Planning commission to niti aayog

Planning commission to niti aayog

1. Planning Commission To NITI Aayog V AIBHAV

2. Introduction At the time of independence of India, there was a large proportion of impoverished people in the country. Poverty alleviation and improvement of life standards of people were the major considerations of the government. Indian economy needed a direction, which was crippled by foreign subjugation. India was still a geographic expression and a nation in making. Other than the spirit of the freedom struggle, factors required for binding the people were few. So the then politicians and think tanks opted for a planned economy and a centralized planning body to formulate a plan for socio-economic development. Thus, planning commission came into existence in March 1950 through a cabinet resolution which became a permanent body of experts.

3. About Planning Commission The Planning Commission of India was set up by a Resolution of the Government of India in March 1950. Objectives of the government while starting PC were the following: Promote a rapid rise in the standard of living of the people by efficient exploitation of the resources of the country. Increase production. Offer opportunities to all for employment in the service of the community .

4. Planning Commission of India (PC ) Prime minister was the ex officio chairman of the planning commission assisted by a deputy chairman. It included 6 union cabinet ministers as its ex officio members. There was also a member secretary. The planning commission was an autonomous body, which worked closely with union and state cabinets and had full knowledge of their policies. Institutionally it was a part of the cabinet organization and the ‘demands for grants’ for the PC was included in the budget for the cabinet secretariat .

5. Functions and Responsibilities of the Planning Commission Make assessment of all resources of the country Augment deficient resources Formulate plans [Five Year Plans (FYP)] for the most effective and balanced utilization of resources and determining priorities. Determine the stages of plan implementation Determine the nature of machinery required. Indicate the factors which tend to retard economic developments. Monitor and evaluate .

6. Evolution of Indian Planning The first Five-year Plan was launched in 1951 and two subsequent five-year plans were formulated till 1965, when there was a break because of the Indo-Pakistan Conflict. Two successive years of drought, devaluation of the currency, a general rise in prices and erosion of resources disrupted the planning process and after three Annual Plans between 1966 and 1969, the fourth Five-year plan was started in 1969. The Eighth Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as Annual Plans. The Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies .

7. Planning Commission: Positives and Achievements PC laid emphasis on infrastructure developments and capacity building. As a result, huge investments were made in education, energy, industry, railways and irrigation. India became self-sufficient in agriculture and made great progress in capital sector goods and consumer sector goods. PC introduced many remarkable concepts like nationalisation , green revolution etc and transformed itself to align with new concepts like liberalisation , privatisation and inclusion. Planning commission made great emphasis on social justice, governance, employment generation, poverty alleviation, health and skill development. The transformation of India from a poor to an emerging economic power is credited to the orderly and phased manner in which planning was implemented .

8. Planning Commission: Negatives and Problems No structural mechanism for regular engagement with states. Ineffective forum for the resolution of centre -state and inter-ministerial issues. Inadequate capacity expertise and domain knowledge; weak networks with think tanks and lack of access to expertise outside government. Failed to implement land reforms. It was a toothless body, was not able to make union/states/UTs answerable for not achieving the targets. Designed plans with ‘one size fit for all’ approach. Hence, many plans failed to show tangible results. Weak implementation, monitoring and evaluation .

9. Why does India need a change from PC ? The contemporary world is governed by constitutional ethos like federalism rather than centralization. India's population has almost tripled to 121 Cr, and many of the Indian states are as big as European nations. Indian economy has expanded from a GDP of 10,000 crore to 2.87 lakh crores USD – ie . from a poor nation to one of the largest economies. India ranks 3rd in GDP at purchasing power parity, has surpassed Japan and is now standing just below the US and China. The new economy needs institutions which can take India forward in a global competitive environment. Co-operative federalism and fiscal federalism will help to meet the diverse needs of different states/UTs in which planning commission had failed drastically. Plans have to be formulated by fulfilling the aspirations of states by tailoring the plans to suit their needs and requirements .

10. The share of agriculture in GDP has been drastically decreasing while the share of the service sector to GDP is increasing in India. From 1991, as our economy is liberalised , private firms have been playing a major role in the economy. Today we are living in a globalised world connected by modern transport, media, communications and networked international institutions and markets. With the increasing levels of development, the aspirations of people have soared from survival to safety and surplus. So governance systems need to be transformed to keep up with the same. Change in the economic scenario where the government is supposed to be an enabler rather than a player or provider of first and last.

11. National Institution for Transforming India Government of India has replaced the old  planning commission  started in 1950 with a new institution called NITI Aayog on 1 January 2015. It works under the chairmanship of Prime Minister. NITI Aayog (National Institution for Transforming India) will seek to provide a critical directional and strategic input into the development process. It focuses on co-operative federalism .

12. What’s new with NITI Aayog ? The centre -to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states. NITI Aayog = more a “think tank” than a finance distributing agency. NITI Aayog will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of the policy. With NITI Aayog , there will be multi-directional flow of policy (from Center to States, from States to Center, between ministries etc.) Better inter-ministry coordination. The NITI Aayog will develop mechanisms to formulate credible plans to the village level and aggregate these progressively at higher levels of government. The NITI Aayog will create  a knowledge, innovation and entrepreneurial support system  through a collaborative community of national and international experts .

