Recently, the West Bengal Chief Minister called for the scrapping of NITI Aayog, arguing that it only organizes annual meetings without significant utility.
Grounds for Criticizing NITI Aayog
- Ineffectiveness:
- Mamata Banerjee criticized NITI Aayog for being ineffective, claiming it only organizes annual meetings without delivering substantial results.
- Criticism of NITI Aayog: She argues that NITI Aayog lacks the authority and coordination with state governments that the Planning Commission once had.
- She argued that unlike the Planning Commission, which effectively guided national and state development, NITI Aayog lacks impact.
- Bias in Union Budget:
- She accused the BJP-led NDA government of presenting a “politically biased Budget” that favors NDA-ruled states and neglects opposition states.
- It has also been claimed that the Budget is “anti-poor” and “anti-people,” suggesting it fails to address the needs of less privileged areas.
- Lack of Transparency:
- She noted that the Planning Commission was transparent and inclusive in its approach, whereas NITI Aayog does not offer the same level of engagement or clarity.
- Unfulfilled State Dues:
- She highlighted that the Union government has not paid West Bengal’s dues, amounting to ₹1.71 lakh crore, and has withdrawn food subsidies.
- Banerjee pointed out that the Centre has not funded several rural development schemes, forcing the state to cover even the Centre’s share.
- Opposition to Central Branding:
- There is criticism against the Centre for trying to brand all centrally-sponsored schemes with its own logo, which she believes undermines the collaborative nature of these initiatives.
- Division Accusation: Banerjee alleges that the ruling party is attempting to create divisions between states like Bihar, Jharkhand, and Bengal, criticizing the government for fostering political discord.
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Planning Commission
- The Planning Commission was a key body in Indian policymaking.
- It focused on formulating and implementing Five-Year Plans for the country’s development.
- Replacement: It was replaced by NITI Aayog in 2014.
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Background
- Establishment
- Year: Founded in 2015 by the NDA government.
- Replacement: It replaced the Planning Commission, which had a top-down approach.
- Establishment: Created on March 15, 1950, by Prime Minister Jawaharlal Nehru.
- Functions: Assessed national resources, drafted development plans, and set priorities for resource use.
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Functions
- Resource Evaluation: Analyzed and enhanced the country’s capital, material, and human resources.
- Plan Drafting: Developed plans for effective resource usage.
- Implementation Stages: Defined stages for plan execution and allocated resources accordingly.
- Development Barriers: Identified obstacles to economic growth and recommended conditions for overcoming them.
- Progress Appraisal: Regularly reviewed and recommended policy changes based on progress.
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Composition
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- Chairman: Prime Minister of India.
- Deputy Chairman: Full-time executive head responsible for drafting Five-Year Plans.
- Members: Included part-time central ministers and ex-officio members like the Finance and Planning Ministers.
Role of Planning Commission in Development Process and Federalism
The Planning Commission of India, established in 1950, was crucial for the country’s development and federalism until it was replaced by the NITI Aayog in 2015.
Development Process
- Five-Year Plans:
- Economic Planning: The Planning Commission created plans every five years to set national economic goals.
- Resource Allocation: These plans guided how resources were distributed to different sectors for balanced and efficient use.
- Assessing and Using Resources:
- Resource Evaluation: The Commission evaluated the country’s capital, materials, and workforce.
- Optimal Usage: It made plans to use these resources effectively and fairly.
- Implementation and Monitoring:
- Staged Implementation: The Commission outlined stages for implementing plans and allocated resources for each stage.
- Progress Review: It regularly checked progress and made necessary adjustments.
- Policy Framework:
- Economic Policies: The Commission identified obstacles to economic growth and suggested ways to overcome them.
- Institutional Setup: It determined the institutions needed for successful plan execution.
Federalism
- Coordinating Between Centre and States: The Planning Commission acted as a link between the central and state governments, ensuring development plans matched national objectives.
- Plan Transfers: It managed plan transfers to states through schemes like Normal Central Assistance (NCA), helping distribute resources fairly.
- Promoting Cooperative Federalism: By involving states in the planning process, the Commission promoted cooperative federalism, considering state-specific needs and priorities.
- Addressing Regional Disparities: The Commission aimed to reduce regional inequalities by focusing on developing backward areas and giving special help to less developed states.
