An expert committee headed by Chairman of the Prime Minister's Economic Advisory Council C Rangarajan has said that Planning Commission should dispense with the exercise of approving annual Plans of states and instead hold a strategy or review meeting with representatives of the states.The panel recommended that the Planning Commission should be responsible for formulation of the Five-Year Plan while the task of firming up annual budgets should be entrusted to the Finance Ministry based on inputs from the Plan panel. The Committee also suggested removal of plan and non plan distinction in the Budget. It stated that all public expenditure should be split into capital and revenue expenditure.Dr. C. Rangarajan said that shift in budgetting approach is needed to ensure proper and timely implementation and monitoring of the centrally sponsored programmes and other schemes across the country.This, he said, will require changes in organisational structure besides appropriate interventions in human resource development and information technology. Speaking on the occasion, the Deputy Chairman of Planning Commission Montek Singh Ahluwalia said that the new approach advocated by the Committee will ensure better delivery of services particularly in the areas of health, education and infrastructure development.He added that requirement of man power like teachers and doctors is important for success of these schemes.AIR Correspondent reports the the Committee was constituted by the government in April last year to suggest steps to improve management of the public expenditure.