Examkin

Question

Difficulty: Very hardEconomic Planning History, NITI Aayog, and Structural Reforms

With reference to the institutional machinery of NITI Aayog and the post-1991 structural reform architecture in India, consider the following statements:

I. The Governing Council of NITI Aayog comprises the Prime Minister, Chief Ministers of all States and Union Territories with Assemblies, and Lieutenant Governors of other Union Territories.
II. NITI Aayog possesses direct constitutional authority to allocate plan revenue and capital expenditure grants to state governments for Centrally Sponsored Schemes (CSS).
III. The Development Monitoring and Evaluation Office (DMEO) functions as an attached office under NITI Aayog to conduct independent evaluations of central government initiatives.

Which of the statements given above are correct?

  1. Statements I and III onlyAnswer
  2. B
    Statements I and II only
  3. C
    Statements II and III only
  4. D
    Statements I, II, and III

Answer

Statements I and III are correct.
The correct answer highlights that NITI Aayog serves primarily as a policy think-tank promoting cooperative federalism through its Governing Council (comprising the Prime Minister, Chief Ministers, and Lieutenant Governors) and monitors program implementation via the Development Monitoring and Evaluation Office (DMEO). Crucially, fund allocation powers formerly held by the Planning Commission were transferred entirely to the Department of Expenditure, Ministry of Finance.

Step-by-Step Solution

1
Evaluate Statement I regarding NITI Aayog Governing Council composition
Statement I is correct
The Governing Council is the premier body of NITI Aayog, chaired by the Prime Minister and comprising Chief Ministers of all States and UTs with legislatures, alongside Lieutenant Governors of other UTs.
2
Evaluate Statement II regarding fund allocation powers
Statement II is incorrect
Unlike the former Planning Commission, NITI Aayog is strictly an advisory think tank and does not have the power to allocate central funds or financial grants to state governments. Fund allocations are handled by the Department of Expenditure under the Ministry of Finance based on Finance Commission recommendations.
3
Evaluate Statement III regarding DMEO
Statement III is correct
The Development Monitoring and Evaluation Office (DMEO) was established in September 2015 as an attached office under NITI Aayog by merging the erstwhile Program Evaluation Organisation and Independent Evaluation Office to monitor program outcomes.

Key Concept

Organizational Structure of NITI Aayog and Division of Financial Powers Post-Planning Commission
Rate this question

Topics

Economic Planning History, NITI Aayog, and Structural Reforms