Economics · Ch 5 — Planning and NITI Aayog
Planning Commission and NITI Aayog Compared
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Planning Commission and NITI Aayog Compared
Although NITI Aayog replaced the Planning Commission in the same broad space of national development policy, the two institutions differ sharply in their approach, powers and structure, as the following comparison for TSBIE Class 12 Economics students shows.
| Basis | Planning Commission | NITI Aayog |
|---|---|---|
| Established | March 1950, by Cabinet Resolution | 1 January 2015, by Cabinet Resolution |
| Approach | Top-down; centralised formulation of plans | Bottom-up; involves states from the grassroots upward |
| Financial powers | Could allocate plan funds to ministries and states | Has no power to allocate funds; this rests with the Finance Ministry |
| Role of states | States were largely recipients of centrally decided plans | States are treated as equal partners, represented on the Governing Council |
| Federalism | Centralising in practice, despite formal consultation with states | Explicitly promotes both cooperative and competitive federalism |
| Planning horizon | Rigid Five Year Plans | Flexible Vision (15-year), Strategy (7-year) and Action Agenda (3-year) documents |
| Membership | Deputy Chairman and appointed members, mostly central | Vice-Chairperson, full-time/part-time/ex-officio members, plus a Governing Council of Chief Ministers and Lt. Governors |