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

With reference to the institutional framework and structural differences between the Planning Commission of India and NITI Aayog, consider the following statements:

1. The Planning Commission possessed the power to allocate central funds to state ministries and state governments, whereas NITI Aayog is an advisory think tank with no powers to allocate funds.
2. The Governing Council of NITI Aayog includes the Chief Ministers of all States and Lieutenant Governors of Union Territories to promote cooperative federalism.
3. NITI Aayog relies primarily on a top-down planning approach, mandating uniform state-level development plans from the central executive.

Which of the statements given above is/are correct?

  1. 1 and 2 onlyCevap
  2. B
    2 and 3 only
  3. C
    1 and 3 only
  4. D
    1, 2 and 3

Cevap

The correct option is the one stating that statements 1 and 2 only are correct.
The combination declaring statements 1 and 2 as correct is accurate because NITI Aayog was established on January 1, 2015, as a policy think tank without financial allocation powers (which were transferred to the Ministry of Finance). Furthermore, its Governing Council incorporates Chief Ministers and Lt. Governors to drive cooperative federalism. Statement 3 is incorrect because NITI Aayog functions on a bottom-up approach rather than a top-down model.

Adım Adım Çözüm

1
Evaluate Statement 1 regarding fund allocation powers.
Statement 1 is correct. The Planning Commission allocated central funds to states under plan expenditure, whereas NITI Aayog has no fund allocation powers (which were transferred to the Finance Ministry).
NITI Aayog acts purely as a policy think tank, separating finance disbursal from planning strategy.
2
Evaluate Statement 2 regarding the Governing Council composition.
Statement 2 is correct. The Governing Council comprises the Prime Minister, Chief Ministers of all States, and Lt. Governors of UTs to institutionalize cooperative federalism.
This structure ensures direct state participation in national policy formulation.
3
Evaluate Statement 3 regarding the planning methodology.
Statement 3 is incorrect. NITI Aayog operates on a bottom-up approach (village/district level up to central level), unlike the top-down approach of the erstwhile Planning Commission.
NITI Aayog emphasizes local-level planning tailored to specific state needs rather than uniform central mandates.

Anahtar Kavram

Structural Differences between Planning Commission and NITI Aayog
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