Role, Composition and functions of the Planning Commission and the National Development Council | Public Administration Optional for UPSC (Notes) PDF Download

Planning Commission

India's journey of economic planning has witnessed a significant transformation with the transition from the Planning Commission to the National Institution for Transforming India (NITI) Aayog. Established in 1950, the Planning Commission played a pivotal role in formulating and implementing India's Five-Year Plans. However, the dissolution of the Planning Commission in 2014 marked a shift towards a more inclusive and participatory approach to planning.

1. The Planning Commission: Envisioning India's Progress
The Planning Commission, an institution created by the Indian government, aimed to foster rapid development and improve living standards through efficient resource utilization. Under the leadership of Prime Minister Jawaharlal Nehru, the Commission initiated the first Five-Year Plan in 1951, focusing on key sectors and heavy industries. Despite facing challenges like conflicts and economic instabilities, the Commission successfully implemented several plans, shaping India's growth trajectory.

2. Composition of the Planning Commission
The Planning Commission comprised three key positions: Chairman, Deputy Chairman, and members. The Prime Minister assumed the role of the Chairman and presided over the Commission's meetings. The Deputy Chairman, the de facto executive head, played a vital role in drafting and presenting the Five-Year Plans. Additionally, central ministers served as part-time members, while the Finance Minister and Planning Minister held ex-officio positions.

3. Functions of the Planning Commission
The Planning Commission carried out several critical functions to drive economic development in India:

• Assessing the nation's resources, including capital, materials, and human resources, and formulating strategies to enhance their potential.
• Creating comprehensive plans to optimize resource utilization, ensuring a balanced approach to development.
• Dividing the plan into stages and determining the required resources for successful implementation.
• Identifying obstacles to economic growth and proposing necessary policy corrections.
• Evaluating plan implementation progress, suggesting amendments when required.
• Providing interim recommendations to address specific challenges referred by the Central or State Governments.

4. Transition to NITI Aayog: A Paradigm Shift in Planning
The dissolution of the Planning Commission in 2014 marked a significant shift in India's planning framework. The new institution, NITI Aayog, aimed to function as a think tank and a forum for collaborative decision-making. Unlike the Planning Commission, NITI Aayog emphasized increased state participation in planning processes, ensuring a bottom-up approach tailored to regional requirements.

5. Key Differences Between the Planning Commission and NITI Aayog
NITI Aayog introduced several changes in the planning landscape, differentiating it from the Planning Commission:

• Enhanced State Participation: NITI Aayog actively encourages state involvement in decision-making processes, allowing for greater customization and regional focus.
• Resource Allocation: While the Planning Commission centrally allocated resources, NITI Aayog allocates resources to states based on their specific needs and priorities.
• Policy Planning: The Planning Commission primarily held responsibility for policy planning, with limited direct input from states. However, NITI Aayog ensures more comprehensive state engagement by eliminating the indirect involvement through the National Development Council.

Conclusion

The Planning Commission's dissolution and the establishment of NITI Aayog reflect India's commitment to transform its planning mechanisms. By encouraging active state participation and facilitating decentralized decision-making, NITI Aayog aims to foster inclusive growth and address regional disparities effectively. The shift from a top-down approach to a more collaborative and participatory model signals India's commitment to shaping a dynamic and resilient economy.

National Development Council - History, Objectives & Structure

The National Development Council (NDC) plays a vital role in fostering economic development and social welfare planning at the national level in India. Established by the Government of India in August 1952, it serves as a platform for cooperative planning between the Centre and the States. In this article, we will delve into the history, objectives, structure, and functions of the National Development Council.

1. History of NDC
The National Development Council (NDC) was founded on August 6, 1952, and serves as India's apex authority for approving five-year plans. The first five-year plan was adopted without the NDC's approval, but since then, the Council has played a crucial role in shaping the country's development. The NDC is headquartered in New Delhi and is presided over by the Prime Minister of India. The inaugural meeting of the NDC was chaired by Jawaharlal Nehru in November 1952.

