Planning Commission

• The Planning Commission was established on 15 March 1950 through a resolution of the Government of India on the recommendation of the Advisory Planning Board constituted in 1946, under the chairmanship of K.C. Neogi.
• Nature: Non-constitutional and non-statutory body.

Composition of the Planning Commission

• Chairperson: The Prime Minister of India served as the ex-officio Chairperson and presided over the meetings of the Commission.
• Deputy Chairman: Served as the de facto executive head responsible for the day-to-day functioning of the Commission.
• Part-Time Members: Certain Union Ministers were appointed as part-time members of the Commission.
• Full-Time Members: The Commission generally had four to seven full-time expert members, who enjoyed the rank of Union Ministers of State.
• Member-Secretary: The Commission had a Member-Secretary.
• Representation of States: State Governments had no direct representation in the Planning Commission.

Functions of the Planning Commission

• Assessment of Resources: Assess the country’s material, capital and human resources, including technical personnel, and investigate the possibilities of augmenting them.
• Formulation of Plans: Formulate a Plan for the most effective and balanced utilisation of the country’s resources
• Determination of Priorities: Determine priorities and define the stages in which the plan should be carried out.
• Identification of Obstacles: Identify factors hindering economic development and determine the conditions which, in view of the current social and political situation, should be established for the successful execution of the Plan
• Determine the nature of the machinery which will be necessary for securing the successful implementation of each stage of the Plan in all its aspects;
• Monitoring and Evaluation: Periodically assess progress in plan implementation and recommend necessary policy adjustments.
• Make appropriate recommendations for facilitating the discharge of its duties, or on a matter referred to it for advice by Central or state governments

Advisory Role of the Planning Commission

• The Planning Commission was only an advisory body. It formulates Plans but has no executive authority to implement them. The responsibility for taking decisions and implementing plans rested with the Central and State Governments.

Replacement of the Planning Commission

• Replacement: The Planning Commission was replaced by NITI Aayog (National Institution for Transforming India) on 1 January 2015.