In a federation close coordination between the central and state governments in the sphere of development policy and administration is essential for a balanced and rapid socio-economic development. Unlike the Center, states have Planning Department, and not Planning Commission.
In each State there is a State Development Committee consisting of the Chief Minister and Ministers in charge of departments concerned, as he considers necessary. The Committee is responsible for planning, supervision and co-ordination. Besides, there is, in each State, a Development Commissioner who is responsible for directing Development Projects in the State and acts as Secretary to the Committee.
He is also responsible for co-coordinating the work in all the Rural Development Projects. He is a very senior officer in the States, usually the Chief Secretary or Additional Chief Secretary. He is not the head of an individual development agency but ensures co-ordination, as the head of a team consisting of heads of all the development departments.
In 1972, the Planning Commission had recommended to the States that their Planning Departments should be made more competent by setting up the following units where they did not exit:
(1) Perspective Planning Unit.
(2) Monitoring, Plan Formulation and Evaluation Unit.
(3) Project Appraisal Unit.
(4) Regional District Planning Unit
(5) Plan Coordination Unit.
(6) Manpower and Employment Unit.
State planning board
The ARC recommended setting up of State Planning Boards for the formulation and continuing evaluation of five-year plans. These planning boards should have their own secretariat to help them in the adequate discharge of these functions.
All the State Governments have set up State Planning Boards. The position of the Board and its effectiveness in the planning process varies from state to state.