Laxmikanth Test: Planning Commission - UPSC

In 1950, the Government set up a Planning Commission to help, design and execute suitable policies for economic development. Both the state and the private sector were to play important and complementary roles in increasing production and generating jobs. So, the role of the Commission was to define which industries should be initiated by the state and which by the market, how to achieve a balance between the different regions and states. Ultimately, lifting India and Indians out of poverty and building a modern technical and industrial base were the main objectives of the Planning Commission. 

The Indian Planning Commission's functions as outlined by the Government's 1950 resolution are following:

1. To make an assessment in the material, capital and human resources of India, including technical personnel, and investigate the possibilities of augmenting those are related resources which are found to be deficient in relation to the nation's requirement.
2. To formulate a plan for the most effective and balanced utilisation of country's resources.
3. To define the stages, on the basis of priority, in which the plan should be carried out and propose the allocation of resources for the due completion of each stage.
4. To indicate the factors that tend to retard economic development.
5. To determine the conditions which need to be established for the successful execution of the plan within the incumbent socio-political situation of the country.
6. To determine the nature of the machinery required for securing the successful implementation of each stage of the plan in all its aspects.
7. To appraise from time to time the progress achieved in the execution of each stage of the plan and also recommend the adjustments of policy and measures which are deemed important vis-a-vis a successful implementation of the plan.
8. To make necessary recommendations from time to time regarding those things which are deemed necessary for facilitating the execution of these functions. Such recommendations can be related to the prevailing economic conditions, current policies, measures or development programmes. They can even be given out in response to some specific problems referred to the commission by the central or the state governments.

In 1962, Lal Bahadur Sastri appointed Santhanam to preside over the committee on anti-corruption. Because of its thorough investigative work and recommendations, the Committee earned a reputation as Santhanam's Committee on Anti-Corruption. In his 1976 'Code of Conduct for persons in power, authority or positions of trust in our country', he explicitly included ministers and members of Parliament and state legislatures. There should be no use of position for personal or family advantage, read his code; no actions motivated by considerations of party, religion, caste, or community; no unofficial dealings with businessmen or hospitality or gifts accepted from them or other private persons.

The planning commission was not responsible for implementing decisions. The responsibility rests with the Centre and The State govts. The planning commission was only a staff body with no executive responsibility

The Constitution of India envisages the Finance Commission as the balancing wheel of Fiscal Federalism in India. However, its role in the centre-state fiscal relations has been undermined by the emergence of the planning commission, a non-constitutional and a non-statutory body.

The Planning Commission was set up by a Resolution of the Government of India in March 1950. The prime objectives of the Government were to propel a rapid increase in the living standard of Indians by the productive exploitation of the country’s resources, raising production and securing opportunities for everyone for employment in the service of society.

The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community.

Oversight of the government’s finances involves the scrutiny of the government’s financial proposals and policies.

The Indian Constitution vests this power with the Parliament by providing that (a) taxes cannot be imposed or collected without the authority of law, and (b) expenditure cannot be incurred without the authorisation of the Legislature.

1. The Constitution therefore ensures that “the Indian government is accountable to the Parliament in its financial management”.
2. The Indian Parliament exercises financial oversight over the government budget in twostages: (1) at the time of presentation of the annual budget, and (2) reviewing the government’s budget implementation efforts through the year.

Auxiliary agency provides common housekeeping services to all other agencies. The major departments in the Government of India are those of Health, Defence, Education, Labour, Railways, Transport, Communications, Commerce and Industry.

The composition of the Commission underwent considerable changes since its initiation. With the Prime Minister as the ex officio Chairman, the committee had a nominated Deputy Chairman, with the rank of a full Cabinet Minister. Cabinet Ministers with certain important portfolios acted as ex officio members of the Commission, while the full-time members were experts in various fields like economics, industry, science and general administration.

Ex officio members of the Commission included the Finance Minister, Agriculture Minister, Home Minister, Health Minister, Chemicals and Fertilisers Minister, Information Technology Minister, Law Minister, Human Resource Development Minister and Minister of State for Planning.