Indian Economy
General Knowledge

Planning Commission

Planning Commission Structure and Functions

» The Central body for making plans in India is the Planning Commission.
» Planning Commission was constituted on 15th March, 1950. The Prime Minister is the ex-officio Chairman of this Commission.
» There is no provision for (or mention of) Planning Commission in the Constitution of India.
» It was constituted in the form of an advisory and specialist institution.
» It was constituted by the Union Cabinet on the proposal of a member of Union Parliament.
» The government has changed its organisation and structure from time to time.
» Pandit Jawaharlal Nehru was the first Chairman of the Planning Commission.
» There is no fix term/tenure of the Deputy Chairman and members of Planning Commission.
» The members are appointed by the government.
» The government can change the number of its members.
» The Deputy Chairman of the Planning Commission enjoys the status of a cabinet rank minister.
» The Commission estimates physical-capital and human resources.
» The Commission prepares plan for maximum effective and impartial use of national resources.
» The Commission makes critical analysis of each step and gives reformative suggestions.
» Final clearance to planning is given by "National Development Council".

National Development Council

» National Development Council was constituted on 6th August, 1952.
» The Prime Minister is the ex-officio Chairman and the Secretary of Planning Commission is the ex-officio Secretary of this Council.
» Chief Ministers of all the states and the members of Planning Commission are the members of National Development Council.
» National Development Council (NDC) is an extra constitutional body. Its aim is to make co-operative environment for economic planning between states and Planning Commission.

The main functions of NDC are :

  (i) To evaluate the management of plans from time to time.
  (ii) To analyse the policies affecting development.
  (iii) To give suggestions to achieve the aim fixed in the plans.
  (iv) To give final shape to the plan.