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Q57 (IAS/2014) Economy › Growth, Development, Poverty & Employment › Economic planning India Official Key

Which of the following are associated with 'Planning' in India? 1. The Finance Commission 2. The National Development Council 3. The Union Ministry of Rural Development 4. The Union Ministry of Urban Development 5. The Parliament Select the correct answer using the code given below.

Result
Your answer: —  ·  Correct: C
Explanation

All five institutions listed are associated with planning in India. The Finance Commission has been involved through financial transfers to states and making these more equitable[1]. The National Development Council (NDC) approved the Approach to the Twelfth Five Year Plan and set growth targets[3]. The Ministry of Rural Development implements several major schemes including MGNREGA and rural livelihood missions[4]. The Ministry of Urban Development has been involved in regional planning, such as the National Capital Region plan[5]. The Parliament (legislature) provides a platform for discussing national policies and development plans[6], and India adopted planning as an instrument of rapid economic progress after independence, with the Planning Commission coordinating and supervising resource management[7]. Therefore, all five institutions have been associated with planning in India.

Sources
  1. [1] https://www.niti.gov.in/sites/default/files/2023-08/12fyp_vol1.pdf
  2. [2] https://www.niti.gov.in/sites/default/files/2023-02/Niti_annual_report-2014-15.pdf
  3. [3] https://www.niti.gov.in/sites/default/files/2023-08/12fyp_vol1.pdf
  4. [4] https://www.niti.gov.in/sites/default/files/2023-02/Niti_annual_report-2014-15.pdf
  5. [5] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > Table 15.1 > p. 95
  6. [6] Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 6: The Parliamentary System: Legislature and Executive > Challenges to the Effective Functioning of the Legislatures > p. 157
  7. [7] Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 7: FEDERALISM > FEDERALISM WITH A STRONG CENTRAL GOVERNMENT > p. 161
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Q. Which of the following are associated with 'Planning' in India? 1. The Finance Commission 2. The National Development Council 3. The Unio…
At a glance
Origin: Books + Current Affairs Fairness: Low / Borderline fairness Books / CA: 4/10 · 6/10

This question is a classic test of 'Institutional Mandates'. It hinges entirely on distinguishing the specific role of the Finance Commission (Fiscal Federalism/Tax Devolution) from the Planning machinery (Five Year Plans). If you know the Finance Commission deals with Article 280 and not Plan formulation, the answer is derived purely by elimination.

How this question is built

This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.

Statement 1
Is the Finance Commission of India associated with planning in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 4/5
"of financial transfers to the States have been transfers under the Finance Commission awards and Plan transfers. The successive Finance Commissions have tried to make these more equitable."
Why this source?
  • Directly links Finance Commission awards with Plan transfers to states, indicating an interaction between finance allocation and planning.
  • Explains that successive Finance Commissions have influenced the formula for Plan transfers, showing a role in planning-related resource distribution.
Web source
Presence: 4/5
"preferably by the Finance Commission, Planning Commission, Centre of Excellence in Environmental Economics and the MoEF."
Why this source?
  • Places the Finance Commission alongside the Planning Commission as part of an institutional mechanism for implementing environmental compensation and related schemes.
  • This pairing indicates the Finance Commission is considered a stakeholder in planning and policy implementation processes.
Web source
Presence: 5/5
"Planning is also consistent with the guidance of India’s Fifteenth Finance Commission."
Why this source?
  • States that planning is consistent with the guidance of India’s Fifteenth Finance Commission, directly linking the Commission to the planning function.
  • Frames the Finance Commission as providing guidance relevant to planning at the federal level.

Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 46: Finance Commission > ADVISORY ROLE > p. 432
Strength: 5/5
“33 1. As rightly observed by 1) P. V. Rajwani, the Chairman of the Fourth Finance Commission, 'Since the Finance Commission is a constitutional body expected to be quasi-judicial, its recommendations should not be turned down by the Government of India unless there are very compelling reasons. The Constitution of India envisages the Finance Commission as the balancing wheel of fiscal federalism in India. However, till 2014, its role in the Centre-state fiscal relations was under determined by the erstwhile Planning Commission, a non-constitutional and a non-statutory body. The Dr. P. V. Report of the Fourth Finance Commission , New Delhi, Government of India, 1965, pp.”
Why relevant

States that the Finance Commission is a constitutional body for fiscal federalism but that its role was 'undermined by the erstwhile Planning Commission' until 2014, implying an interaction or overlap between fiscal allocation and planning functions.

