all the more important in a huge country like India which though falls under the developing country category but its performance on many counts is not much better than a less developed country. This is despite the fact that India is abundant in natural as well as human resources.
The problem is not with the Planning Commission. Rather the disease lies in underutilisation of resources over the years and this underutilisation of resources is due to lack of implementation of many programs and policies particularly at the State level.
State governments complain of resource crunch and inadequate financial decentralisation from the Union government. It has been more than two decades when 73rd and 74th amendment Act came into vogue which provided for decentralisation.
However, the process of decentralisation has not been that effective due to resistance of States in disbursing adequate funds and delegating adequate powers to the local governments.
Thus, it would be more prudent that Planning Commission is strengthened by weeding out inefficiencies rather than scrapping it all together.
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