LAKSH Career Academy

LAKSH Career Academy
Author: Hiren Dave

Friday, 2 January 2015

2 JANUARY 2015: PM creates NITI aayog replacing planning commission

Ø  On New Year’s Day, the Modi government set up NITI Aayog (National Institution for Transforming India) in place of the Planning Commission. The Prime Minister will head the new institution tasked with the role of formulating policies and direction for the government. Its governing council will comprise the Chief Ministers and the Lieutenant Governors of Union Territories. The Prime Minister will appoint the Aayog’s Vice-Chairperson and Chief Executive Officer. Asian Development Bank’s former Chief Economist Arvind Panagariya is tipped to be the first Vice-Chairperson. The government plans to adopt a “Bharatiya” approach to development, says the resolution of the Union Cabinet for setting up the Aayog. India needs an administration paradigm in which the government is an enabler rather than a provider of first and last resort. 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. The institutions of governance and policy have to adapt to new challenges and must be built on the founding principles of the Constitution, the resolution says. On the planning process, it says that there is a need to separate the process from the strategy of governance. Transforming India, it further says, will involve changes of two types — consequences of market forces and those that would be planned. “The maturing of our institutions and polity also entails a diminished role for centralised planning, which itself needs to be redefined.” A state-of-the-art resource centre for good governance practices is also proposed. The Planning Commission was set up in March 1950 through a Cabinet Resolution, which the Modi government scrapped in August 2014.


Ø  Krishan Kant Paul will be sworn in as the sixth Governor of Uttarakhand.

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