How to extend

A student could use this to check whether planning bodies (e.g., Planning Commission) historically made fiscal decisions that affected planning, suggesting the Finance Commission's role might intersect with planning finance.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 46: Finance Commission > ADVISORY ROLE > p. 432
Strength: 5/5
“3D.D. B..1 su, I lIrmdt/criml /0 tlu: Gotlslitution of Illdia, Wadhw<I 19lh Ed ition, 2001 , p. 331. As rightly observed by 1)1: P. V. R..janwllnar, the Chairn11l of the Fourth Finance Commissio n, uSince the Finance Commission is a constitutiona l body expected to be quasijudicial, its recommendations shou ld not be turned down by the Gove rnment of India unless there are very compell ing reason s". The Constitution of India envisages the Finance commission as the balancing wheel of fiscal federalism in India. However, till 2014, its role in the Centre-state fiscal relations was undermined by the erstwhile Planning Commission, a non-constitutional and a non-statutory body.”
Why relevant

Repeats that the Finance Commission is constitutional and that the erstwhile Planning Commission undermined its Centre–State fiscal role, again indicating a relationship (or competition) between planning machinery and the Finance Commission's fiscal remit.

How to extend

One could compare the mandates of both bodies to see whether planning functions implied control over resources that the Finance Commission also recommends.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 56: NITI Aayog > ERSTWHILE PLANNING COMMISSION > p. 471
Strength: 4/5
“The erstwhile Planning Commission was established in March 1950 by an executive resolution of the Government of India, (i.e., the Union Cabinet) on the recommendation of the Advisory Planning Board constituted in 1946, under the chairmanship of K.C. Neogi. Thus, the erstwhile Planning Commission was neither a constitutional body nor a statutory body. In India, it was the supreme organ of planning for social and economic development. Functions The functions of the erstwhile Planning Commission included the following: • 1. To make an assessment of material, capital and human resources of the country, and investigate the possibilities of augmenting them. • 2.”
Why relevant

Describes the Planning Commission as the 'supreme organ of planning' and lists its planning functions, establishing what 'planning' entailed and which body performed it.

How to extend

A student could contrast this catalogue of planning functions with the Finance Commission's constitutional mandate to see if planning tasks fall within the Finance Commission's remit or remain with the Planning/its successors.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > REGIONAL DIMENSIONS OF PLANNING IN INDIA > p. 12
Strength: 4/5
“The main functions of the Planning Commission of India are: • (i) to formulate five year/annual plan;• (ii) to supervise the work of national planning;• (iii) to consider the national plans formulated by the Planning Commission;• (iv) to recommend measures for achieving the targets set out by the plans;• (v) to review the working and to monitor the plans from time to time; (vi) to encourage people's participation in the planning process. Unfortunately, the planning process in India in its first two Five-Year Plans did not incorporate the regional dimension. There were no”
Why relevant

Lists concrete functions of the Planning Commission (formulating five-year/annual plans, supervising national planning, recommending measures), clarifying the practical scope of planning in India.

How to extend

Using these functions, one could test whether the Finance Commission's reports or terms of reference ever include these planning activities or only fiscal distributions.

Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 15: Centre State Relations > Punchhi Commission > p. 164
Strength: 3/5
“be either referred to the next Finance Commission or an expert committee be appointed to look into the matter. • 31. Bring greater accountability, all fiscal legislations should provide for a annual assessment by an independent body and the reports of these bodies should be laid in both Houses of Parliament/state legislature.• 32. Considerations specified in the Terms of Reference (To R) of the finance Commission should be even handed as between the Centre and the states. into a full-fledged department, serving as the permanent secretariat for the Finance Commissions. • 37. The Planning Commission has a crucial role in the current situation.”
Why relevant

Notes that matters may be referred to the next Finance Commission or an expert committee and states 'The Planning Commission has a crucial role', implying procedural links between planning bodies and the Finance Commission in addressing fiscal or planning issues.