The NDC was established with several goals in mind, which include:

• Creating a nation free of exploitation and poverty.
• Achieving equality, good governance, human rights, and gender equality.
• Reducing violence against women and promoting fair governance and human rights.
• Strengthening civil society, community-based organizations (CBOs), and urban planning (UP) capacities in local-level planning and management.
• Providing standardized and high-quality services for organizational sustainability.
• Ensuring state collaboration in carrying out the Plan.
• Mobilizing the nation's efforts and resources in support of the Plan.
• Promoting unified economic policies in all domains of government.
• Ensuring balanced and rapid growth across the entire country.
• Providing advocacy and legal assistance to underprivileged and vulnerable women.

2. Functions/Mandate of NDC
The National Development Council (NDC) is empowered to address a wide range of national development issues. According to the Government of India resolution, the NDC's functions include:

• Defining criteria for the formation of the National Plan, including the appraisal of Plan resources.
• Considering the national plan formulated by the Planning Commission.
• Addressing major social and economic policy issues affecting the country's growth.
• Conducting periodic reviews of the Plan's operation and recommending necessary steps to achieve the plan's goals and targets.
• Discussing significant issues of social and economic policy that influence national development.
• Enhancing the efficiency of administrative services and ensuring the development of less developed regions and sectors.

3. Powers and Authority of NDC
While the National Development Council (NDC) is a non-statutory advisory body, its recommendations hold significant weight. The NDC is considered the highest policy-making body in the country, and its decisions are routinely followed and obeyed by the Central and State governments. The NDC is mandated to convene at least twice a year, although it has met more frequently in the past. The agenda for NDC meetings typically includes the approach paper to the Five Year Plan, the draft Five Year Plan, and the final Five Year Plan. Additional issues are included if raised by the central or state governments.

4. Structure and Appointment of NDC
The National Development Council comprises the following members:

• The Prime Minister of India (who serves as its Chairman/Head).
• The Union Cabinet.
• Chief Ministers of all states.
• Chief Ministers and administrators of Union Territories.
• Members of the NITI Aayog (formerly known as the Planning Commission).

5. The New Role of NDC
In 2015, the Planning Commission was replaced by NITI Aayog, and the NDC was given a new role as the Governing Council of the NITI Aayog. This change has transformed the NDC into a platform for cooperative federalism in India. The NDC now serves as a forum for the Prime Minister, Chief Ministers of all states and Union Territories, and other senior officials to discuss and coordinate national development priorities.
The key functions of the NDC include:

• Identifying key policy priorities and goals.
• Reviewing and monitoring the progress of ongoing schemes and programs.
• Providing guidance and recommendations on policy and development-related issues.
• Ensuring effective implementation of government schemes and initiatives.

The new role of the NDC aims to strengthen the federal structure of the country by promoting collaboration between the central and state governments. It also fosters a more inclusive and participatory approach to national development.

5. National Development Council and Planning Commission
The National Development Council (NDC) and the Planning Commission have played significant roles in India's development planning. Established in 1952, the NDC serves as the apex body for decision-making and policy guidance on development issues. It sets goals and targets for the country's socio-economic development and approves Five-Year Plans, annual plans, and specific development projects.

The Planning Commission, established in 1950, formulated and oversaw India's Five-Year Plans and coordinated development policies between states. However, in 2015, the Planning Commission was replaced by NITI Aayog, which marked a shift in the planning process.

6. Departments under the National Development Council
The National Development Council is composed of representatives from the central and state governments and encompasses various departments responsible for decision-making and deliberations on development matters. Some of the departments under the purview of the National Development Council are:

• Department of Overall Planning
• Department of Economic Development
• Department of Social Development
• Department of Industrial Development
• Department of Human Resources Development
• Department of National Spatial Planning and Development
• Department of Supervision and Evaluation
• Department of Regulatory Reform
• Civil Service Ethics Office
• Information Management Office
• Liaison Center for Legislature and Media Affairs

These departments work together to achieve the objectives set forth by the NDC and contribute to the overall development of the country.

Conclusion

The National Development Council (NDC) holds a significant position in India's federal democracy. As the highest-level body for deliberations and decision-making on development-related topics, the NDC plays a crucial role in shaping the country's future. The participation of the Prime Minister and all State Chief Ministers ensures a national perspective in the planning process. The cooperation of states fosters efficient program implementation, enabling the achievement of goals set by both the Central and State Governments. Despite its consultative nature, the NDC's recommendations have a considerable impact on policy formulation and development planning, making it an instrumental institution in India's development journey.