Previous Year Question

Ashok Chanda described India's Planning Commission as the 'Economic Cabinet'. He believed that the Commission's extensive terms of reference and undefined institutional position had considerably increased its influence over economic policymaking. Despite being an advisory body, it began influencing economic decisions at both the Union and State levels.

The Planning Commission was established on 15 March 1950 through a resolution of the Government of India. It was neither a constitutional body nor a statutory institution established by an Act of Parliament. The Prime Minister served as its Chairman. Its principal functions included preparing Five-Year Plans, assessing resources, and determining priorities for economic and social development.

Ashok Chanda's observation was a criticism of the Planning Commission's growing administrative authority. According to him, its influence had extended beyond the limits of an ordinary advisory institution into areas traditionally belonging to the elected government. Consequently, the Planning Commission was also described as a 'Super Cabinet' and a 'Parallel Cabinet'.

On 1 January 2015, the Planning Commission was replaced by NITI Aayog. The principal objectives of NITI Aayog include providing policy and technical advice to the Union and State Governments and promoting cooperative federalism. Among the other options, the Finance Commission is a constitutional body established under Article 280, whereas the Central Council of Ministers and the Administrative Reforms Commission perform functions distinct from those of the Planning Commission.