How to extend

A student could investigate specific instances where planning issues were referred to the Finance Commission to judge the extent of association between planning and the Finance Commission.

Statement 2
Was the National Development Council an institution associated with planning in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"57th Meeting of the National Development Council (NDC) was held on 27th December, 2012 ... on the issue of Approach to the Twelfth Five Year Plan (2012-17)."
Why this source?
  • Describes a meeting of the National Development Council (NDC) specifically convened to discuss the Approach to the Twelfth Five Year Plan.
  • Links the NDC meeting to senior government leadership (Prime Minister, Chief Ministers), indicating a central planning role.
Web source
Presence: 5/5
"The Approach Paper to the Twelfth Plan, approved by the National Development Council (NDC) in 2011, had set a target of 9 per cent aver-age growth of GDP over the Plan period."
Why this source?
  • States that the Approach Paper to the Twelfth Plan was approved by the National Development Council (NDC).
  • Shows the NDC directly approving planning documents and targets for the Five Year Plan.
Web source
Presence: 5/5
"The Gadgil formula was formulated with the formulation of the third five-year plan for the distribution of plan transfers amongst the states. ... The National Development Council (NDC) approved the following formula:"
Why this source?
  • Links the NDC to formulation and approval of the Gadgil formula for distribution of plan transfers among states.
  • Demonstrates the NDC's role in decisions related to the Five Year Plans and allocation of central assistance — core planning functions.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > REGIONAL DIMENSIONS OF PLANNING IN INDIA > p. 12
Strength: 5/5
“The planning process in India, however, remained highly centralised for all these sixty years with little decentralisation. The main components of the planning machinery in India include: • (a) The Planning Commission of India,• (b) The National Development Council, and• (c) The State Level Planning Boards for each state. The Planning Commission of India, headed by the Prime Minister and having a full time Deputy Chairman, was constituted in 1950 as an advisory as well as an executive body.”
Why relevant

Explicitly lists 'The National Development Council' as one of the main components of the planning machinery in India.

How to extend

A student could combine this with a timeline or map of Indian institutions to judge that NDC was functionally part of national planning structures.

Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 26: ADMINISTRATIVE RELATIONS BETWEEN THE UNION AND THE STATES > CHAP. 26 ADMINISTRATIVE RELATIONS BETWEEN THE UNION AND THE STATES > p. 400
Strength: 5/5
“Criticism: The government's move to replace the Planning Commission with a new institution called "NITI Aayog" was criticised by opposition parties of India. The Congress sought to know whether the reform introduced by the BJP-led government was premised on any meaningful programme or if the move was simply born out of political opposition to the party that ran the Planning Commission for over 60 years. The working of the Planning Commission led to the National Development Council. being set up as another extra-constitutional and extra-legal body. This Council was formed in 1952, as an adjunct to the Planning Commission, to associate the states in the formulation of the plans.”
Why relevant

States the NDC was formed in 1952 as an adjunct to the Planning Commission 'to associate the states in the formulation of the plans', linking NDC to plan formulation.

How to extend

Knowing that the Planning Commission drafted five-year plans, one could infer NDC's role in approving or coordinating those plans across states.

Rajiv Ahir. A Brief History of Modern India (2019 ed.). SPECTRUM. > Chapter 38: Developments under Nehru’s Leadership (1947-64) > Concept of Planning for Economic Development > p. 645
Strength: 5/5
“The body was assigned the task of economic planning in the form of five-year plans. The prime minister, himself, was the ex-officio chairman of the commission. The National Development Council (NDC), which was to give final approval to the plans, was established on August 6, 1952. The First Five Year Plan (1951-1956), based on Harrod-Domar model, sought to get the nation's economy out of the cycle of poverty. It addressed, mainly, the agrarian sector including investments in dams and irrigation. Huge allocations were made for large-scale projects like the Bhakhra Nangal Dam. It also focused on land reforms. The Second Plan, drafted under the leadership of P.C.”
Why relevant

Says the NDC 'was to give final approval to the plans' and notes its establishment date, tying it directly to the five-year planning process.

