5.16        ndian    onom
         (i) The PC be scrapped and replaced with                  allocation of centrally collected revenue
             the Reform and Solutions Commission                   to the states and the finance ministry be
             (RSC), which should be staffed with                   tasked with the division of funds among
             experts with domain knowledge and kept                the various central ministries.
             free from any ministerial administrative        The recommendations of the IEO (a
             structure. The new body should have
                                                        brainchild of the PC itself) on the PC were quite
             full-time representation of major trade
                                                        surprising, even shocking to few. Whether the new
             and industry organisations, civil society
                                                        body replacing the PC will be a betterment over
             representatives, academics, etc., so as to
             capture their concerns and benefit from    the latter and will be able to carve out its desired
             their expertise in formulating long–term   aims is a matter to be evaluated and analysed in
             strategy.                                  future. Meanwhile, we can visibly find some of
        (ii) The RSC will perform three main            the recommendations of the IEO resonating in
             functions:                                 the newly created body, the NITI Aayog, the
                                                        replacement for the PC.
             (a) Serve as a solutions exchange and
                 repository of ideas that have been     [Note: While a detailed literature has been
                 successful in different aspects of     included on the ‘NITI Aayog’ in this edition (as
                 development in various states and      the last sub-topic), the literature on the PC has
                 districts, and in other parts of the   been left unchanged for ease of understanding and
                 world;                                 comparative purpose.]
             (b) Provide ideas for integrated systems
                 reform; and                               nAtIonAL dEVELopMEnt councIL
             (c) Identify new and emerging challenges
                                                        The National Development Council (NDC)
                  and provide solutions to preempt
                  them.                                 was set up on August 6, 1952 by a Resolution59
                                                        issued from the Cabinet Secretariat. The first Plan
       (iii) The current functions of the PC be taken
                                                        recommended its formation with a very concise
             over by other bodies, ‘which are better
             designed to perform those functions’.      and suitable observation:
       (iv) Since the state governments have better          “In a country of the size of India where the
             information about local requirements and   states have under the constitution full autonomy
             resources than the central government      within their own sphere of duties, it is necessary
             and central institutions, they should      to have a forum such as a National Development
             be allowed to identify priorities and      Council at which, from time to time, the Prime
             implement reforms at the state level,      Minister of India and the Chief Ministers of the
             independent of mandatory diktats from      states can review the working of the plan and of its
             the central institutions.                  various aspects.”60
        (v) The task of long-term economic thinking           There were some strong reasons why the
             and coordination can be performed by       NDC was set up, which may be seen as follows:
             a new body established to act solely as a
             ‘think tank’ within the government.          59.   Cabinet Secretariat, Resolution No. 62/CF/50
                                                                (06.08.1952) Government of India, New Delhi.
       (vi) The Finance Commission be made                60.   Planning Commission, First Five year Plan: A Draft Outline
             a permanent body responsible for the               (New Delhi: Government of India, 1957), p. 253.