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Zorluk: OrtaEconomic Planning History, NITI Aayog, and Structural Reforms

With reference to the institutional transition from the Planning Commission to NITI Aayog in Indian economic planning, consider the following statements:

Statement I: NITI Aayog functions primarily as a policy think tank promoting a bottom-up approach to cooperative federalism, unlike the Planning Commission which pursued a top-down planning approach.
Statement II: Unlike the former Planning Commission, NITI Aayog possesses the statutory power to allocate central financial resources directly to state governments.
Statement III: Post-2017, NITI Aayog replaced Five-Year Plans with a long-term economic strategy framework comprising a 15-Year Vision, a 7-Year Strategy, and a 3-Year Action Agenda.

Which of the statements given above are correct?

  1. Only Statement I and Statement IIICevap
  2. B
    Only Statement I and Statement II
  3. C
    Only Statement II and Statement III
  4. D
    Statement I, Statement II, and Statement III

Cevap

Only Statement I and Statement III are correct.
Statement I and Statement III are factually accurate. NITI Aayog acts as an advisory body fostering cooperative federalism without possessing resource allocation mandate, and it restructured Indian economic planning into 15-year, 7-year, and 3-year frameworks following the end of Five-Year Plans in 2017.

Adım Adım Çözüm

1
Evaluate Statement I regarding institutional philosophy.
Statement I is correct because NITI Aayog was established on January 1, 2015, as a policy think tank to facilitate structured, bottom-up cooperative federalism, in contrast to the centralized top-down approach of the Planning Commission.
Institutional design of NITI Aayog emphasizes state participation in strategic policy formulation.
2
Evaluate Statement II regarding financial allocation powers.
Statement II is incorrect because NITI Aayog does not allocate funds to state governments or Union ministries. The power to allocate plan funds was transferred to the Department of Expenditure under the Ministry of Finance.
Financial allocation authority was decoupled from advisory planning functions.
3
Evaluate Statement III regarding post-2017 planning horizons.
Statement III is correct because after the 12th Five-Year Plan concluded in 2017, NITI Aayog introduced a multi-tier planning framework: a 15-Year Vision Document, a 7-Year National Development Strategy, and a 3-Year Action Agenda.
Five-Year Plans were replaced by flexible strategic vision documents aligned with modern economic governance.

Anahtar Kavram

Institutional architecture and functional differences between NITI Aayog and the Planning Commission
Tahmini Süre:1m 15s
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Konular

Economic Planning History, NITI Aayog, and Structural Reforms