How to extend

A student could use standard facts about five-year plans (e.g., Planning Commission responsibility) to see NDC as the approval/oversight body for national plans.

Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 6: Economic Planning in India > 6.22 Indian Economy > p. 153
Strength: 4/5
“• Sl. No.: ; Planning Commission (PC): PC reported to National Development Council comprising of Chief Ministers and Lt. Governors.; NITI Aayog (NA): NA has Governing Council with Chief Ministers of States and Lt. Governors of UTs as members. • Sl. No.: 8; Planning Commission (PC): PC used to impose policy on States.; NITI Aayog (NA): NA has no power to impose policy. It is essentially an advisory body.”
Why relevant

Indicates that the Planning Commission reported to a 'National Development Council comprising of Chief Ministers and Lt. Governors', showing an organizational reporting relationship.

How to extend

Combining this with knowledge of Indian federal structure (states' CMs), one can infer NDC coordinated centre–state planning links.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 56: NITI Aayog > TNATIONAL DEVELOPMENT l COUNCIL > p. 472
Strength: 4/5
“On the 1st of January, 2016, it was reported that the Modi government is also going to abolish the National Development Council (NDC) and transfer its powers to the Governing Council of the NITI Aayog. However, till now such a resolution has not been passed. It must also be noted that the last meeting (57th) of the NDC was held on the 27th of December, 2012 to approve the 12th Plan (2012-2017). The NDC was established in August 1952 by an executive resolution of the Government of India on the recommendation of the First Five • 14 Report of the Fourth Finance Commission, New Delhi, Government or India, 1965, pp.”
Why relevant

Notes NDC's establishment by executive resolution (1952) and that it continued meeting to approve plans (last meeting in 2012), implying an institutional role in planning across decades.

How to extend

Using the dates and meeting purpose, a student could map NDC's longevity and role in successive national plans to assess its planning association.

Statement 3
Is the Union Ministry of Rural Development associated with planning in India?
Origin: Web / Current Affairs Fairness: CA heavy Web-answerable

Web source
Presence: 5/5
"These schemes -- the Mahatma Gandhi National Rural Guarantee Act (MGNREGA), the Indira AwaasYojana (IAY), the National Rural Livelihoods Mission (NRLM)-Aajeevika, and the National Social Assistance Programme (NSAP) – are implemented by the Ministry of Rural Development (MoRD)."
Why this source?
  • Links the Planning body (NITI Aayog, erstwhile Planning Commission) with schemes implemented by the Ministry of Rural Development.
  • Shows the planning institution oversees schemes that the Ministry of Rural Development implements, indicating an association with planning.
Web source
Presence: 4/5
"Draft National Land Reforms Policy, 2013 Department of Land Resources, Ministry of Rural Development (MoRD)"
Why this source?
  • Attributes national land policy and draft land acquisition legislation to the Department/Ministry of Rural Development, showing MoRD's role in national policy/planning.
  • Indicates MoRD involvement in drafting planning-related legal and policy documents.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 56: NITI Aayog > ERSTWHILE PLANNING COMMISSION > p. 471
Strength: 5/5
“The erstwhile Planning Commission was established in March 1950 by an executive resolution of the Government of India, (i.e., the Union Cabinet) on the recommendation of the Advisory Planning Board constituted in 1946, under the chairmanship of K.C. Neogi. Thus, the erstwhile Planning Commission was neither a constitutional body nor a statutory body. In India, it was the supreme organ of planning for social and economic development. Functions The functions of the erstwhile Planning Commission included the following: • 1. To make an assessment of material, capital and human resources of the country, and investigate the possibilities of augmenting them. • 2.”
Why relevant

Describes the erstwhile Planning Commission as 'the supreme organ of planning for social and economic development' and lists its planning functions.