13. Objectives of NITI Aayog The active participation of States in the light of national objectives and to provide a framework ‘national agenda’. To promote cooperative federalism through well-ordered support initiatives and mechanisms with the States on an uninterrupted basis. To construct methods to formulate a reliable strategy at the village level and aggregate these gradually at higher levels of government. An economic policy that incorporates national security interests. To pay special consideration to the sections of the society that may be at risk of not profiting satisfactorily from economic progress. To propose strategic and long-term policy and programme frameworks and initiatives, and review their progress and their effectiveness. To grant advice and encourage partnerships between important stakeholders and national-international Think Tanks, as well as educational and policy research institutions .

14. To generate knowledge, innovation, and entrepreneurial support system through a shared community of national and international experts, etc. To provide a platform for resolution of inter-sectoral and inter-departmental issues to speed up the accomplishment of the progressive agenda. To preserve a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their distribution to participants. To effectively screen and assess the implementation of programmes and initiatives, including the identification of the needed resources to strengthen the likelihood of success. To pay attention to technology improvement and capacity building for the discharge of programs and initiatives. To undertake other necessary activities to the implementation of the national development agenda, and the objectives .

15. 7 pillars of effective governance envisaged by NITI Aayog Pro-people : it fulfils the aspirations of society as well as individuals Pro-activity : in anticipation of and response to citizen needs Participation : involvement of the citizenry Empowering : Empowering, especially women in all aspects Inclusion of all : inclusion of all people irrespective of caste, creed, and gender Equality : Providing equal opportunity to all especially for youth Transparency : Making the government visible and responsive

16. NITI Aayog Composition Prime Minister  of India is the Chairperson Governing Council  consists of the  Chief Ministers  of all the States and Lt. Governors of Union Territories in India. Regional Councils  will be created to address particular issues and possibilities affecting more than one state. These will be formed for a fixed term. It will be summoned by the Prime Minister. It will consist of the Chief Ministers of States and Lt. Governors of Union Territories. These will be chaired by the Chairperson of the NITI Aayog or his nominee. Special invitees:  Eminent experts, specialists with relevant domain knowledge, which will be nominated by the Prime Minister. The full-time organizational framework will include, in addition to the Prime Minister as the Chairperson: Vice-Chairperson (appointed by the Prime Minister) Members: Full-time Part-time members: Maximum of 2 members from foremost universities, leading research organizations, and other innovative organizations in an ex-officio capacity. Part-time members will be on a rotational basis. Ex Officio members: Maximum of 4 members of the Council of Ministers which is to be nominated by the Prime Minister. Chief Executive Officer: CEO will be appointed by the Prime Minister for a fixed tenure. He will be in the rank of Secretary to the Government of India .

17. NITI Aayog specialized Wings Research Wing – that will develop in-house sectoral expertise as a dedicated think tank of top domain experts, specialists and scholars. Consultancy Wing – that will provide a marketplace of whetted panels of expertise and funding for Central and State Governments to tap into; matching their requirements with solution providers, public and private, national and international. By playing matchmaker instead of providing the entire service itself, NITI Aayog will be able to focus its resources on priority matters, providing guidance and an overall quality check to the rest. Team India Wing  – comprising representatives from every State and Ministry, will serve as a permanent platform for national collaboration .

18. Niti Aayog – Achievements Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme in India – It is a collaborative research project between Niti Aayog and the United Nations’  Food and Agriculture Organization (FAO) . It aims to monitor, analyse and reform food and agricultural policies. The first phase of the MAFAP programme ran between 23rd September and 31 December 2019. National Agriculture Price Policy and National Food Security Policy for selected agricultural product marketing committees and districts respectively were reported. The second phase of the MAFAP programme is scheduled between 1st January 2020 and 31st December 2021. The Niti Aayog governing council promoted  Zero Budget Natural Farming . Additionally, natural farming is being promoted as ‘ Bhartiya Prakritik Krishi Paddhati ’ programme under  Paramparagat Krishi Vikas Yojana (PKVY) . Village Storage Scheme has been conceptualised . Similarly,  Union Budget 2021  has proposed  Dhaanya Lakshmi Village Storage Scheme, yet to be implemented.

19. Niti Aayog : Criticism Like planning commission, it’s also a non-constitutional body which is not responsible to parliament . Dismantled planning commission without consulting the states . UTs are represented by Lieutenant Governors, not by chief ministers. This is against the principles of federalism . Fund allocation to welfare schemes may get affected. For example, there is a 20 % reduction in gender budgeting .

20. Conclusion NITI Aayog will function in close cooperation, consultation and coordination with the Ministries of the Central Government and State governments. While it will make recommendations to the Central and State Governments, the responsibility for taking and implementing decisions will rest with them. NITI Aayog will seek to facilitate and empower the critical requirement of good governance – which is people-centric, participative, collaborative, transparent and policy-driven. It will provide critical directional and strategic input to the development process, focussing on deliverables and outcomes. This, along with being as incubator and disseminator of fresh thought and ideas for development, will be the core mission of NITI Aayog .