Topic: NITI Ayog
Planning Commission (PC) -Firstly, lets start with the long gone Planning commission. It was a non-constitutional and non-statutory body which had the mandate to prepare the approach paper and draft five year plan. It facilitated multi-level, multi-stage and multi-agency planning. We needed a commission sort of body as the process requires greater level of Division of Labour(DOL). But there was lot of criticism surrounding this body - Domination of Prime Minister, bypassing the cabinet, political interference, it overshadowed the role of Finance Commission, there was no direct accountability, facilitated vertical federalism etc.
Do we still need planning then? Yes, for the marginalized sections of the society; For ensuring sustainable development; for spatial planning; balanced regional development; Strategic Vision;
After the scrapping of PC, this role is being currently undertaken by the Finance Ministry. And subsequently it will be passed to the NITI Ayog. For starters, one should know what it stands for. National Institution for Transforming India. Few Pointers about this new body....
1. This new economic think-tank, manned by domain experts, has been constituted to provide strategic and technical advice to the Centre and the State governments on key policy matters. The Planning Commission also did this but allegedly in a heavily centralised, big-brother way suited to a command economy.
2. It hopes to replace the one way Centre-to-State flow of policy with ‘cooperative federalism’. The NITI Aayog will now recommend policies. Their implementation will be up to the governments
3. Importantly, unlike the Planning Commission, the NITI Aayog does not have the power of allocating central funds to States. This will now be done by the finance ministry.
4. The governing council of the NITI Aayog has on board the chief ministers of all the States and lieutenant governors of the Union Territories. This council, in its first meeting, decided to undertake a review of centrally sponsored schemes — whether they should be continued, transferred to States or scrapped.
5. The Aayog will recommend a national agenda, including strategic and technical advice on elements of policy and economic matters. It will also develop mechanisms for village-level plans and aggregate these progressively at higher levels of government
Cons:
1. Lack of clarity ---ongoing plan. many States have requested the Union Government that now that this new structure is here, it should for the time being continue the work carried out earlier by Planning commission as the determination of annual funds and allocation of funds is quintessential for the States to proceed with their Plans.
2. What will happen to social sector spending? As earlier it was tied to various Centrally Sponsored Schemes and not that States would have more fiscal discretion, there is no guarantee that they would continue doing so.
3. Fiscal prudence and frugal innovation missing in States. Especially some of the newly formed states who at this moment might not be financially viable and are dependent on the Union govt. for guidance and monitoring.
4, There is also this view that would a think tank at Union level would make sense. Assam has put forward that the "Make In India" campaign would hardly be any use for it as there is no industrial base there. Plus, Kerala has raised the issue that scheme like "Beti bachao" and "jan Dhan" would not benefit the state as the state has already achieved targets in these domains.
5. The opposition parties has labelled it as a mere "name-change" exercise!
Planning Commission (PC) -Firstly, lets start with the long gone Planning commission. It was a non-constitutional and non-statutory body which had the mandate to prepare the approach paper and draft five year plan. It facilitated multi-level, multi-stage and multi-agency planning. We needed a commission sort of body as the process requires greater level of Division of Labour(DOL). But there was lot of criticism surrounding this body - Domination of Prime Minister, bypassing the cabinet, political interference, it overshadowed the role of Finance Commission, there was no direct accountability, facilitated vertical federalism etc.
Do we still need planning then? Yes, for the marginalized sections of the society; For ensuring sustainable development; for spatial planning; balanced regional development; Strategic Vision;
After the scrapping of PC, this role is being currently undertaken by the Finance Ministry. And subsequently it will be passed to the NITI Ayog. For starters, one should know what it stands for. National Institution for Transforming India. Few Pointers about this new body....
1. This new economic think-tank, manned by domain experts, has been constituted to provide strategic and technical advice to the Centre and the State governments on key policy matters. The Planning Commission also did this but allegedly in a heavily centralised, big-brother way suited to a command economy.
2. It hopes to replace the one way Centre-to-State flow of policy with ‘cooperative federalism’. The NITI Aayog will now recommend policies. Their implementation will be up to the governments
3. Importantly, unlike the Planning Commission, the NITI Aayog does not have the power of allocating central funds to States. This will now be done by the finance ministry.
4. The governing council of the NITI Aayog has on board the chief ministers of all the States and lieutenant governors of the Union Territories. This council, in its first meeting, decided to undertake a review of centrally sponsored schemes — whether they should be continued, transferred to States or scrapped.
5. The Aayog will recommend a national agenda, including strategic and technical advice on elements of policy and economic matters. It will also develop mechanisms for village-level plans and aggregate these progressively at higher levels of government
Structure of NITI Aayog:
Prime Minister of India as the Chairperson.
Governing Council comprising the Chief Ministers of all the States and Lt. Governors of Union Territories.
Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee.
Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister.
The full-time organizational framework will comprise of, in addition to the Prime Minister as the Chairperson:-
i. Vice-Chairperson: To be appointed by the Prime Minister.
ii. Members: Full-time.
iii. Part-time members: Maximum of 2 from leading universities research organizations and other relevant institutions in an ex-officio capacity. Part time members will be on a rotational basis.
iv. Ex Officio members: Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.
v. Chief Executive Officer : To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India.
vi. Secretariat as deemed necessary.
Major Objectives:ii. Members: Full-time.
iii. Part-time members: Maximum of 2 from leading universities research organizations and other relevant institutions in an ex-officio capacity. Part time members will be on a rotational basis.
iv. Ex Officio members: Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime Minister.
v. Chief Executive Officer : To be appointed by the Prime Minister for a fixed tenure, in the rank of Secretary to the Government of India.
vi. Secretariat as deemed necessary.
- NITI Aayog will seek to provide a critical directional and strategic input into the development process.
- The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought to be replaced by a genuine and continuing partnership of states.
- NITI Aayog will emerge as a "think-tank" that will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy.
- The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better Inter-Ministry coordination and better Centre-State coordination. It will help evolve a shared vision of national development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation.
- The NITI Aayog will develop mechanisms to formulate credible plans to the village level and aggregate these progressively at higher levels of government. It will ensure special attention to the sections of society that may be at risk of not benefiting adequately from economic progress.
Cons:
1. Lack of clarity ---ongoing plan. many States have requested the Union Government that now that this new structure is here, it should for the time being continue the work carried out earlier by Planning commission as the determination of annual funds and allocation of funds is quintessential for the States to proceed with their Plans.
2. What will happen to social sector spending? As earlier it was tied to various Centrally Sponsored Schemes and not that States would have more fiscal discretion, there is no guarantee that they would continue doing so.
3. Fiscal prudence and frugal innovation missing in States. Especially some of the newly formed states who at this moment might not be financially viable and are dependent on the Union govt. for guidance and monitoring.
4, There is also this view that would a think tank at Union level would make sense. Assam has put forward that the "Make In India" campaign would hardly be any use for it as there is no industrial base there. Plus, Kerala has raised the issue that scheme like "Beti bachao" and "jan Dhan" would not benefit the state as the state has already achieved targets in these domains.
5. The opposition parties has labelled it as a mere "name-change" exercise!
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