How to extend

A student could note that a central body performed national planning and then check whether Union ministries (like Rural Development) implement or feed into such central planning processes.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 19
Strength: 4/5
“and commits to work towards the development of rural areas. The main objective of Integrated Rural Development is to eradicate poverty, hunger and unemployment from rural India. The integrated rural development programme was confined in the initial phase to 2000 blocks out of the then 5004 development blocks in the country. Through coverage under this programme, about 3000 blocks and over 5.45 lakh families have been assisted. It is a centrally sponsored scheme with funds shared on 50:50 basis between the Centre and the states. The programme was intended to generate gainful employment for all able-bodied persons in rural areas within a period of about ten years by introducing such schemes as would help development of production potential of each area, and utilisation and upgrading of the human skills available.”
Why relevant

Explains that Integrated Rural Development Programme (IRDP) is a centrally sponsored scheme with funds shared between Centre and states.

How to extend

From this pattern, a student could infer that the Union (central) government plays a planning/financing role in rural programmes and investigate whether the Union Ministry administers such central schemes.

Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 20
Strength: 4/5
“These families will also need support from social services such as health, education, and housing. The IRDP is implemented through District Rural Development Agencies (DRDAs) and Block Level Agencies at the grass-root level. The governing body of DRDAs include local MPs, MLAs, Chairman of Zila-Parishad, Heads of District Development Departments, representatives of Scheduled Castes and Scheduled Tribes, and women. Some of the important integrated rural development programmes include National Rural Development Programme (NRDP), Minimum Needs Programme (MNP), Training of Rural Youth for Self-Employment (TRYSEM, 1979), Development of Women and Children in Rural Areas (DWCRA, 1982), and Indira Awaas Yojna (IAY, 1985), etc.”
Why relevant

States IRDP is implemented through District and Block level agencies and lists central integrated rural development programmes (NRDP, MNP, TRYSEM, DWCRA, IAY).

How to extend

A student could use this to reason that central ministries design programmes which are then planned/implemented at multiple levels, suggesting the Union Ministry of Rural Development may be involved in planning those programmes.

Politics in India since Independence, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Politics of Planned Development > Planning Commission > p. 48
Strength: 3/5
“Do you recall any reference to the Planning Commission in your book Constitution at Work last year? Actually there was none, for the Planning Commission is not one of the many commissions and other bodies set up by the Constitution. The Planning Commission was set up in March, 1950 by a simple resolution of the Government of India. It has an advisory role and its recommendations become effective only when the Union Cabinet approved these.”
Why relevant

Explains the Planning Commission was set up by the Government of India with an advisory role, requiring Union Cabinet approval for its recommendations.

How to extend

A student could extend this to check relationships between central advisory/planning bodies and Union ministries to see how planning recommendations translate into ministry actions in rural development.

Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > C. Y.K. Rao Committee > p. 386
Strength: 3/5
“in the scheme of democratic decentralisation. It stated that "the district is the proper unit for planning and development and the Zilla Parishad should become the principal body for management of all development programmes which can be handled at that level." (ii) The Panchayat Raj institutions at the district and lower levels should be assigned an important role with respect to planning, implementation and monitoring of rural development programmes. (iii) Some of the planning functions at the state level should be transferred to the district level planning units for effective decentralized district planning. (iv) A post of District Development Commissioner should be created.”
Why relevant

C. Y.K. Rao Committee recommendation that the district is the proper unit for planning and that Panchayat Raj institutions should be assigned important roles in planning rural development.

How to extend

A student could combine this decentralised planning rule with knowledge that the Union Ministry issues national programmes to assess whether the Union Ministry coordinates planning frameworks that district/local bodies implement.

