Addressing inequality in fiscal capacity across states through revenue expenditure equalization will remain sub-optimal unless there is symmetric access to capital investment for balanced regional development. Though the abolition of Planning Commission and the elimination of plan and non-pan distinction in government expenditure were aimed at improving India’s public financial management system, it is time now to examine whether the new institutional mechanism post the abolition of the Planning Commission has helped in achieving this objective. When it comes to balanced regional development, an in-depth analysis of regional investment by the Union and States after the abolition of the Planning Commission is necessary. Any policy for the future growth also needs to address the climate sensitivity of investment to address inequality in development fuelled by climate change. A new institutional mechanism for greater flow of capital resources to the poorer regions is essential to deal with the challenges of regional development disparity across States.