Indian Polity & Constitution

Planning Commission, NITI Aayog, NDC and Finance Commission

By Examguru / 28 Sep, 2023 / Download PDF

Planning Commission, NITI Aayog, NDC and Finance Commission

Planning Commission

  • Planning Commission was not mentioned in the Constitution.
  • Planning Commission was an economic advisory body set up by a resolution of the Union Cabinet on 15th March, 1950.
  • Pt. Jawahar Lal Nehru was the first and Narendra Modi is the last chairman of Planning Commission
  • Gulzari Lai Nanda was the Deputy Chairman of the 1st Planning Commission.
  • The Planning Commission consisted of the Chairman, four Ministers as part time members and seven full-time members.
  • Prime Minister had been the Chairman of Planning Commission.

Main functions of the Planning Commission were:

  • To prepare an integrated Five Year Plan for the most effective and balanced utilisation of the country's resources for economic and social development.
  • To act as an advisory body to the Union Government and State Governments.

On 15th August, 2014 the Prime Minister Narendra Modi announced that a new institution would be formed in place of the Planning Commission-NITI Aayog.

NITI Aayog

  • On the 1st January 2015, by resolution the Government of India constituted a 'NITI Aayog' (NITI stands for 'National Institution for Transforming India')
  • The Prime Minister of India is the chairperson and Chief Ministers of all the States and Lt. Governor of Andaman & Nicobar Islands (UT) are the members of NITI Aayog's Governing Council.
  • The Aayog will have five full-time members, two permanent members, four Union Ministers as ex-officio members and three Union Ministers as special invitees.
  • Arvind Pangariva (An Indo-US economist and ex-chief Economist of Asian Development Bank) was the first Vice Chairman of the NITI Aayog.
  • The first meeting of the newly constituted planning body, the NITI Aayog was chaired by the Prime Minister Narendra Modi on 8 Februarv, 2015.

National Development Council (NDC)

  • The National Development Council was formed in 1952, to associate the States in the formulation of the Plans.
  • All members of the Union Cabinet, Chief Ministe of States, the Administrators of the Union Territories and member of the erstwhile Planning Commission (now NITI Aayog) are members and the Prime Minist of India is the Chairman of the NDC.

Functions of the NDC are:

  • Review working of national plan.
  • Recommend measures to meet targets of national plan.

It is an extra constitutional and extra legal body.

National Integration Council

  • National Integration Council was setuup in 1986 to deal with welfare measures for the minorities on an All-India basis.
  • It includes Union Ministers, Chief Ministers of State representatives of National and Regional political parties, labour, women, public figures and media representatives. NDC is a non-constitutional body.

Finance Commission

  • The Constitution provides for the establishment of a Finance Commission (Art. 270, 273, 275 and 280) by the President. The first Finance Commission was constituted in 1951.

Finance Commissions of India

SI.

Constituted

Chairman

Report Implementation Year

1

1951

K. C. Nivogi

1952-1957

2

1956

K. Santhanam

1957-1962

3

1960

A. K. Chanda

1962-1966

4

1964

Dr. P. V. Rajamannar

1966-1969

5

1968

Mahavir Tvagi

1969-1974

6

1972

Brahmanand Reddy

1974-1979

7

1977

J. M. Schelet

1979-1984

8

1982

Y. B. Chavan

1934-1989

9

1987

N. K. P. Salve

1989-1995

10

1992

K. C. Pant

1995-2000

11

1998

A. M. Khusro

2000-2005

12

Nov., 2002

C. Rangarajan

2005-2010

13

Nov., 2007

Dr. Vijay L. Kelkar

2010-2015

14

Jan., 2013

Y.V. Reddy

2015-2020

15

Nov., 2017

N.K. Singh

2020-2025

  • The Finance Commission consists of a Chairman and four other members.
  • According to the qualifications prescribed by the Parliament, the chairman is selected among persons who have had experience in public affairs, while the members are selected among persons who:

- are or have been or are qualified to be appointed judges of the High Court; or

- have special knowledge of the finance and accounts of government; or

- have had wide experience in financial matters and in administration; or

- have special knowledge of economics.

  • The members of the commission hold office for such period as may be specified by the President in his orders and are eligible for reappointment.

The main functions or duties of the Finance Commission are:

  • To recommend to the President the basis for the distribution of the net proceeds of taxes between the centre and states.
  • To recommend the principles which should govern the grants in-aid to be given to states out of the consolida ted Fund of India.
  • To tender advice to the President on any other matter referred to the Commission in the interest of sound finance.
  • To suggest amounts to be paid to the states of Assam, Bihar, Odisha and West Bengal in lieu of the assignment of system of export duty on Jute products.

The commission submits its recommendations to the President which are generally accepted by the Central Government. The recommendations of the Commission are applicable for a period of five years.

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