Statement 4
Is the Union Ministry of Urban Development associated with planning in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > Table 15.1 > p. 95
Presence: 5/5
“New Delhi: Vikas Publishing House, 1977.• 9. Dube, K.N.(ed.)., Planning and Development in India. New Delhi: Asia Publishing House, 1990.• 10. Chaudhuri, M.D., "The Problems of Multi-Level Planning and Decision making in India." In Social Issue in Regional Policy and Regional Planning. Edited by Antoni Kuklinski . The Hague: Mouton & Co., 1977.• 11. Geddes, P., Cities in Evolution. New Revised Ed. Benn, 1968.• 12. Gilkson, A., Regional Planning and Development. Netherlands: Leiden, 1955.• 13. Government of India, Regional Plan, 2001—National Capital Region, National Capital Region PB, Ministry of Urban Development, New Delhi (1988).• 14. Government of India, 1974, Report of the Commissioner for Scheduled Castes and Scheduled Tribes, 1971–72 and 1972–73.• 15.”
Why this source?
  • Snippet explicitly cites the Ministry of Urban Development as the responsible body for the Regional Plan (National Capital Region) — showing direct involvement in regional planning.
  • The citation ties a Government of India regional plan to the Ministry, indicating the Ministry undertakes planning tasks at the Union level.
Statement 5
Is the Parliament of India associated with planning in India?
Origin: Direct from books Fairness: Straightforward Book-answerable
From standard books
Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 6: The Parliamentary System: Legislature and Executive > Challenges to the Effective Functioning of the Legislatures > p. 157
Presence: 5/5
“As discussed, the Indian legislature (including the Parliament at the Centre and the State Assemblies) has the critical and vital role of enacting laws, overseeing administrative processes, and approving the budget. It also provides a platform for discussing national policies, development plans, international relations, and addressing public grievances. However, the legislature also faces several challenges in its effective functioning.”
Why this source?
  • Explicitly states the legislature (including Parliament) provides a platform for discussing national policies and development plans.
  • Frames Parliament as part of the legislative body that oversees and debates development planning.
Indian Constitution at Work, Political Science Class XI (NCERT 2025 ed.) > Chapter 7: FEDERALISM > FEDERALISM WITH A STRONG CENTRAL GOVERNMENT > p. 161
Presence: 4/5
“Parliament also assumes the power to make laws on subjects within the jurisdiction of the States.• ± Even during normal circumstances, the central government has very effective financial powers and responsibilities. In the first place, items generating revenue are under the control of the central government. Thus, the central government has many revenue sources and the States are mostly dependent on the grants and financial assistance from the centre. Secondly, India adopted planning as the instrument of rapid economic progress and development after independence. Planning led to considerable centralisation of economic decision making. Planning commission appointed by the union government is the coordinating machinery that controls and supervises the resources management of the States.”
Why this source?
  • Notes that India adopted planning as the instrument of development and that planning led to centralisation of economic decision-making.
  • Identifies Planning Commission (appointed by the union government) as the coordinating machinery controlling and supervising states' resource management — linking central institutions (under Parliament/Union) to planning.
Indian Polity, M. Laxmikanth(7th ed.) > Chapter 40: Municipalities > Salient Features > p. 402
Presence: 4/5
“However, the Parliament may extend the provisions of this part to the scheduled areas and tribal areas subj ect to such exceptions and modifications as it may specify. District Planning Committee Every state shall constitute at the district level, a district planning committee to consolidate the plans prepared by panchayats and municipalities in the district, and to prepare a draft development plan for the district as a whole. The state legislature may make provisions with respect to the following: • The composition of such committees; • 2. The manner of election of members of such committees; • 3. The functions of such committees in relation to district planning; and • 4.”
Why this source?
  • Describes District Planning Committees and their role in district planning, a part of the constitutional/legislative framework for planning.
  • States that Parliament may extend relevant provisions to scheduled and tribal areas, showing a legislative (Parliamentary) role in enabling planning institutions.
Pattern takeaway: UPSC tests the 'Exclusive Jurisdiction' of bodies. When options list multiple institutions, identify the one whose constitutional mandate (like the Finance Commission's Art 280) strictly excludes the function in question (Planning). Elimination is often the only way to bypass ambiguous options like Ministries.
How you should have studied
  1. [THE VERDICT]: Sitter. Solvable instantly by eliminating Statement 1. Source: Laxmikanth (Chapters on Finance Commission vs. Planning Commission).
  2. [THE CONCEPTUAL TRIGGER]: The 'Machinery of Planning' in India. Specifically, the hierarchy of Plan Formulation (Planning Commission) → Approval (NDC) → Ultimate Accountability (Parliament).
  3. [THE HORIZONTAL EXPANSION]: Memorize the 'Planning Flow': Draft by Planning Commission → Approval by NDC (PM + CMs) → Discussion in Parliament. Contrast this with the 'Fiscal Flow': Finance Commission (Art 280) recommends tax distribution → President → Parliament.
  4. [THE STRATEGIC METACOGNITION]: Do not interpret 'associated' in a loose, general English sense. In UPSC Polity, 'Planning' refers to the formal institution of the Five-Year Plans. Ask: Does this body have a formal mandate to *create* or *approve* the Plan document? Ministries implement, they don't 'Plan' in this constitutional sense.
Concept hooks from this question
📌 Adjacent topic to master
S1
👉 Distinction between Finance Commission and Planning Commission
💡 The insight

The references contrast the Finance Commission's fiscal/quasi‑judicial role with the Planning Commission's planning/advisory role, which is central to the question of association with planning.

