The Planning Commission was an institution in the Government of India, which formulated India’s Five-Year Plans, among other functions.
Background
Rudimentary economic planning, deriving from the sovereign authority of the state, was first initiated in India in 1938 by Congress President and Indian National Army supreme leader Netaji Subhash Chandra Bose, who had been persuaded by Meghnad Saha to set up a National Planning Committee. M. Visvesvaraya had been elected head of the Planning Committee. Meghnad Saha approached the great engineer and requested him to step down. He argued that planning needed a reciprocity between science and politics. M. Visvesvaraya generously agreed and Jawaharlal Nehru was made head of the National Planning Committee.The so-called “British Raj” also formally established a planning board that functioned from 1944 to 1946. Industrialists and economists independently formulated at least three development plans in 2012. Some scholars have argued that the introduction of planning as an instrument was intended to transcend the ideological divisions between Mahatma Gandhi and Nehru. Other scholars have argued that the Planning Commission, as a central agency in the context of plural Democracy in India, needs to carry out more functions than rudimentary economic planning.
After India achieved Independence, a formal model of planning was adopted, and accordingly the Planning Commission, reporting directly to the Prime Minister of India, was established on 15 March 1950, with Prime Minister Jawaharlal Nehru as the Chairman. Authority for creation of the Planning Commission was not derived from the Constitution of India or statute; it is an arm of the Central Government of India.
Composition of commission
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.
The Commission worked through its various divisions, of which there were two kinds:
General Planning Divisions
Programme Administration Divisions
Functions
To make an assessment of the material, capital and human Resources of the country, including technical personal, and investigate the possibilities of augmenting those are related resources which are found to be deficient in relation to the nation’s requirement.
To formulate a plan for the most effective and balanced utilisation of country’s resources.
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.
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.
To determine the nature of the machinery required for securing the successful implementation of each stage of the plan in all its aspects.
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.
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 his first Independence Day speech in 2014, Prime Minister Narendra Modi announced his intention to dissolve the Planning Commission. It has since been replaced by a new institution named NITI Aayog.
National development council
The National Development Council (NDC) or the Rashtriya Vikas Parishad is the apex body for DECISION MAKING and deliberations on development matters in India, presided over by the Prime Minister. It was set up on 6 August 1952 to strengthen and mobilize the effort and resources of the nation in support of the Plan, to promote common economic policies in all vital spheres, and to ensure the balanced and rapid development of all parts of the country. The Council comprises the Prime Minister, the Union Cabinet Ministers, Chief Ministers of all States or their substitutes, representatives of the Union Territories and the members of the NITI Aayog. It is an extra-constitutional and non-statutory body.
Objectives
To secure cooperation of the states in the execution of the plan.
To strengthen and mobilize the effort and resources of the nation in support of the Plan.
To promote common economic policies in all vital spheres.
To ensure the balanced and rapid development of all parts of the country.
Functions
To prescribe guidelines for the formulation of the National Plan, including the assessment of resources for the Plan.
To consider the National Plan as formulated by the NITI Aayog.
To make an assessment of the resources that are required for implementing the Plan and to suggest measures for augmenting them.
To consider important questions of social and economic policy affecting national development; and to review the working of the Plan from time to time.
To recommend such measures as are necessary for achieving the aims and targets set out in the National Plan.
To recommend measures for achievement of the aims and targets set out in the national Plan.
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The Planning Commission was an Indian governmental planning agency that was established in 1950. It was responsible for formulating India’s Five-Year Plans, which were economic plans that set out the country’s development goals for the next five years. The Planning Commission was abolished in 2014 and its functions were transferred to the National Development Council.
The Planning Commission was composed of a chairman, a deputy chairman, and a number of members. The chairman was appointed by the president of India, and the deputy chairman and members were appointed by the prime minister. The Planning Commission also had a number of advisory bodies, which were composed of experts from various fields.
The functions of the Planning Commission included:
Formulating India’s Five-Year Plans
Reviewing the progress of the Five-Year Plans
Advising the government on economic matters
Coordinating the activities of various government departments
Mobilizing resources for development
The National Development Council was established in 1952. It is a forum for consultation and coordination between the central government and the state governments. The National Development Council is chaired by the prime minister, and its members include the chief ministers of all the states, the finance ministers of all the states, and the Planning Commission.
