UPSC MainsPUBLIC-ADMINISTRATION-PAPER-II201420 Marks
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Q13.

How far do you agree with the view that the National Development Council (NDC) could resonate the demands of State governments as long as the Planning Commission is kept subservient to it? Critically examine.

How to Approach

This question requires a nuanced understanding of the historical relationship between the National Development Council (NDC) and the Planning Commission, and the dynamics of centre-state relations in India. The answer should critically assess the claim that the NDC could effectively represent state interests only if the Planning Commission was subordinate to it. It needs to explore the constitutional basis of both bodies, their functions, and the power dynamics involved. A historical perspective, tracing the evolution of both institutions, is crucial. The answer should also acknowledge the eventual dismantling of the Planning Commission and the role of NITI Aayog.

Model Answer

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Introduction

The National Development Council (NDC), established in 1952, served as the apex body for formulating India’s Five-Year Plans. It aimed to secure coordination between the Centre and States in the process of development. Simultaneously, the Planning Commission, established in 1950, was the principal formulating body. The question posits that the NDC’s ability to represent state demands hinged on the Planning Commission’s subservience. This argument stems from the inherent tension between centralized planning and the federal structure of India. While the NDC included Chief Ministers, its effectiveness in truly resonating state demands was often debated, particularly concerning the Planning Commission’s dominant role in plan formulation and resource allocation.

Historical Context and Constitutional Basis

The Indian Constitution, while establishing a federal structure, leans towards a centralized model, particularly in financial matters. The Planning Commission, initially conceived by Jawaharlal Nehru, held significant power in shaping economic policy and allocating resources. The NDC, comprising the Prime Minister, Union Ministers, and Chief Ministers of all states, was intended to provide a platform for consensus-building. However, the Planning Commission often presented pre-formulated plans to the NDC, limiting the scope for genuine state input.

The Dynamics of Power: NDC vs. Planning Commission

The argument that the NDC could effectively represent state demands only if the Planning Commission was subservient rests on several points:

  • Resource Allocation: The Planning Commission controlled the bulk of central assistance to states. If it operated independently, it could prioritize national objectives over state-specific needs, diminishing the NDC’s influence.
  • Plan Formulation: The Commission drafted the Five-Year Plans, and the NDC largely ratified them. A subservient Planning Commission would be more receptive to state priorities during plan formulation.
  • State Representation: While the NDC included Chief Ministers, their influence was often limited by the technical expertise and bureaucratic weight of the Planning Commission.

Evidence Supporting the View

Several instances demonstrate the Planning Commission’s dominance. During the early decades, states often voiced concerns about the allocation of funds and the prioritization of projects. The NDC, despite having state representation, struggled to significantly alter the Commission’s decisions. For example, in the 1960s, several southern states protested against the criteria used for allocating central funds, arguing they disadvantaged states with better social indicators. The NDC could not effectively address these concerns due to the Planning Commission’s firm control over resource allocation.

Counterarguments and Limitations

However, the claim of complete subservience is an oversimplification. The NDC did play a role in influencing the Planning Commission, albeit limited.

  • Political Pressure: Chief Ministers, as heads of their state governments, could exert political pressure on the central government to address their concerns through the NDC.
  • Consensus Building: The NDC served as a forum for dialogue and negotiation, fostering a degree of consensus on national development goals.
  • State Plans: States were also responsible for formulating their own plans, which were then integrated into the national plan. This provided some avenue for state input.

The Dismantling of the Planning Commission and the Rise of NITI Aayog

In 2014, the Planning Commission was replaced by NITI Aayog (National Institution for Transforming India). This decision was partly driven by the perception that the Planning Commission had become rigid and unresponsive to the changing needs of the country. NITI Aayog adopts a more collaborative approach, emphasizing cooperative federalism and state-led development. The Governing Council of NITI Aayog, comprising the Prime Minister and Chief Ministers, is intended to be a more effective platform for coordinating development efforts. The shift reflects a recognition that a centralized planning model is no longer suitable for a diverse and dynamic economy.

Critical Assessment

While the NDC’s effectiveness was undoubtedly constrained by the Planning Commission’s power, attributing its limitations solely to the Commission’s lack of subservience is an overstatement. The inherent structural imbalances within the Indian federal system, coupled with the centralized nature of economic policymaking, played a significant role. The NDC, despite its composition, lacked the institutional capacity and political leverage to consistently override the Planning Commission’s decisions. The transition to NITI Aayog represents an attempt to address these shortcomings by fostering a more collaborative and decentralized approach to development planning.

Conclusion

In conclusion, the view that the NDC could resonate state demands only if the Planning Commission was subservient holds some merit, particularly concerning resource allocation and plan formulation. However, it’s a simplification of a complex dynamic. The NDC’s limitations stemmed from broader structural issues within the Indian federal system and the centralized nature of economic planning. The dismantling of the Planning Commission and the establishment of NITI Aayog signify a move towards greater state participation and cooperative federalism, aiming to address the historical imbalances and enhance the effectiveness of national development efforts.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Cooperative Federalism
A system of governance where the central and state governments work together to achieve common goals, sharing power and resources. It emphasizes collaboration and mutual respect for each other's autonomy.
Five-Year Plans
Comprehensive economic plans adopted by India from 1951 to 2017, outlining the nation’s development goals and strategies for a five-year period. They were central to India’s economic planning process.

Key Statistics

As of 2023, states account for approximately 60% of total government expenditure in India.

Source: Reserve Bank of India Report on State Finances (2023)

Between 1951 and 2017, India implemented 12 Five-Year Plans.

Source: Planning Commission Archives (Knowledge cutoff 2024)

Examples

Kerala’s Public Health System

Kerala’s success in achieving high health indicators, despite limited financial resources, demonstrates the potential of state-led development initiatives. The state prioritized public health and implemented innovative programs, showcasing its ability to effectively utilize resources and address local needs.

Frequently Asked Questions

What were the main criticisms leveled against the Planning Commission?

The Planning Commission was criticized for being overly bureaucratic, inflexible, and unresponsive to changing economic realities. It was also accused of promoting a ‘top-down’ approach to planning, neglecting the specific needs and priorities of states.

Topics Covered

EconomyPolityGovernanceEconomic PlanningCentre-State RelationsNational Development