Functions of NITI Ayog

The functions of the erstwhile Planning Commission included the following:

1. To make an assessment of material, capital and human resources of the country, and investigate the possibilities of augmenting them.
2. To formulate a plan for the most effective and balanced utilisation of the country’s resources.
3. To determine priorities and to define the stages in which the plan should be carried out.
4. To indicate the factors that retard economic development.
5. To determine the nature of the machinery required for successful implementation of the plan in each stage.
6. To appraise, from time to time, the progress achieved in execution of the plan and to recommend necessary adjustments.
7. To make appropriate recommendations for facilitating the discharge of its duties, or on a matter referred to it for advice by Central or state governments.

  The Allocation of Business Rules had assigned the following matters (in addition to the above) to the erstwhile Planning Commission:

1. Public Co-operation in National Development
2. Specific programmes for area development notified from time to time
3. Perspective Planning
4. Institute of Applied Manpower Research
5. Unique Identification Authority of India (UIDAI)
6. All matters relating to National Rainfed Area Authority (NRAA)

Earlier, the National Informatics Centre was also under the erstwhile Planning Commission. Later, it was brought under the Ministry of Information Technology.

     It should be noted that the erstwhile Planning Commission was only a staff agency—an advisory body and had no executive responsibility. It was not responsible for taking and implementing decisions. This responsibility rested with the Central and State Governments.

Composition
The following points can be noted in context of the composition (membership) of the erstwhile Planning Commission:

1. The Prime Minister of India was the chairman of the commission. He presided over the meetings of the commission.
2. The commission had a deputy chairman. He was the de facto executive head (i.e., full-time functional head) of the commission. He was responsible for the formulation and submission of the draft of Five-Year Plan to the Central cabinet. He was appointed by the Central cabinet for a fixed tenure and enjoyed the rank of a Cabinet Minister. Though he wasnot a member of cabinet, he was invited to attend all its meetings (without a right to vote).
3. Some Central Ministers were appointed as part-time members of the commission. In any case, the finance minister and planning minister were the ex-officio (by virtue of) members of the commission.
4. The commission had four to seven full-time expert members. They enjoyed the rank of a minister of state.
5. The commission had a member-secretary. He was usually a senior member of IAS.

   The state governments were not represented in the commission in any way. Thus, the erstwhile Planning Commission was wholly a Centre-constituted body.

Internal Organisation
The erstwhile Planning Commission had the following three organs:

1. Technical Divisions
2. Housekeeping Branches
3. Programme Advisors

Technical Divisions
The technical divisions were the major functional units of the erstwhile Planning Commission. They were mainly concerned with plan formulation, plan monitoring and plan evaluation. These fell under two broad categories, that is, general divisions (concerned with aspects of the entire economy) and subject divisions (concerned with specified fields of development).

Housekeeping Branches
The erstwhile Planning Commission had the following housekeeping branches:

1. General administration branch.
2. Establishment branch.
3. Vigilance branch.
4. Accounts branch.
5. Personal training branch.

Programme Advisors
The post of programme advisors were created in the erstwhile Planning Commission in 1952 to act as a link between the erstwhile Planning Commission and the states of Indian Union in the field of planning.

Personnel
The internal organisation of the erstwhile Planning Commission had dual hierarchy—administrative and technical. The administrative hierarchy was headed by the Secretary of the erstwhile Planning Commission who was assisted by Joint Secretaries, Deputy Secretaries, Under Secretaries and other administrative and clerical staff. These functionaries were drawn from the Indian Administrative Service, Indian Revenue Service, Central Secretariat Service, Indian Audit and Accounts Service and the other non-technical Central services.

    The technical hierarchy, on the other hand, was headed by the Advisor who was assisted by Chiefs, Directors, Joint Directors and other technical staff. These functionaries were drawn from the Indian Economic Service, Indian Statistical Service, Central Engineering Service and other Central technical services. The Advisor was head of the technical division and enjoyed the rank of either an Additional Secretary or a Joint Secretary.

