Non Constitutional Bodies: NITI Aayog and the NDC

Neither statement is correct. NITI Aayog was created by a Union Cabinet resolution of 1 January 2015, as a policy decision of the government; it was not recommended by the Fourteenth Finance Commission, whose task under Article 280 was the sharing of tax revenue for 2015–20. Its Chairperson is the Prime Minister, and it also has a Vice-Chairperson, full-time and part-time members, ex officio Union ministers and a CEO. The President has no role in it.

NITI Aayog was created by a resolution of the Union Cabinet and came into existence on 1 January 2015. The idea was announced earlier, when the Prime Minister declared in his Independence Day speech of 15 August 2014 that the Planning Commission would be replaced. Thus 2014 is the year of the announcement and 2015 is the year of birth; 26 January and 1 April 2015 have no link with its creation.

Two of the four are members. Under the 2015 Cabinet resolution, the Governing Council of NITI Aayog consists of the Prime Minister as Chairperson, the Chief Ministers of all States and of UTs with legislatures, and the Lieutenant Governors of the other UTs, with the Vice-Chairperson and members taking part. The Chief Justice of India heads the judiciary and the CAG is the constitutional auditor of government accounts; neither has any place in an executive policy forum.

Only statement 2 is correct. The Governing Council of NITI Aayog, chaired by the Prime Minister, includes the Chief Ministers of all States and of the Union Territories with legislatures, and the Lieutenant Governors of the other UTs; it is the main forum of cooperative federalism. Statement 1 is wrong: NITI Aayog was set up by an executive (Cabinet) resolution of 1 January 2015, so it is neither a constitutional nor a statutory body.

NITI stands for National Institution for Transforming India; 'Aayog' is the Hindi word for commission. The Cabinet resolution of 1 January 2015 describes it as the government's premier policy think tank, meant to foster cooperative federalism with the States and to give strategic and technical advice. Unlike the Planning Commission, it has no role in allocating funds, which the name 'Institution' rather than 'Commission' was meant to signal.

The Planning Commission was set up in March 1950 (15 March) by a resolution of the Government of India, with Jawaharlal Nehru as its first Chairman. It was an extra- constitutional, non-statutory body that drew up twelve Five-Year Plans, the first starting in 1951, and it was replaced by NITI Aayog on 1 January 2015. 1952 is the year of the National Development Council, and 1947–48 predate the Republic.

Neither statement is correct. The National Development Council was set up on 6 August 1952 by an executive resolution of the Union Government; the Constitution (Seventh Amendment) Act, 1956 reorganised the States and has nothing to do with it. The NDC was chaired by the Prime Minister, and its members were the Union Cabinet ministers, the Chief Ministers of all States, UT administrators and members of the Planning Commission. It gave final approval to the Five-Year Plans, the Deputy Chairman only served it.

Arvind Panagariya, an economist at Columbia University, was the first Vice- Chairperson of NITI Aayog, from January 2015 to August 2017. He was followed by Rajiv Kumar (2017–2022) and then by Suman Bery (from 2022). Montek Singh Ahluwalia was the last Deputy Chairman of the Planning Commission (2004–2014); the post of Vice-Chairperson is the NITI Aayog counterpart of that office.

Ad hoc and standing committees of Parliament review regulators (a). Regulators such as TRAI, IRDAI and CERC are created by laws passed by Parliament and answer to it. They are examined by Parliament's ad hoc committees (1) and Department-Related Standing Committees (2), which question officials and study their reports. The Finance Commission (3) divides tax revenue between the Centre and states. The FSLRC (4), led by Justice B.N. Srikrishna, was a one-time body that suggested reforms to financial laws. NITI Aayog (5) is an advisory think tank. None of these reviews regulators.

India has 24 DRSCs, set up in 1993. Notice the debate on stronger oversight of regulators, such as the FSLRC's call for regular performance reviews.

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NITI Aayog was set up on 1 January 2015, by a Cabinet resolution, to replace the Planning Commission (1950) (d). Neither body is constitutional or statutory. The Finance Commission (b) is a constitutional body under Article 280 and continues. The Human Rights Commission (a) is statutory under the 1993 Act, and the Law Commission (c) is set up by the government for fixed terms; neither was replaced.

NITI Aayog works as a think tank and promotes cooperative federalism, with a Governing Council of the PM and all Chief Ministers. Notice how planning shifted from top-down plans to advice and indices.

Answer as per the official UPSC answer key.

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