The Eleventh Plan document has discussed at length the various anomalies and inconsistencies that arise out of the present classification of expenditure into the categories of plan and non-plan. These anomalies have hindered the efficient management of public resources. The Plan document has also referred to the major changes in the implementation machinery of the Plan that have occurred in the past several years and has emphasized the need to clarify the scope of the public sector plan.

Other members of the Expert Group includes:

(1) Member (FR), Planning Commission

(2) Secretary, Planning Commission

(3) Deputy Governor, Reserve Bank of India

(4) Secretary, Department of Expenditure, Ministry of Finance

(5) Chief Economic Adviser, Department of Economic Affairs,

Ministry of Finance (6) Controller General of Accounts, Ministry of Finance

(7) Representative of Comptroller and Auditor General of India

(8) Dr. M.G. Rao, Director, National Institute of Public Finance and Policy, New Delhi

(9) Dr. Nitin Desai, Honorary Professor, ICRIER, New Delhi

(10) Prof. D.K. Srivastava, Director, Madras School of Economics

(11) Prof. Ravinder Dholakia, Professor, IIM Ahmedabad

(12) Principal Finance Secretary, Government of West Bengal

(13) Principal Finance Secretary, Government of Tamil Nadu

(14) Principal Finance Secretary, Government of Madhya Pradesh

(15) Principal Finance Secretary, Government of Assam

(16) Principal Finance Secretary, Government of Maharashtra

(17) Adviser (FR), Planning Commission - Member Secretary

The Terms of Reference of the Committee are as follows:

(i) To clearly define the scope of the Public Sector Plan and the expenditures incurred there-under keeping in view the changes in the administrative machinery for implementation of the Plan, and the new mechanisms that have evolved such as special purpose vehicles and public-private partnerships.

(ii) To suggest an action plan for the abolition of the classification of expenditure into Plan and Non-Plan, which includes the detailing of the changes in the mandate of the various organizational units in the Government that deal with allocation of public resources and the management of public expenditure.

(iii) To suggest a proper framework for taking a comprehensive view of the total transfer of resources from the Centre to the States, including ensuring its accounting and reporting in a uniform manner.

(iv) To examine the accountability concerns arising out of the direct transfer of the funds to the States/ district-level bodies under Centrally Sponsored Schemes and to suggest an appropriate mechanism to guard against dilution of accountability.

(v) To examine the classification of expenditure into Revenue and Capital in the context of the constitutional provisions, and requirements under the Fiscal Responsibility Acts, and to suggest measures to address the inconsistencies in our current system of classification so as to ensure rational and efficient public expenditure management. In this context, the Committee should consider the merit of classifying expenditure as revenue or capital depending on the end use.