The transition from the Planning Commission to NITI Aayog marked a significant shift in India's approach to economic planning and policy formulation. This evolution reflects a broader change in governance strategy and the adaptation to new socio-economic challenges.
NITI Aayog is a unique blend of the Planning Commission and the National Development Council (NDC). It serves as a think-tank for the government, providing strategic insights and policy recommendations. Unlike its predecessor, the Planning Commission, which functioned as the operational arm of the NDC, NITI Aayog integrates both roles within a single body. This integration aims to streamline decision-making processes and enhance policy coherence.
The operational dynamics have shifted significantly with NITI Aayog's establishment. It features a Governing Council that is analogous to the NDC, yet it operates with greater flexibility and adaptability. The Planning Commission, on the other hand, was primarily directed by the NDC to formulate five-year plans, a practice that has since been discontinued.
One of the notable changes is the abolition of the responsibility for socio-economic planning within NITI Aayog. The Planning Commission was tasked with drafting and implementing five-year plans, a central feature of India's economic strategy for decades. In contrast, NITI Aayog focuses on providing strategic policy inputs rather than executing plans.
NITI Aayog introduces the provision for regional councils, which allows for more localized and targeted governance strategies. This was not a feature of the Planning Commission, which operated on a more centralized model.
An important structural change is in the membership of NITI Aayog, which includes both full-time and part-time members. This offers the flexibility to incorporate a diverse range of expertise and insights. The Planning Commission, however, consisted exclusively of full-time members, which limited its adaptability.
Another significant difference lies in the allocative functions. NITI Aayog does not engage in recommending financial transfers or centrally sponsored schemes. This role was a key function of the Planning Commission, which coordinated various financial allocations and schemes across states.
Emphasizing cooperative federalism is a core focus of NITI Aayog. Unlike the Planning Commission, which did not prioritize this aspect, NITI Aayog aims to foster a collaborative environment between the central and state governments. It has developed multiple indices to enhance governance and promote competitive federalism.
In conclusion, the establishment of NITI Aayog represents a paradigm shift in India's planning framework. By emphasizing cooperative federalism and strategic policy guidance, it seeks to address contemporary governance challenges more effectively than its predecessor. This evolution underscores the ongoing effort to refine and adapt India's development strategy in an ever-changing global landscape.
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