Q.Examine the status, composition and role of the Planning Commission set up in 1950. Why is it described as an advisory body rather than a constitutional body, and how did its replacement in 2015 change the arrangement?
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Start your 14-day free trial to unlock the full solution →The Planning Commission (1950) was a non-constitutional, advisory body that shaped India’s Five-Year Plans; its replacement by NITI Aayog in 2015 shifted the model from top-down central planning to a cooperative, state-partnered approach.
The Planning Commission was established in March 1950 by a simple executive resolution of the Government of India, not by an act of Parliament or a constitutional amendment. This is the single most important fact about its legal status. Because it was created by an executive order, it had no constitutional mandate — it could be modified or abolished by the same executive authority without legislative approval. Its role was to formulate Five-Year Plans, allocate resources, and coordinate between the Centre and states for economic development. The Prime Minister served as its ex-officio Chairperson, and its members included economists, administrators, and technical experts.
Why is it described as an advisory body? The Constitution of India, adopted in 1950, does not mention any planning authority. The Planning Commission therefore had no statutory powers to enforce its recommendations. It could propose targets, allocate funds, and monitor progress, but it could not compel states to follow its plans. States could — and sometimes did — resist or modify central directives. The Commission’s influence came from its control over central plan funds and its proximity to the Prime Minister’s Office, not from any constitutional authority. In legal terms, it was a think tank with teeth, but still an advisory body.
The distinction between “constitutional” and “advisory” matters because constitutional bodies (like the Election Commission or the Finance Commission) have powers and protections that cannot be altered by a simple executive order. The Planning Commission had no such safeguards.
The Commission’s composition reflected its advisory nature. It had a full-time Deputy Chairman (often a technocrat), several full-time members, and the Prime Minister as Chairperson. The Finance Minister, the Planning Minister, and other key cabinet ministers were often part-time members. State Chief Ministers were not formal members, though they were consulted through the National Development Council (NDC), a separate forum created in 1952. This structure meant the Commission was essentially a central government body, not a federal institution.
The Planning Commission’s lack of constitutional status meant it could be abolished without amending the Constitution. This is exactly what happened in 2014-15. …
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