Planning Commission (योजना आयोग)

“An institution responsible for the formulation of Five-Year Plans and centralized economic planning in India until 2014.”

Introduction

  • The **Planning Commission** was established in **March 1950** by an **executive resolution** of the Government of India.
  • It was a **non-constitutional** and **non-statutory body**, meaning it was not created by the Constitution or law.
  • The Planning Commission was dissolved in **2014** and replaced by **NITI Aayog** in **January 2015**.

Objectives of the Planning Commission

  • To assess the country’s resources and develop plans for effective use.
  • To determine priorities and formulate **Five-Year Plans** for economic development.
  • To promote balanced regional development and reduce poverty and inequality.
  • To suggest strategies for industrial and agricultural growth.

Structure of the Planning Commission

  • Chairman: Prime Minister of India
  • Deputy Chairman: Appointed by the PM; enjoyed the rank of a Cabinet Minister
  • Full-Time Members: Experts in various fields
  • Ex-Officio Members: Some Union Ministers

Five-Year Plans (1951–2017)

  • India launched its **First Five-Year Plan in 1951**, based on the **Harrod-Domar Model**.
  • There were **12 Five-Year Plans** till 2017. The 12th Plan (2012–2017) was the last.
  • Post-2017, India follows a **three-year action agenda** under NITI Aayog.

Difference Between Planning Commission and NITI Aayog

Planning Commission NITI Aayog
Top-down approach Bottom-up approach
Had the power to allocate funds No financial allocation powers
Centralized planning Cooperative federalism
Formulated Five-Year Plans Formulates long-term policy and strategies
Static structure Dynamic and flexible body

Important Contributions

  • Green Revolution during the 3rd and 4th Plans
  • Growth in infrastructure like roads, electricity, and irrigation
  • Promotion of self-reliant and mixed economy model
  • Poverty alleviation programs like IRDP, MNREGA etc.

Previous Year Questions

  • SSC CGL 2018: Planning Commission was replaced by?
  • NITI Aayog
  • HSSC 2019: Who was the chairman of the Planning Commission?
  • Prime Minister
  • RRB NTPC 2020: When was the Planning Commission established?
  • 1950
Note: The Planning Commission played a historic role in India’s economic journey but was eventually replaced to match modern governance challenges.

Conclusion

The Planning Commission laid the foundation of planned development in India. Though it has been replaced by NITI Aayog, its legacy continues in shaping India’s policy-making and economic thinking.

StartPreparation