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The Planning Commission was replaced by Niti Aayog by the Union Government after the key announcement Prime Minister Narendra Modi made on Independence Day which came into action on 1st January 2015. The Planning Commission was established on 15th March 1950 which was set up with the intention of an advisory institution whose main motive was to make 5-year plans for the country in accordance with the USSR. One of the main functions is to find an estimate of the capital, physical and human resources of India.
NITI Aayog
Niti Aayog was set up on 1st January 2015 after the announcement made by Narendra Modi the Prime Minister of India, the motive behind setting up NITI Aayog was to have a body that can provide proper and critical strategies and directions in which the development process can take place. It was deemed to be an advisory institution that can give advice to the state and the central government on policy matters. The Chairperson of the committee is the Prime Minister, Vice-Chairperson is appointed by the Prime Minister, Governing Council consists of the chief ministers of the states and Lt. Governors of the Union Territories, Regional Council is set up to address regional which comprises of all the chief ministers and Lt. Governors and the committee is chaired by the Prime Minister or his nominee.
NITI Aayog v/s Planning Commission
NITI Aayog | Planning Commission |
Niti aayog is basically a body that advises the government, but it cannot mandate or impose policies. In short, it is an advisory institution. | Whereas, it had the power to directly impose policy on the Governments or the states. Hence it is not just an advisory institution. |
Niti Aayog cannot allocate funds. These powers still remain with the Finance Ministry. | Whereas the planning commission had the power in its hands and they were able to allocate funds to the ministries of the state and the central government. |
State Government play a proactive role when it comes to Niti Aayog. | When it comes to Planning Commission the State governments don’t have much to do until and unless it is for the National Development Council. |
Many times some people were appointed in Niti aayog as part-time members | There were no provisions in the Planning Commission for appointing members who will work part-time. |
Prime Minister appoints the CEO of Niti Aayog. Secretaries are referred to as CEO | The secretaries of the Planning Committee were appointed by the normal process. |
The Niti Aayog is not mentioned in the Indian Constitution hence it is an Executive body and the establishment did not take place by the Act of Parliament. But whatsoever it can be turned into a Statutory Body simply by passing a law. | The Planning Commission was an Executive Body. |
These were a few differences between Niti aayog and the planning commission, Niti Aayog is formed in such a way that it acts like a forum or think tank. It will cover all the states and territories and its body will have to report to the Prime Minister whereas the planning commission used to report to the National Development Cell. The states have more control over the Niti aayog as compared to the Planning Commission.
Conclusion
We can learn about the Planning Commission which was formed in 1950 and had various powers such as allocating funds directly and forming new policies directly, whereas when we talk about Niti Aayog it is completely different from the Planning Commission. Niti Aayog does not have the power to control the funds directly; it is controlled by the Finance Ministry, and it is just an advisory institution and not like the Planning Commission.
