Planning Commission and NITI Aayog

The NITI Aayog, founded in 2015, is one of India’s newest institutions. It has been tasked with reimagining the development agenda by dismantling old-school central planning. As the Indian economy became more integrated with the global economy, tensions between central planning and increased private capital flows arose. The NITI Aayog was tasked with fostering cooperative federalism, developing a national consensus on developmental goals, redefining the reform agenda, serving as a platform for resolving cross-sector issues between the Center and State Governments, capacity building, and serving as a Knowledge and Innovation hub. It was a massive task for a fledgling organisation.

The Planning Commission, which foreshadowed the NITI Aayog, was established in March 1950 by a Government of India resolution signed by Prime Minister Indira Gandhi. The original mandate was to establish heavy industries through public investment in order to achieve rapid industrialization. The Planning Commission was tasked with assessing and allocating plan resources, developing plans and programmes for area development, determining implementation methodology, identifying resource constraints, and evaluating and adjusting implementation.

Planning Commission

The Planning Commission is a government agency in India that was established in 1950 to oversee the country’s economic and social development, primarily through the development of five-year plans. The original mandate of the commission was to raise the living standards of ordinary Indians by efficiently utilising the country’s material and human resources, increasing production, and creating employment opportunities for all. It is now in charge of assessing the country’s resources on a regular basis, developing five-year plans and strategies for implementing them, monitoring plan implementation, and recommending policy changes as needed. In 1951, the country’s first five-year plan was implemented.

The commission is led by India’s prime minister and consists of a deputy chairman and several full-time members. Each of the commission’s numerous divisions, which correspond to sectors of the national economy and society, is led by a senior officer. Education, health, infrastructure, science, financial resources, industry, social welfare, rural development, and water resources are among the divisions.

NITI Aayog

The Prime Minister appoints the NITI Aayog’s CEO and Vice-Chairperson. It also has some full-time and part-time members, as well as four Union Ministers who serve as ex-officio members. It also has a governing council made up of all state chief ministers and lieutenant governors of union territories.

The council works to promote cooperative federalism in order to provide a national agenda to the Center and individual states. There are also regional councils, and the Prime Minister invites special invitees who are experts and specialists in various fields.

It advises governments at the Center and elsewhere on strategic policy matters because it serves as a government think tank or as a directional and policy dynamo.

NITI Aayog differ from the Planning commission in Various Ways

Organization: 

The Planning Commission is made up of a deputy chairperson, a member secretary, and full-time members. To nominate secretaries or member secretaries, the regular procedure is followed. At NITI Aayog, new CEO and Vice-Chairperson positions have been created. There will be five full-time employees and two part-time employees. The CEO is appointed directly by the Prime Minister. The CEO’s position is equivalent to that of a Secretary. The NITI Aayog is made up of two part-time members and five full-time members.

Planning:

The Planning Commission prefers top-down government planning with public sector resources. The NITI Aayog develops national development strategies in a market economy that is linked to the globalised world. Recognizing states’ growing autonomy and responsibility, the NITI Aayog recognises and allows for greater participation by states and other stakeholders (civil society). Furthermore, one of the NITI Aayog’s key pillars is transparency and e-governance, which contrasts sharply with the old Planning Commission’s planning style.

Finance and state’s Role:

With the establishment of the Planning Commission, the role of the Finance Commission was significantly reduced. Allocation of funds was the responsibility of the Planning Commission. The NITI Aayog is not in charge of allocating funds. The Finance Ministry will determine the tax portion that states will receive, as well as the distribution of funds and Union support. The Planning Commission was authorised to provide funding to state governments and several central government ministries for a wide range of national and state-level programmes and projects.

Reporting and constitution:

The Planning Commission received reports from the National Development Council, which included State Chief Ministers and Lieutenant Governors. The NITI Aayog Governing Council is made up of State Chief Ministers and Lieutenant Governors. The Planning Commission, which is no longer in operation, was an Executive Body. NITI Aayog is also an Executive Body because it is not named in the Indian Constitution and was not established by an Act of Parliament. However, if necessary, it can be converted into a Statutory Body by passing a statute in Parliament; UIDAI is one example.

Conclusion

The NITI Aayog, founded in 2015, is one of India’s newest institutions. The Planning Commission, which foreshadowed the NITI Aayog, was established in March 1950 by a Government of India resolution signed by Prime Minister Indira Gandhi. The Planning Commission is a government agency in India that was established in 1950 to oversee the country’s economic and social development, primarily through the development of five-year plans. The original mandate of the commission was to raise the living standards of ordinary Indians by efficiently utilising the country’s material and human resources, increasing production, and creating employment opportunities for all. Each of the commission’s numerous divisions, which correspond to sectors of the national economy and society, is led by a senior officer.