Frequently tested in UPSC polity questions about institutional roles and inter‑agency relations. Knowing this distinction helps answer questions on functions, overlap and conflicts between bodies. Prepare by mapping each body's constitutional/statutory status and primary functions, and practise source‑based comparisons.

📚 Reading List :
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 46: Finance Commission > ADVISORY ROLE > p. 432
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 56: NITI Aayog > ERSTWHILE PLANNING COMMISSION > p. 471
  • Politics in India since Independence, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Politics of Planned Development > Planning Commission > p. 48
🔗 Anchor: "Is the Finance Commission of India associated with planning in India?"
📌 Adjacent topic to master
S1
👉 Constitutional vs non‑constitutional bodies
💡 The insight

References state Finance Commission is created under Article 280 (constitutional) while the Planning Commission was set up by executive resolution (non‑constitutional).

High‑yield concept for questions on permanence, authority, and legal status of institutions. Useful for essays and prelims/ mains MCQs asking about creation and powers of bodies. Study relevant constitutional provisions and textbook summaries to recall examples and implications.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 46: Finance Commission > CHAPTER" 46 Finance Commission > p. 431
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 56: NITI Aayog > ERSTWHILE PLANNING COMMISSION > p. 471
  • Politics in India since Independence, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Politics of Planned Development > Planning Commission > p. 48
🔗 Anchor: "Is the Finance Commission of India associated with planning in India?"
📌 Adjacent topic to master
S1
👉 Finance Commission's role in fiscal federalism (not planning)
💡 The insight

Evidence frames the Finance Commission as the 'balancing wheel' of Centre‑state fiscal relations and a quasi‑judicial body for tax/devolution issues, rather than a planning body.

Core for questions on Centre‑state finances, devolution of resources, and institutional checks. Master the Finance Commission's terms, functions and interactions with planning bodies to tackle questions on fiscal governance and reforms.

📚 Reading List :
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 46: Finance Commission > ADVISORY ROLE > p. 432
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 46: Finance Commission > CHAPTER" 46 Finance Commission > p. 431
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 46: Finance Commission > ADVISORY ROLE > p. 432
🔗 Anchor: "Is the Finance Commission of India associated with planning in India?"
📌 Adjacent topic to master
S3
👉 Integrated Rural Development Programmes (IRDP) and implementation structure
💡 The insight

IRDP and related rural schemes show how rural development programmes are designed and implemented at centre, state, district and block levels.

High-yield for UPSC: questions often ask about flagship rural schemes, their objectives, funding pattern (centre-state sharing), and implementation agencies (DRDAs, block agencies). Connects to topics on welfare schemes, federal finance, and administrative structure. Prepare by studying scheme objectives, funding modalities, and grass‑root implementing bodies.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 18
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 19
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > INTEGRATED RURAL DEVELOPMENT PROGRAMME (IRDP) > p. 20
🔗 Anchor: "Is the Union Ministry of Rural Development associated with planning in India?"
📌 Adjacent topic to master
S3
👉 Central planning institutions — Planning Commission / NITI Aayog
💡 The insight

References identify the Planning Commission as the central advisory/planning organ and note its replacement by NITI Aayog.

Core concept for polity and governance: understanding which bodies formulate national plans, their constitutional status, and functions is frequently tested. Links to budgeting, federal cooperation (National Development Council), and policy-making. Study evolution, functions, and institutional status through NCERT and standard polity texts.