Programme Evaluation Organisation
The Programme Evaluation Organisation (PEO) was established in 1952 as an independent unit of the erstwhile Planning Commission (now NITI Aayog). However, it functions under the general guidance and direction of the Planning Commission (now NITI Aayog).

   The PEO is headed by a Director / Chief who is assisted by Joint Directors, Deputy Directors, Assistant Directors and other staff.
The PEO has seven regional offices at Chennai, Hyderabad, Mumbai, Lucknow, Chandigarh, Jaipur and Kolkata. Each regional evaluation office of PEO is headed by a Deputy Director.

   The PEO undertakes an assessment of the implementation of development programmes and plans as contained in Five-Year Plans to provide, from time to time, feedback to the Planning Commission (now NITI Aayog) and executive agencies. It also provides technical advice to state evaluation organisations.

    On February 23, 2015, it was reported that the PEO is expected to undergo a major revamp under the NITI Aayog as the government will soon move a cabinet note proposing sweeping changes in the structure and function of the PEO.

Critical Evaluation
The erstwhile Planning Commission was originally established as a staff agency with advisory role but in the course of time it had emerged as a powerful and directive authority whereby its recommendations were considered both by the Union and states. The critics had described it as a ‘Super Cabinet’, an ‘Economic Cabinet’, a ‘Parallel Cabinet’, the ‘Fifth Wheel of the Coach’ and so on.

  The following observations were made on the domineering role played by the erstwhile Planning Commission.

1. Administrative Reforms Commission (ARC) of India: The ARCobserved: ‘Under the Constitution, the ministers, whether in the Centre or the states, are in effect, the ultimate executive authorities. Unfortunately, the Planning Commission has, in some measures, earned the reputation of being a Parallel Cabinet and sometimes, a Super Cabinet’.
2. D.R. Gadgil: D.R. Gadgil, the former Deputy Chairman of the erstwhile Planning Commission, also criticised the role of the erstwhile Planning Commission and concluded that it has failed in its task. He said: ‘The root of the failure lies in the process by which the Planning Commission, essentially only an advisory body, has come to mix itself with the actual process of the formation of public policies even in matters other than of development ... The misdirection has been helped largely by membership of the prime minister and the finance minister in the planning commission, which appears to have vested the Planning Commission and its decisions with an unnatural kind of prestige and importance’.
3. Ashok Chanda This eminent administrative analyst said, ‘The undefined position of the commission and its wide terms of reference have gradually led to its growth as the economic cabinet not merely for the Union but also for the states’.He continued, ‘The Commission has seized upon this position and extended the scope of its activities to embrace the functions and responsibilities which must both traditionally and otherwise belong to the constituted government.’ He further observed, ‘the position of preeminence accorded to the Planning Commission is inconsistent with the conception of a cabinet form of government’.
4. K. Santhanam This eminent constitutional expert stated that, ‘Planning has superseded the federation and our country is functioning like a unitary system in many respects.
5. P. V. Rajamannar Rajamannar, the Chairman of the Fourth Finance Commission, highlighted the overlapping of functions and responsibilities between the erstwhile Planning Commission and Finance Commission in federal fiscal transfers.
6. P. P. Agarwal He observed, “Though Planning Commission is an advisory organ of the government, it has come to exercise significant influence over the formation of public policies even in matters other than of development, and its advisory role, in a way, extends over the entire administration”.
7. Estimates Committee The committee opined that “The time has come when a review of entire position regarding the formal association of Cabinet Ministers of the Central Government with the Planning Commission should be made.

Abolition of Ndc
On the 1st of January, 2016, it was reported that the Modi government is also going to abolish the National Development Council (NDC) and transfer its powers to the Governing Council of the NITI Aayog. However, till now (August 2016), such a resolution has not been passed.

   It must also be noted here that the last meeting (57th) of the NDC was held on the 27th of December, 2012 to approve the 12th Plan (2012-2017).

   The National Development Council (NDC) was established in August 1952 by an executive resolution of the Government of India on the recommendation of the First Five Year Plan (draft outline). Like the erstwhile Planning Commission. It is neither a constitutional body nor a statutory body.