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Comparison with NITI Aayog
| Parameter |
Planning Commission |
NITI Aayog |
| Members |
8 full-time members; no part-time members |
Fewer full-time members; part-time as needed |
| Financial Clout |
Could allocate funds to ministries and states |
Advisory body, no fund allocation powers |
| Role of States |
Limited to National Development Council (NDC) meetings |
More significant role in planning and policy formation |
| Secretaries |
Appointed through usual process |
Called CEOs, appointed by the Prime Minister |
| Policy Formation |
Formulated policies and consulted states on allocation |
Consulted states during policy formulation |
| Power to Allocate Funds |
Had power to allocate funds |
No power to allocate funds |
| Policy Imposition |
Imposed policies on states |
No power to impose policies |
NITI Aayog Overview
- Full Name: National Institution for Transforming India (NITI Aayog)
- Purpose: It is the top public policy think tank of the Indian Government.
- It provides various valuable data and analytics reports that help to re-assess the government scheme.
- Objective: It aims to drive economic development, promote cooperative federalism, and involve State Governments in economic policy-making through a bottom-up approach.
- Establishment: Founded in 2015 by the NDA government.
- Replacement: It replaced the Planning Commission, which had a top-down approach.
Council Composition
- Members: Includes all state Chief Ministers, Chief Ministers of Delhi and Puducherry, Lieutenant Governors of Union Territories, and a Vice-Chairman nominated by the Prime Minister.
- Temporary Members: Selected from leading universities and research institutions, including a CEO, four ex-officio members, and three part-time members
Functioning of NITI Aayog
- Policy formulation: Providing strategic and technical advice to central and state governments.
- Promotion of cooperative Federalism: strengthen the partnership between central and state governments through collaboration and mutual support.
- Sustainable Development: Focuses on economic growth and social equity and emphasizes inclusive development.
Achievements
- Niti aayog has played a vital role in shaping national strategies such as National Health Policy, National Energy Policy, and the Atal Innovation Mission.
- Various initiatives
- Agricultural reforms:
- Model land leasing law: This law recognises the rights of tenants and safeguard the interest of the landowners.
- Several states like Uttar Pradesh and Madhya Pradesh modified their land leasing law.
- Agricultural Produce Marketing Committee Act: Niti aayog worked on APMC reforms for improving agricultural marketing and establishing a more farmer-friendly environment.
- Health initiatives:
- Health Index: Niti aayog in collaboration with the Ministry of Health & Family Welfare (MoHFW) and support of world bank developed health Index.
- This index ranks states based on their health performance.
- Atal innovation mission:
- Atal tinkering labs: Niti aayog established various tinkering labs to foster innovation and creativity among students across the country.
- Atal incubation centers: These centers support startups and entrepreneurs that promote a culture of innovation.
- Skill development programs:
- Various programs such as Skill India and Deendayal Antyodaya Yojana-National Urban Employment Guarantee Act (DAY-NULM) have been implemented by Niti aayog.
- It aimed to upgrade the skills of youth for urban employment.
- Digital India and technology initiative: The advisory body played a crucial role in promoting digital India which aimed to transform India into a digitally empowered society.
Key Initiatives
- 15-Year Roadmap: Long-term strategic planning for India’s development.
- 7-Year Vision: Strategy and action plan for medium-term goals.
- AMRUT: Urban infrastructure and development program.
- Performance Indices: Measures states’ performance in health, education, and water management.
- Chief Ministers’ Sub-Groups: Focuses on rationalizing central schemes, Swachh Bharat Abhiyan, and skill development.
- Task Forces: Address issues like agriculture, poverty, and more.
- Transforming India Lecture Series: Educational and informative series on various topics.
Role in SDG:
- Aligning national Policy: Niti aayog tries to align national policy with SDGs and ensures that various government policies, schemes, and programs meet the SDGs goal.
- Data collection and Analysis: Niti aayog collects data related to SDGs which helps in policy decision making.
- It has also developed the SDG India Index which helps to assess states and UTs in examining their progress towards achieving SDG.
- Support and capacity building: Niti aayog offers technical support to the state government in designing and implementing SDG related programs.
- Capacity building includes training and workshops for government officials to built capacity at various levels.
- Awareness and engagement: Niti aayog engages in an awareness program to raise awareness about SDG and its importance.
- It also comprises the public and stakeholders in the SDG agenda.
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July 30, 2024
