The Planning Commission was established by a resolution issued by the Indian government in March 1950. It was established to assist the government in achieving its stated objectives of supporting a rapid improvement in people’s quality of life via effective exploitation of the country’s resources, increased productivity, and opportunities for everyone to participate in community service. The Planning Commission was charged with evaluating all of the country’s resources, replenishing those that were insufficient, making plans for the most efficient and balanced use of resources, and determining priorities. The first five-year plan for the country was enacted in 1951. The NITI Aayog was established by the Indian government to replace the Planning Commission, which was established in 1950. This action was done in order to better meet the needs and aspirations of the people, with an emphasis on a “Bottom-Up” approach to visualise the aim of Maximum Governance, Minimum Government, in the spirit of “Cooperative Federalism.” NITI Aayog, the government of India’s premier policy think tank, offers guidance and policy recommendations. In addition to providing necessary technical support to the Centre, States, and Union Territories, NITI Aayog develops strategic and long-term policies and programmes for the Indian government. This move was made in order to better meet the needs and goals of the people. In that it acts as the Government of India’s major platform for bringing the States together in the national interest, supporting cooperative federalism, NITI Aayog is an important evolutionary advance.
What was the Planning Commission ?
The Planning Commission was founded in 1950 by the Indian government to manage the country’s economic and social growth, primarily via the preparation of five-year plans. The commission’s initial objective was to improve the standard of life of ordinary Indians by more effectively utilising the country’s material and human resources, increasing productivity, and providing opportunities for all. It is now in charge of reviewing the country’s resources on a regular basis, establishing five-year plans and strategies for executing them, monitoring the plans’ implementation, and suggesting 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 many full-time members as well as a deputy chairman. A senior officer leads each of the commission’s several departments, which relate to various areas of the national economy and society. Education, health, infrastructure, science, financial resources, industry, social welfare, rural development, and water resources are some of the divisions.
What is NITI Aayog ?
The National Institution for Transforming India, or NITI Aayog, is an Indian government policy think tank that gives feedback on the government’s many programmes and policies. The NITI Aayog provides appropriate advice to the federal government, state governments, and union territories.
The Honourable Prime Minister of India and the Chief Ministers of all states and Union territory, as well as the legislatures and Lt. Governors of other Union Territories, chair this institution, which was established in 2015 by a resolution of the Union cabinet.
The NITI Aayog is a key player in developing plans for the Indian government’s long-term policies and programmes. The planning commission, which was established in 1950, was succeeded by this organisation. The Indian government wanted to provide a single platform for all states to come together and act in the national interest while also better addressing the needs of the people by taking this move. NITI Aayog is a ground-breaking organisation that promotes cooperative federalism.
Difference Between NITI Aayog and Planning Commission
NITI Aayog | Planning Commission |
The NITI Aayog does not have the ability or mission to impose policies on states. The National Institution for Transforming India (NITI Aayog) is a think tank and advisory body. | The Planning Commission had the ability to impose policies on governments as well as approve projects. |
The NITI Aayog has not been given the power to distribute cash. The Finance Ministry is in charge. | The Planning Commission had the ability to provide financing for a number of national and state-level programmes and projects to state governments and various central government departments. |
The state governments are more involved in the NITI Aayog. | State governments had nothing to do with the process other than attend meetings. The only body in which the state government had a say was the National Development Council. |
Part-time members of the NITI Aayog are appointed according to the needs. | The charter of the Planning Commission did not allow for the nomination of part-time members. |
The NITI Aayog Governing Council is made up of Lieutenant Governors of Union Territories and State Chief Ministers. | The National Development Council was made up of Lieutenant Governors and State Chief Ministers. The National Development Commission demanded a report from the Planning Commission. |
The CEO of NITI Aayog is appointed by the Prime Minister. Chief Executive Officer is the title given to the person in charge of a company. | The Planning Commission’s secretaries were appointed in accordance with regular procedure. |
The NITI Aayog board of directors may have fewer full-time members than the Planning Commission. | The former Planning Commission had eight full-time members. |
Within the NITI Aayog organisation structure, new positions such as CEO and Vice-Chairperson have been created. The CEO’s role is similar to that of a secretary. Four Cabinet members would serve as ex-officio members. The NITI Aayog is made up of two part-time members and five full-time members. | The Planning Commission’s organisational structure consisted of full-time members, a member secretary, and a Deputy Chairperson. |
The ultimate policy would bear fruit at NITI Aayog following adequate consultations with state governments throughout the policy formation stage. It follows a bottom-up approach. | The Planning Commission developed policies first, and subsequently, state governments were consulted on funding allocations for programs and projects. It follows a top-down approach. |
Conclusion
Despite the many changes between the NITI Aayog and the former Planning Commission, their goals and objectives were identical. Both organisations worked toward national development and developed strategies for India’s growth and development. As a result, these organisations must be given additional authority to establish economic growth models that meet the country’s socio economic demands.