By Chandramani

PDM 0308

NITI AYOG (2015) VS PLANNING COMMISSION (1950)

The Planning commission was set up on 15 March 1950, Prime Minister Jawaharlal Nehru as a chairman.
It is not created as a statutory body but as a wing of Central govt. of India. There were many five year
plans, like first five year plan in 1951 having a focus on Agriculture sector in India was launched, like wise
up to 9th five year plan has been launched by planning commission with more emphasis on Public sector.
In 2014 new government came into the picture and replaced the planning commission by National
Institute for Transforming India (NITI) Ayog with broad or holistic approach of making plan and strategy
by involving all the main stakeholders. As compare to NITI Ayog, Planning Commission was centre - to -
state one way flow of policy which is a kind of imposing the policy on the state government.

Comparison between NITI Aayog and Planning Commission

Planning Commission NITI Ayog

It Had deputy chairperson, a member secretary, It has a new posts of CEO of secretary rank, and Vice-
and full-time members. Secretaries or member Chairperson. Will also have five full-time members and
secretaries appointed by the usual process. two part-time members. Four cabinet ministers will
serve as ex-officio members. CEO is appointed directly
by Prime Minister.
It goes for top-down planning for government It formulate national development strategy in a
with public sector resources. market economy integrated with the globalized world.
It was a central government institution and no It provides a partnership with state governments to
representation of state government. There was no promote co-operative federalism. It provides a
structural mechanism for interaction with states. platform for structured and regular interaction with
states.
The role of Finance Commission was greatly Dont have any role in fund allocation.
reduced with the formation of Planning Finance ministry to decide the share of taxes to states,
Commission. Allocation of funds were decided by fund allocation to CSS and Union assistance to the
the Planning Commission. state plan.
The commission reported to National Governing Council has State Chief Ministers and
Development Council that had State Chief Lieutenant Governors.
Ministers and Lieutenant governors.
(Source: https://www.studydhaba.com/niti-aayog-notes-pdf-download/)

Functions of NITI Ayog:

NITI Ayog main functions are to design strategic and long term policy and program frameworks and
initiatives, and monitor their progress and their efficacy. The lessons learnt through monitoring and

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 By Chandramani

PDM 0308
feedback will be used for making innovative improvements, including necessary mid-course corrections.
To provide advice and encourage partnerships between key stakeholders and national and international
like-minded Think tanks, as well as educational and policy research institutions. To create a knowledge,
innovation and entrepreneurial support system through a collaborative community of national and
international experts, practitioners and other partners. To offer a platform for resolution of inter-sectoral
and inter- departmental issues in order to accelerate the implementation of the development agenda. To
maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best
practices in sustainable and equitable development as well as help their dissemination to stake-holders.
To actively monitor and evaluate the implementation of program and initiatives, including the
identification of the needed resources so as to strengthen the probability of success and scope of delivery.

Composition of NITI Ayog

Chairperson: Prime Minister of India

Governing Council: Comprising the Chief Ministers of all States and Lt. Governors of Union
Territories.
Regional Councils: Will be formed to address specific issues and contingencies impacting more
than one state or region.

It will comprise of, in addition to the Prime Minister as the Chairperson:

Vice-Chairperson: To be appointed by the Prime Minister.

Members: full-time: Specialists with international exposure.
Part-time Members: Maximum of 2, from leading universities, research organizations and other
relevant institutions in an ex-officio capacity. Part-time members will be on a rotational basis.
Ex-Officio Members: Maximum of 4 members of the Union Council of Ministers to be nominated by
the Prime Minister.
Chief Executive Officer: To be appointed by the Prime Minister for a fixed tenure, in the rank of
Secretary to the Government of India.
Secretariat: As deemed necessary.

References:

https://www.studydhaba.com/niti-aayog-notes-pdf-download/

http://planningcommission.gov.in/press-release.pdf

http://niti.gov.in/content/functions

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