📚 Reading List :
  • Politics in India since Independence, Textbook in political science for Class XII (NCERT 2025 ed.) > Chapter 3: Politics of Planned Development > Planning Commission > p. 48
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 56: NITI Aayog > ERSTWHILE PLANNING COMMISSION > p. 471
🔗 Anchor: "Is the Union Ministry of Rural Development associated with planning in India?"
📌 Adjacent topic to master
S3
👉 Decentralised planning and role of Panchayati Raj institutions
💡 The insight

Evidence stresses the district as unit of planning and assigns Panchayati Raj institutions roles in planning, implementation and monitoring of rural development.

Important for questions on decentralisation, rural governance, and implementation of development schemes. Helps answer items on functions devolved to PRIs, district planning units, and administrative reforms. Master by linking committee recommendations (e.g., C.Y.K. Rao) to constitutional provisions and real‑world scheme implementation.

📚 Reading List :
  • Indian Polity, M. Laxmikanth(7th ed.) > Chapter 39: Panchayati Raj > C. Y.K. Rao Committee > p. 386
  • Laxmikanth, M. Indian Polity. 7th ed., McGraw Hill. > Chapter 39: Panchayati Raj > C. Y.K. Rao Committee > p. 386
🔗 Anchor: "Is the Union Ministry of Rural Development associated with planning in India?"
📌 Adjacent topic to master
S4
👉 Union ministry involvement in regional/urban planning
💡 The insight

Reference [1] shows the Ministry of Urban Development authoring a regional plan; reference [8] discusses national urbanisation policy and policy formulation for urban development.

High-yield for institutional questions: UPSC often asks which central ministries/agencies prepare/implement urban and regional plans. Understand which Union-level bodies produce regional plans and urban policy, how these interact with state/local bodies, and trace historical name/structural changes. Prepare by mapping ministries to functions and reviewing major national plans/policies.

📚 Reading List :
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 15: Regional Development and Planning > Table 15.1 > p. 95
  • Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 14: Settlements > The National Urbanisation Policy > p. 52
🔗 Anchor: "Is the Union Ministry of Urban Development associated with planning in India?"
🌑 The Hidden Trap

The 'Plan vs. Non-Plan' expenditure distinction. Historically, the Planning Commission controlled 'Plan Expenditure' (discretionary), while the Finance Commission dealt with 'Non-Plan' (statutory). Although abolished in 2017, understanding this friction explains why FC is NOT part of the Planning machinery.

⚡ Elimination Cheat Code

The 'Constitutional Lane' Hack. The Finance Commission (Statement 1) is a Constitutional Body with a written job description in Article 280. 'Planning' is not in that description. Since Options A, B, and D all include Statement 1, eliminating it leaves only Option C. You didn't even need to know if Ministries were involved.

🔗 Mains Connection

Mains GS-2 (Federalism): The tension between a political Planning Commission (centralizing) and a constitutional Finance Commission (federalizing) is a core debate. Use this to argue for/against the NITI Aayog's lack of financial powers.

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SIMILAR QUESTIONS

IAS · 2004 · Q52 Relevance score: 3.23

Consider the following statements: 1. The highest deciding body for planning in India is the Planning Commission of India. 2. The Secretary of the Planning Commission of India is also the Secretary of National Development Council. 3. The Constitution includes economic and social planning in the Concurrent List in the Seventh Schedule of the Constitution of India. Which of the statements given above is/are correct?

IAS · 2013 · Q73 Relevance score: 2.82

Who among the following constitute the National Development Council? 1. The Prime Minister 2. The Chairman, Finance Commission 3. Ministers of the Union Cabinet 4. Chief Ministers of the States Select the correct answer using the codes given below.

CDS-I · 2003 · Q68 Relevance score: 2.75

The highest body which approves the Five- Year Plan in India is the

IAS · 2013 · Q94 Relevance score: 2.57

Consider the following statements : 1. National Development Council is an organ of the Planning Commission. 2. The Economic and Social Planning is kept in the Concurrent List in the Constitution of India. 3. The Constitution of India prescribes that Panchayats should be assigned the task of preparation of plans for economic development and social justice. Which of the statements given above is/are correct?

IAS · 2002 · Q88 Relevance score: 2.15

With reference to Indian Polity, which one of the following statements is correct?