Context:
With representatives from ten States and Union Territories skipping the ninth Governing Council meeting of the NITI Aayog, chaired by the Indian Prime Minister, questions have arisen about the think tank’s role.
Relevance:
GS2-
- NITI Aayog
- Planning
- Co-operative Federalism
Mains Question:
What was the rationale behind the creation of NITI Aayog? Examine the structural and functional issues plaguing its performance. (10 Marks, 150 Words).
About NITI Aayog:
- Planning has been ingrained in the Indian mindset as leaders were influenced by the socialist atmosphere of the former USSR.
- For nearly six decades, the Planning Commission functioned as the vehicle for planning, using a control and command approach.
- On January 1, 2015, the Planning Commission was replaced by a new institution, NITI Aayog, emphasizing a ‘Bottom-Up’ approach to realize the vision of Maximum Governance, Minimum Government, reflecting the spirit of ‘Cooperative Federalism.’
What about the Composition of NITI Aayog?
- Chairperson: Prime Minister
- Vice-Chairperson: Appointed by the Prime Minister
- Governing Council: Includes Chief Ministers of all states and Lt. Governors of Union Territories.
- Regional Council: Addresses specific regional issues, comprising Chief Ministers and Lt. Governors, and is chaired by the Prime Minister or a nominee.
- Adhoc Membership: Two members in an ex-officio capacity from leading research institutions on a rotational basis.
- Ex-Officio Membership: Up to four from the Union Council of Ministers, nominated by the Prime Minister.
- Chief Executive Officer: Appointed by the Prime Minister for a fixed term, with the rank of Secretary to the Government of India.
- Special Invitees: Experts and specialists with domain knowledge, nominated by the Prime Minister.
What are NITI Aayog Hubs?
- Team India Hub: Acts as an interface between States and the Centre.
- Knowledge and Innovation Hub: Builds the think tank’s expertise of NITI Aayog.
The Aayog plans to produce three documents: a 3-year action agenda, a 7-year medium-term strategy paper, and a 15-year vision document.
Rising Dissatisfaction with the Think Tank’s Role:
- Seven of these representatives boycotted the meeting, including the Chief Ministers of Tamil Nadu, Kerala, Karnataka, Telangana, Punjab, Himachal Pradesh, and Jharkhand, due to concerns over the perceived lack of allocations and projects for their States in the Union Budget.
- The boycott, along with West Bengal Chief Minister Mamata Banerjee’s later walkout, indicates dissatisfaction with the think tank’s role as merely an advisory body to the Union Government.
- This discontent is mainly among leaders of the political opposition. Established by the NDA government during its first term to replace the Planning Commission, the NITI Aayog was intended to move away from the “top-down” approach and focus on “cooperative federalism.”
- However, by remaining an advisory body without power over resource distribution or allocation to States and focusing on creating indices to evaluate States, it has inadvertently led to “competitive federalism.”
- Meanwhile, the Finance Ministry retains unrestricted power over State grants. Unlike the Planning Commission, which faced its own criticism, at least it allowed for consultations with States on such matters.
Recent Developments:
- The situation hasn’t improved with the ruling party campaigning in State elections on the promise of “double engine” governments, leading to complaints from Opposition-ruled States that the Centre has favored some States for investment projects.
- The government’s reliance on the support of parties ruling Bihar and Andhra Pradesh—States facing various developmental deficits—and the Finance Minister’s clear intention to address their demands specifically in the Budget have not gone unnoticed by the government’s critics.
- Regardless of the validity of this argument, the fact remains that consultations with States on grants and projects have decreased since the Planning Commission was dissolved.
Conclusion:
While the 16th Finance Commission is responsible for addressing horizontal imbalances among States and the Finance Ministry focuses on macroeconomic stability and the financial system, there is a need for institutional support at the Centre to promote growth through infrastructure and capital investments in States. The NITI Aayog should be reimagined to restore some of the responsibilities the Planning Commission had for States to achieve genuine “cooperative federalism.“