The functions of the National Development Council include:
Discussing and approving the Five-Year Plans
Reviewing the progress of the Five-Year Plans
Advising the government on economic matters
Coordinating the activities of the central government and the state governments
Mobilizing resources for development
The Planning Commission has been criticized for being a top-down planning agency that was not responsive to the needs of the people. It has also been criticized for being inefficient and for not achieving its objectives. The National Development Council has been criticized for being a toothless body that has not been able to effectively coordinate the activities of the central government and the state governments.
The Planning Commission and the National Development Council are both important institutions in India’s economic planning. However, they have both been criticized for various reasons. The future of these institutions is uncertain, but they are likely to continue to play an important role in India’s economic development.
In recent years, there has been a growing debate about the role of Planning in India. Some argue that planning is no longer necessary, as the country has become more market-oriented. Others argue that planning is still essential, as the country faces a number of challenges, such as POVERTY, inequality, and Environmental Degradation.
The debate about planning is likely to continue for some time. However, it is clear that the Planning Commission and the National Development Council will continue to play an important role in India’s economic development.
What is the Planning Commission?
The Planning Commission was a body of the Government of India that was responsible for formulating India’s Five Year Plans. It was set up in 1950 and abolished in 2014.
What was the National Development Council?
The National Development Council was a body of the Government of India that was responsible for advising the Planning Commission. It was set up in 1952 and abolished in 2014.
What were the functions of the Planning Commission?
The Planning Commission had the following functions:
To formulate the Five Year Plans
To review the progress of the Five Year Plans
To coordinate the activities of the Central and State Governments
To advise the Central Government on economic and social matters
What were the functions of the National Development Council?
The National Development Council had the following functions:
To advise the Planning Commission on the formulation of the Five Year Plans
To review the progress of the Five Year Plans
To coordinate the activities of the Central and State Governments
To advise the Central Government on economic and social matters
What were the criticisms of the Planning Commission?
The Planning Commission was criticized for being too bureaucratic and for being too slow to respond to changes in the economy. It was also criticized for being too centralized and for not giving enough autonomy to the State Governments.
What were the criticisms of the National Development Council?
The National Development Council was criticized for being too advisory and for not having any real power. It was also criticized for being too large and for being too slow to make decisions.
Why was the Planning Commission abolished?
The Planning Commission was abolished in 2014 because it was seen as no longer being necessary. The economy had grown rapidly in recent years and the Central and State Governments were now able to formulate their own economic policies.
Why was the National Development Council abolished?
The National Development Council was abolished in 2014 because it was seen as no longer being necessary. The Planning Commission had been abolished and the National Development Council was no longer needed to advise it.
What replaced the Planning Commission?
The Planning Commission was replaced by the NITI Aayog (National Institution for Transforming India). The NITI Aayog is a think tank that is responsible for providing policy advice to the Central Government.
What replaced the National Development Council?
The National Development Council was replaced by the Inter-State Council. The Inter-State Council is a body of the Government of India that is responsible for coordinating the activities of the Central and State Governments.
The Planning Commission was set up in:
(a) 1947
(b) 1950
(c) 1952
(d) 1956
The Planning Commission was dissolved in:
(a) 2014
(b) 2015
(c) 2016
(d) 2017
The National Development Council was set up in:
(a) 1950
(b) 1952
(c) 1956
(d) 1964
The National Development Council is chaired by:
(a) The Prime Minister
(b) The President
(c) The Vice President
(d) The Finance Minister
The National Development Council is a body of:
(a) The Prime Minister and the Chief Ministers of the States
(b) The Prime Minister, the Chief Ministers of the States, and the Finance Ministers of the States
(c) The Prime Minister, the Chief Ministers of the States, the Finance Ministers of the States, and the Planning Commission
(d) The Prime Minister, the Chief Ministers of the States, the Finance Ministers of the States, and the National Development Council
The National Development Council is responsible for:
(a) Formulating the Five Year Plans
(b) Approving the Five Year Plans
(c) Monitoring the implementation of the Five Year Plans
(d) All of the above
The Planning Commission was dissolved because:
(a) It was no longer needed
(b) It was not effective
(c) It was too powerful
(d) It was not accountable
The National Development Council is still in existence because:
(a) It is needed to formulate the Five Year Plans
(b) It is needed to approve the Five Year Plans
(c) It is needed to monitor the implementation of the Five Year Plans
(d) All of the above
The Planning Commission was a powerful body because:
(a) It had the power to allocate resources
(b) It had the power to approve projects
(c) It had the power to monitor the implementation of projects
(d) All of the above
The National Development Council is not a powerful body because:
(a) It does not have the power to allocate resources
(b) It does not have the power to approve projects
(c) It does not have the power to monitor the implementation of projects
(d) All of the above