Composition
The NDC is composed of the following members.

1. The Prime Minister of India (as its chairman/head).
2. All Union Cabinet Ministers (since 1967)
3. The Chief Ministers of all the states.
4. The Chief Ministers/administrators of all union territories.
5. Members of the Planning Commission (now NITI Aayog).

The secretary of the Planning Commission (now NITI Aayog) acts as the secretary to the NDC. It (NDC) is also provided with administrative and other assistance for its work by the Planning Commission (now NITI Aayog).

Objectives
The NDC was established with the following objectives.

1. To secure cooperation of states in the execution of the Plan.
2. To strengthen and mobilise the efforts and resources of the nation in support of the Plan.
3. To promote common economic policies in all vital spheres.
4. To ensure balanced and rapid development of all parts of the country.

Functions
To realise the above objectives, the NDC is assigned with the following functions:

1. To prescribe guidelines for preparation of the national Plan.
2. To consider the national Plan as prepared by the Planning Commission (now NITI Aayog).
3. To make an assessment of the resources required for implementing the Plan and to suggest measures for augmenting them.
4. To consider important questions of social and economic policy affecting national development.
5. To review the working of the national Plan from time to time.
6. To recommend measures for achievement of the aims and targets set out in the national Plan.

   The Draft Five-Year Plan prepared by the Planning Commission (now NITI Aayog) is first submitted to the Union Cabinet. After its approval, it is placed before the NDC, for its acceptance. Then, the Plan is presented to the Parliament. With its approval, it emerges as the official Plan and published in the official gazette.

   Therefore, the NDC is the highest body, below the Parliament, responsible for policy matters with regard to planning for social and economic development. However, it is listed as an advisory body to the Planning Commission (now NITI Aayog) and its recommendations are not binding. It makes its recommendations to the Central and state governments and should meet at least twice every year.

Critical Evaluation
The first and foremost function of NDC is to act as a bridge and link between the Central Government, the State Governments and the Planning Commission (now NITI Aayog) especially in the field of planning, to bring about coordination of policies and programmes of plans. It has been, to a large extent successful in this regard. Besides, it has also served as a forum for Centre-State deliberations on matters of national importance, and also as a device for sharing responsibility between them in the federal political system.

     However, two diametrically opposite views have been expressed on its working. On one hand, it has been described as a ‘Super Cabinet’ due to its wide and powerful composition, though its recommendations are only advisory and not binding, and can hardly be ignored as they are backed by a national mandate. On the other hand, it has been described as a mere ‘rubber stamp’ of the policy decisions already taken by the Union government. This is mainly due to the Congress Party rule both at the Centre and states for a
long period. However, due to the emergence of regional parties in various states, the NDC is steadily acquiring its federal character and thus providing a greater say to the states in the preparation of national plans.

   The following observations are made by eminent people on the working of NDC:

1. M. Brecher This biographer of Nehru remarked: ‘The NDC was established as a supreme administrative and an advisory body on Planning—it lays down policy directives invariably approved by the cabinet. Since their inception, the NDC and its standing committee have virtually relegated the Planning Commission to the status of a research arm’ 
2. H.M. Patel This former Finance Minister observed: ‘Among the advisory bodies to the Planning Commission is included the NDC. This is surely inaccurate, as is clear from its composition. The NDC is a body obviously superior to the Planning Commission. It is, indeed, a policy-making body and its recommendations cannot but be regarded as policy decisions and not merely as advisory suggestions’.
3. K. Santhanam This eminent constitutional expert stated: ‘The position of the NDC has come to approximate to that of a super cabinet of the entire Indian federation, a cabinet functioning for the Government of India and the governments of all states.
   
4. A.P. Jain This ex-Food Minister commented: ‘The NDC encroaches upon functions that constitutionally belong to the council of ministers at the Central and state levels and sometimes approves the raised targets without prior consultation with the ministry concerned. The NDC, neither by law, nor by the nature of its composition, is a body competent to take decisions on issues at the national level. It is suited to talk, debate and advise. But it must leave the decisions to cabinets at the Centre and the states’.